Vestas (OTCPK:VWSYF), the world's largest wind turbine manufacturer, reported 2009 results Wednesday.
The good news is that orders are improving, indicating the market is recovering.
Wind turbine stocks underperformed the market in 2009 - although Vestas did well in the first half of the year - fulfilling orders from the previous year - orders dropped off significantly in the second half. Customer pre-payments dropped by half, prices were lower and the credit crunch conspired to make 2009 a very difficult year.
Although revenues were down for 2009, because of operational efficiencies, Vestas showed solid earnings expansion for the year. Management lowered 2010 forecasts due to low order intake, expecting 8-9 GW of orders, which analysts aren't sure they'll achieve. Vestas ended 2009 with €2.2 billion in orders.
Vestas is still the top performer in the wind turbine sector with proven leadership on earnings, managing costs and market share (20.6% as of 2008).