Profit and loss

Danish wind-turbine manufacturer

has announced a 70 per cent increase in first-quarter profits but added that it has been forced to cut 1,900 staff following weak demand in northern Europe.

The group said that first-quarter profits after tax were up to €56m (£74m) and revenue in the period reached €1.1bn - a 58 per cent increase on the previous year. The first quarter saw a 21 per cent increase in shipped turbines and a 29 per cent increase in shipped wind-power systems with an aggregate capacity of 885MW.

Order backlog amounted to €4.9bn at the end of March 2009, with Vestas continuing to expand its operations in the US and China. However, a drop in demand in northern Europe has led the group to cut staff and reduce investment in property, plant and equipment by approximately €200m.

In a statement, the company said: ‘Vestas no longer believes that the northern European markets in the years ahead will be able to absorb the capacity released, as a result of the US expansion; Vestas is unfortunately compelled to reduce production capacity in northern Europe.’