Vestas Wind Systems A/S sees some relief ahead from the backlog of wind turbine orders that have caused earnings headwinds for one of the industry’s biggest manufacturers.
“We will eat through that backlog that mainly stems from ’20 and ’21,” Chief Executive Officer Henrik Andersen said Thursday during a Bloomberg TV interview, adding that it’ll still take “some quarters” to get through.
The Danish company has faced “incredible headwinds” across the supply chain, from getting components and raw materials to the logistics of managing orders, the CEO said.
Read More: Vestas Warns Wind Turbine Backlog Still Dragging on Earnings
Wind turbine makers were among the industries that bore the brunt of the chaos that followed the start of the Covid-19 pandemic in 2020. Vestas depends on far-flung suppliers for thousands of components that are assembled in manufacturing hubs before its turbines are shipped to customers. Any hiccups in the process means costly delays, which are mostly absorbed by the manufacturer.
--With assistance from Alix Steel and Guy Johnson.
