Clipper Windpower misses production targets

Wind turbine maker Clipper Windpower has warned that profits will be below expectations after it missed production targets.

The Aim-listed company, which sells turbines to the US market but is considering investing in offshore UK wind, said it would produce just 125 turbines in 2007, a figure at the lower end of expectations. It said it would only recognise revenue from eight machines. An extra 35 turbines due this year will not be commissioned until 2008 due to work needed on blades. The company plans to spend $15m (£7.6m) reinforcing all blades on existing machines.

Shares in the company closed down just 2pc at 670p after chief executive James Dehlsen reaffirmed teething troubles at its production plant in the US had been sorted out and that monthly production rates were back on track. It expects to make at least 311 turbines in 2008.

Citi analyst Nick Williamson said: "While the 2008 guidance has been reaffirmed, management's track record in this regard is poor, and we would not expect the market to give it the full benefit of the doubt."

The company also announced a new order for 50 turbines in 2009. Mr Dehlsen said he would update the market on the expected total cost of remedial action and production rates in January.