LONDON, Jan 24 (Reuters) - Wind turbine maker Clipper Windpower, which has been hit by manufacturing problems, said it will only make modest financial progress in 2008 but it will be a much better year in terms of turbine production.
California-based Clipper (CWPR.L: Quote, Profile, Research), which has suffered setbacks because of problems with the turbine blades and other components, confirmed it will make 311 turbines in 2008 and that its Cedar Rapids plant in Iowa can now make over 400 a year.
Clipper is also developing what would be the largest wind turbine in the world, at 7.5 MW, in northeast England.
While it expects 2008 to be a transitional year, 2009 needs to be transformational because the firm has told analysts it will sell turbines at prices up to 20 percent higher in 2009.
The London-listed company said in Thursday's trading statement it made 137 turbines last year, its first full year of production, enough to power around 50,000 homes.
That was within its management's guidance but slightly ahead of the expectations of some analysts who had set them low after Clipper had disappointed on previous occasions.
In December, Clipper, which is one of the largest companies on London's junior AIM market and worth around 682 million pounds ($1.34 billion) pounds, warned it would miss profit forecasts for 2007.
It announced a further $7-10 million hit from cost overruns on Thursday.
"While further one-off costs are not welcome, we believe the market will take comfort from Clipper's upbeat manufacturing outlook," said Citi analyst Nick Williamson.
Its shares were up 0.8 percent to 630p by 1248 GMT, having fallen around 10 percent since the start of the month.
Clipper, which is seeking funding to construct and manage its own wind farm projects in a partnership with Spanish group Hemeretik called CAPGEN, said on Thursday it had received an order for 155 turbines for delivery by 2011, taking total orders from third parties to 825. (Reporting by Chris Wills, ; Editing by Paul Bolding) (chris.wills@reuters.com; +44 (0)20 7542 5331; Reuters Messaging: chris.wills.reuters.com@reuters.net)) ($1=.5106 Pound)
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