Vestas shows strong growth in 2000

April 6, 2001à‚–Vestas Wind Systems A/S released its account statement March 28, showing strong growth for the company in 2000, as well as for the market for wind energy as a whole.

The financial statements show that Vestas expects the wind power market to continue to expand rapidly, based on continued growth of electricity demand, a rise in the level of environmental awareness, and continued improvement in wind power technology.

The Vestas Group, including associated companies, achieved a global market share in 2000 of 32%. Turnover increased 37% over 1999 to DDK 6,451 million ($766 million), of which 90% was sold outside of Denmark. The company’s profit after tax and interest was DDK 847 million ($101 million), an increase of 42% over 1999’s profit.

The company is expecting 2001 to be a very good year for the wind power market. Based on its performance in 2000 and order backlogs for 2001, it has now raised its goal for market share (measured in accumulated installed MW capacity) from 25% to 30%.

The company expects 2001 to be a strong year in the American market. Assuming the wind energy production tax credit (PTC) is extended, Vestas estimates that growth will slow in 2002, to pick up again in 2003, following the cyclical pattern of the American wind power market of the past years.

In other company news, in 2000, Vestas took over the remaining 50% share in Italian Wind Technology, making it a wholly-owned subsidiary.

The Vestas group is an international business with subsidiaries and joint ventures in eight countries and sales in more than 35 countries on four continents. Vestas maintains wind turbine production facilities at seven locations in Denmark, 10 in Spain, one in Germany, one in Italy, and one in India. At the end of 2000, Vestas and its associated companies had total annual production capacity of 3,250 MW. Vestas will increase capacity in 2001 to approximately 4,300 MW.

Germany is still Vestas’s largest market, with Spain finishing second in 2000. Vestas reports that it sold 103 MW in the U.S. and Canada in 2000, capturing 58% of the market. Sales in 2000 were down from 127 MW in 1999, as a result of the boom-and-bust cycle that a short-term PTC extension creates. The extension of the PTC in 1999 to expire at the end of 2001 resulted in a number of large orders for delivery in 2001, so Vestas reports that expectations for the coming year are “particularly positive.”

During 2000, Vestas put the “OptiSpeed” V52 850-kW, V66 1.75-MW, and V80 2-MW turbines in serial production. For the North American market where the OptiSpeed technology is not available, a V80 1.8-MW “OptiSlip” turbine is being developed.

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