LONDON (SHARECAST) - More production problems and one-off charges hammered wind turbine group Clipper Windpower's first half, but the group expects full year revenue to be over $800m and to be close to break-even in the second half.
Losses in the six months to June soared to $211m from $78m on revenues of $156m, up from $20m. Increased costs to repair faulty turbines, provisions for inventory obsolescence and higher operating costs caused the higher losses.
Clipper, which also announced the appointment of Doug Pertz as its new chief executive, added the turbine remediation work identified in 2007 is essentially complete.
Full year 2008 revenue is expected to be over $800m with over 300 turbines commissioned. Second half operating results will approach or exceed break even, though 2009's margins will be adversely affected by increasing steel prices. Clipper expects an improvement in 2010 margins through higher pricing and improved commercial terms.
Current chief executive James Dehlsen is to continue with the company as its new chairman.
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