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Bottom line blues for blue-chip companies

Vestas, SAS, Lundbeck hit by problems

Vestas’ chairman of the board Bent Erik Carlsen, his deputy chairman, and head of finance have been forced to resigned after disastrous 2011 figures showing a bottom-line loss of DKK236m (€166m) for the wind-energy giant. Mr Carlsen said he had been prepared to continue, ‘for the sake of ‘continuity’ but had been forced out by a group of major investors. Questions are now being asked as to whether CEO Ditlev Engel can survive the expected stock-market bloodbath.

SAS posted a wider-than-expected 2011 pre-tax loss of DKK1.42bn mainly due to the collapse of its former Spanair subsidiary which filed for bankruptcy and halted flights in January. The struggling airline hasn’t turned a profit since 2007 and announced major cutbacks three weeks ago that will eliminate 300 administrative jobs in an effort to reduce costs by as much as 5 percent and boost earnings by DKK4bn in 2012 and 2013.

Lundbeck is preparing for a tough two years as its anti-depressive drug Lexapro disappears from the lucrative US market this Spring and the Cipralex patent expires in 2012. Sydbank analyst Søren Løntoft said he expected a ‘drought period’ for the company until new pipeline products hit the market.”You can’t just replace massive sales from one day to the next,” he said. “When a patent expires it can have a drastic effect on the bottom line.”

 
Berlingske no longer provides an English news service. For daily English coverage of Danish news, please see: www.seven59.dk