The wind energy industry continues to struggle and Vestas Wind (VWDRY) is confirming what General Electric is seeing .. weak demand. GE went so far as to say the US wind energy market has collapsed. Vestas hasn’t made similar claims, but their actions speak much louder than words.
The company is cutting 3000 jobs and shutting plants due to shrinking power demand, rising component costs and uncertain US policy. So much for Obama’s push to be a leader in clean energy. It is failing in many regards and the wind energy market is a prime example of that. While the company posted a smaller than expected loss in 3rd quarter profits, they indicated that the European wind energy market won’t live up to expectations either.
Shares of Vestas are down nearly 10% today despite beating analyst earnings estimates and trading very close to the 2008 lows.
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Vestas also said they are still hiring in China and USA but its Europe that is slower lower demand and their backlog is higher than ever in history…….lets report BOTH sides of the news please!
I have no reason to be biased and try to report the facts. I was summarizing a reuters article and I think the big picture take away is simple. Wind energy is really struggling and that’s reflected in ALL wind energy related stocks. Does that mean that companies with interests in China wind energy won’t do well next year, in five years? Of course not.
I have not read that they are still hiring in the US and China. If you have a URL please post it and I will update the article.