Turbine maker Vestas plans 3,000 job cuts

Vestas, the world's largest wind turbine manufacturer, said on Tuesday it would axe 3,000 jobs and shut some plants to adjust to weaker demand, after it posted a smaller-than-expected drop in third-quarter profit. Earnings before interest and tax at the Danish company fell to €185 million ($259.7 million) in the three months to end-September from 244m in the same quarter last year.

The result beat an average forecast for a drop to €114m in a Reuters poll of 17 analysts, whose estimates ranged from 58m to 150m. "In 2011, the European market growth will...not live up to Vestas' expectations, which is why Vestas is compelled to adjust its capacity in Europe," Vestas Wind Systems A/S said. Vestas said it would book one-off costs - mainly writeoffs of property, plant and equipment related to the job cuts - of €140m - €160m in the fourth quarter. "Adjusted for the above, Vestas retains its expectations for 2010 as announced in August," Vestas said.