CWP Clipper Reg S

 

TIDMCWP 
 
RNS Number : 8344M 
Clipper Windpower PLC 
05 February 2009 
 

Clipper Windpower Plc - Operational and trading update 
 
 
Highlights 
�     2008 Production ramp-up complete: 
o 289 drivetrains produced at Clipper's Cedar Rapids facility 
o 324 turbines installed 
o 282 turbines mechanically completed 
�     Cash balance of $214 million at December 31, 2008, including $5 million 
restricted cash 
�     Production and workforce reduced in early 2009 to align with current 
economic conditions and deferred customer turbine deliveries: 
o Anticipate 15 - 20% decrease in 2009 turbine production compared to 2008 
o Workforce reduced by approximately 11%, or about 90 employees 
o Inventory and working capital levels also being reduced to align with planned 
production 
�     Blade skin remediation efforts expected to be complete in third quarter 
2009 
 
London (UK), Carpinteria, CA (USA) - February 5, 2009. Clipper Windpower Plc 
("Clipper" or "Company") provides an update on its activities. 
Clipper completed the ramp-up of its manufacturing and installation activities 
in the second half of 2008. In line with earlier projections, the Company 
produced 289 drivetrains at its Cedar Rapids, Iowa manufacturing and assembly 
facility, installed 324 turbines and mechanically completed 282 Liberty 2.5 MW 
turbines (705 MW) at customer sites in 2008. Production levels were 
intentionally reduced late in the year in response to the deferral of customer 
orders. 
The Company completed the 2008 fiscal year with an estimated cash balance of 
$214 million, including $5 million in restricted cash. The cash balance was 
impacted by changes of certain customer milestone payments related to deferred 
orders, remediation activity and late grid interconnections at customer sites in 
the second half. These deferred receipts were partially offset by improvements 
in working capital. The audit of Clipper's full year 2008 financial statements 
has not been completed, however, the Company expects to report a loss for the 
second half of 2008. 
The current economic and credit conditions in global markets, coupled with lower 
energy prices, are resulting in reduced capital expenditures by the Company's 
customers and delays in the timing of turbine deliveries. Accordingly, Clipper 
is planning approximately 15 - 20% lower production levels for 2009 than 
2008. In response, the Company is reducing overall operating expenses, component 
purchases and working capital balances to align with the lower production 
levels, including an 11% workforce reduction implemented in January 2009. 
The Company's blade skin remediation program is progressing at customer sites. 
The Company has determined the root cause of the defect to be a faulty 
manufacturing process at a supplier which was corrected in October 2008. 
Approximately 15% of the affected blades have been repaired to date and the 
balance is expected to be completed by the end of the third quarter of 2009. 
Doug Pertz, Chief Executive Officer of Clipper, said "Clipper is responding 
aggressively to the current difficult economic conditions which impact Clipper, 
its customers and the entire wind industry. Working closely with our customers, 
we are proactively managing the impacts of this situation and rescaling the 
business to align with demand.  While we anticipate a challenging year for the 
wind industry, we are encouraged by the new U.S. Administration's focus on 
renewable energy and supportive legislative initiatives.  These policies 
should promote a strong, long-term investment market for wind energy in the 
U.S., and Clipper is well positioned to benefit from this upcoming growth." 
About Clipper Windpower Plc 
Clipper Windpower Plc, www.clipperwind.com, is a company engaged in wind energy 
technology, turbine manufacturing, and wind project development.  The Company 
designs advanced wind turbines, manufactures its 2.5 MW Liberty wind turbine, 
and actively develops wind power generating projects in the Americas and Europe. 
Clipper's primary offices are in the United Kingdom and in California, USA.The 
Company's 330,000 square foot manufacturing and assembly facility, located in 
Cedar Rapids, Iowa, is ISO9001:2000 QMS Certified.   Clipper is a public company 
listed on the London Stock Exchange's Alternative Investment Market (AIM). 
Clipper's ticker symbol is CWP. 
The ordinary shares of Clipper Windpower Plc are traded on the Alternative 
Investment Market of the London Stock Exchange and are not registered under the 
U.S. Securities Act of 1933, as amended.  Such shares may not be offered or sold 
to residents of the United States or to persons acting on their behalf, or to 
other persons who are "United States Persons" within the meaning of Regulation S 
as promulgated under the Securities Act of 1933, unless such shares have been 
registered under the Securities Act or there is an available exemption from 
registration. 
For further information please contact: 
Investors: 
Jenny Matthews 
Investor Relations Director 
+44 (0)20 7820 1078 
 
 
JPMorgan Cazenove (Nominated Adviser and Corporate Broker to Clipper) 
Patrick Magee 
+44 (0)207 588 2828 
 
 
Financial Press: 
Patrick d'Ancona 
M: Communications 
+44 (0)20 7153 1547 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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