Vestas CFO steps down; shares fall 5%

Vestas, a Danish company, announced on Wednesday that its Chief Financial officer Hans Martin Smith would step down at the end of the year. The company has already begun searching for his successor. This news sent its shares down 5,5% in the early trading.

Last month, the wind turbine manufacturer reported a lower-than-expected core profit for its third quarter. It also warned that its profit margin would be likely at the lower end its forecast range for the year due to increased costs and warranty provisions.

Vestas CEO Henrik Andersen stated, "I understand the decision to try something else after 20 years at Vestas. This includes three difficult years as CFO during an extremely volatile and demanding time for the industry and company."

Vestas stated that Smith was able to turn 2022's heavy losses into a profitable year in 2023, and he also oversaw the "positive profitability trajectory" for 2024.

Vestas shares fell 5.5% to 0910 GMT and are now at the bottom of the pan European 600 index. They have fallen 52.5% in the past year.

Douglas Lindahl, DNB analyst, said: "The market seems to be connecting the CFO's resignation with recent profitability issues. It likely views this resignation as a signal that these issues are not fully resolved."

Vestas announced that Senior Vice President Rasmus Gram, who is also the Head of Group Financial Performance, has been appointed interim CFO. This will last until a permanent successor can be found. (Reporting from Louise Breusch Rasmussen and Jesus Calero, in Copenhagen; editing by Terje Sollvik and Bernadettebaum)

(source: Reuters)