Wind turbine maker Vestas to cut 1400 more jobs

Vestas, the world's top wind turbine maker, said Wednesday it planned to eliminate another 1,400 jobs this year, in addition to the more than 2,300 positions it has already said it would shed. "The further reduction in the workforce is part of the continued cost saving plans which Vestas has been working on since November 2011," chief executive Ditlev Engel said. The additional job cuts are expected to increase the savings in the company's fixed costs from 150 million to 250 million euros ($310 million). "It is always unfortunate to have to say goodbye to good colleagues in Vestas, but we have said before that 2012 will be tough and 2013 will be even tougher for Vestas, and in order to reach our target of making 2013 profitable, it is unfortunately a necessity," added Engel. The additional job cuts will take the company's work force down to 19,000 by the end of the year, instead of the 20,400 previously planned. Despite the downsizing of staff the company managed to increase its production by 16 percent in the second quarter compared to the same period in 2011. Sales rose by 15 percent to 1.6 billion euros. But it still posted a net loss of 8 million euros for the period from April to June. However its operating profit measured by earnings before interest and tax came in at 40 million euros, for an operating profit margin of 2.5 percent. The company maintained its target of an operating margin of 0-4 percent for the year on sales of 6.5 to 8.0 billion euros. The company's shares were up 1.33 percent after an hour of trading, while the Copenhagen market was down 0.65 percent overall.