2019 Vault Rankings
At a Glance
The largest provider and manufacturer of wind turbines worldwide
Competitive salaries and comprehensive benefits package
Lack of demand and failure to meet sales targets has resulted in thousands of layoffs
Some insiders believe the company is disorganized with poor leadership from management
Denmark-based Vestas Wind Systems is the largest international developer, provider and manufacturer of wind turbines with a goal of working toward providing the world with wind-generated energy; however, it has failed to reach shorter term financial goals which has resulted in repeat layoffs in the tens to the thousands.
About Vestas Wind Systems A/S
Vestas Wind Systems and its subsidiaries manufacture and sell land-based wind turbines used to produce electricity. In all, Vestas has installed about 59,000 wind turbines in more than 70 countries. Besides installation, Vestas is the world's largest servicer of wind turbines and maintains more than 42,000 turbines with a combined capacity of 87,000 GW. Offshore turbines are offered through MHI Vestas Offshore Wind – a 50:50 joint venture with Mitsubishi Heavy Industries. The company's data analytics offerings help customers improve predictability and efficiency and better integrate with energy grids. Vestas generates about 45% of its sales in the Americas.
Note: Growth rates may differ after conversion to US Dollars.
Except for a slight dip in 2017, Vestas' revenue has grown steadily the last five years, rising more than 46% between 2014 and 2018. Strong demand for wind power globally and a healthy backlog have driven the company's growth.
Sales in 2018 increased nearly 2% to €10.1 billion compared to €9.9 billion in 2017. Growth in 2018 was fueled by Vestas' onshore service business, which saw sales increase 10% over 2017 as the company's growing fleet of installed wind turbines generated more revenue. Wind turbine sales in 2018 improved slightly over 2017 levels. Stronger turbine sales were offset somewhat by downward pressure on pricing.
Profit for 2018 fell 23% to €684 million in 2018 compared to 2017, primarily due to lower margins on turbine sales that were driven by increased competition and lower prices as well as ramp-up costs associated with new products. These effects were partially offset by improved profits in the service segment.
Cash at the end of 2018 was €2.9 billion, a decrease of €735 million from the prior year. Cash from operations contributed €1 billion to the coffers, while investing activities used €603 million, mainly for capital expenditures. Financing activities used €639 million, primarily for the purchase of treasury shares and dividend payments.
The combined pressures of climate change, rising global population, and increasing energy consumption add up to opportunity for Vestas Wind Systems. The company is the global leader for its number of onshore turbines and onshore service and is the number two player in offshore turbines through its 50% stake in MHI Vestas Offshore Wind.
Vestas plans to maintain its leading positions by growing faster than the overall market while keeping margins up and offering customers more efficient products and services that keep energy production costs down. The company hopes to capitalize as mature energy markets decarbonize and electricity demand in emerging markets rises sharply.
Vestas wants to increase its onshore systems' market share and global presence in the fastest-growing emerging markets. The company is also focused on more integrated onshore offerings including engineering, procurement, and construction contracts to capture more revenue in the renewable energy value chain.
In its onshore service business, Vestas plans to better leverage its installed base of onshore turbines through artificial intelligence and automation to deliver insights that help customers improve predictability and efficiency and better integrate with energy grids.
Offshore, the company is targeting countries including Taiwan, Japan, and the US for growing its number of installed turbines while maintaining its strong position in the North Sea region. Key to this strategy is MHI Vestas' V164 offshore turbine (including the V164 -10MW – the industry's largest turbine) that the company believes will help it win more business in established and emerging markets.
Phone: 45 97 30 00 00
Employer Type: Publicly Owned
Deputy Chairman: Lars Josefsson
Chairman: Bert Nordberg
President and CEO: Anders Runevad
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