Troubled Danish wind power company Vestas has appointed a new chief executive as it looks to deal with mounting losses. The firm was completing a two-year cost cutting scheme to return to profitability.
The world's second-largest wind turbine producer announced Wednesday it had appointed Anders Runevad of Sweden as its new CEO. The 53-year-old former director at telecom giant Ericsson was to take over from Ditlev Engel on September 1, Vestas reported.
Board Chairman Bert Nordberg said the company "was entering a new phase" and added now was "the appropriate time" to make the management change as the company completed a two-year cost-cutting program.
Vestas has been in financial turmoil for years after an ambitious expansion scheme didn't yield the desires results. Ensuing draconian restructuring endeavors and the loss of its world number-one ranking to General Electric of the US have seen the company incurring hefty losses.
In the April to June quarter, Vestas reported a net loss of 62 million euros ($83 million), compared to just minus eight million euros in the same period a year earlier. Sales dropped by 26 percent to 1.18 billion euros.
The firm has focused on streamlining its production facilities while faced with excessive output capacities in a sluggish global market environment.
Investors welcomed Wednesday's news of the management change, sending Vestas shares temporarily up by 11.2 percent in early trading at an otherwise rather flat Copenhagen Stock Exchange.
hg/hc (AFP, AP)