As an analyst friend said after glancing at this chart*:
" A Trend is Emerging"
That is certainly true of the wind companies. As we saw in last Wednesday's "What's Wrong With Wind? (GE; VESTY; FLR; HSN.L; SI)" the Vice-chairman of General Electric spoke of. "a wind market that has really collapsed in the US".
Here's the latest from the Financial Times' Energy Source blog:
Yesterday’s confirmation that the government would protect £60m of spending on port infrastructure gave an important fillip to the UK offshore wind industry.*The stock is Phillip Morris (now Altria). The move depicted is 8 cents to $25.06.
But today the industry had much more worrying news from Vestas, the market leader in this area, who have decided to slash 14 per cent from its overall workforce, at a cost of 3,000 jobs. Clare MacCarthy reports from Copenhagen:
Vestas, the world’s largest wind power company, is to cut up to 3,000 jobs – some 14 per cent of its global workforce – because of excess capacity and a cut in order expectations in Europe.The closures of four production facilities in Denmark and one in Sweden were announced on Tuesday with the Denmark-based group’s third-quarter results. Net profits fell to €126m ($176m) from €165m a year earlier and sales declined 5.1 per cent to €1.72bn....MORE