Warranty provisions
In 2011, Vestas expects to make warranty provisions of less than 3 per cent of annual revenue. Provisions are made for all costs associated with turbine repairs, and any reimbursement is not offset unless a written agreement has been made with the supplier to that effect.Warranty provisions of EUR 27m in the first quarter, equivalent to 2.5 per cent of revenue, cover possible costs for remedy and other costs in accordance with specific agreements. Provisions are based on estimates, and actual costs may deviate substantially from such estimates. Changes in equity Vestas’ equity amounted to EUR 2,677m at 31 March 2011, an increase of EUR 160m on 31 March 2010.
