Gamesa maintains margins and enhances production capacity during period of slow activity, obtaining 8 million euro in net profit, Gamesa
Release Date: 2010-05-13
Gamesa's strategy, which focuses on active management of an ambitious efficiency plan, enabled the company to maintain and/or improve its key efficiency and productivity ratios: the EBIT margin in its core business, wind turbine manufacturing, was 6.2%, on par with 1Q09 (6.5%), despite less activity and in line with the company's FY 2010 guidance. The division's EBITDA margin improved 2.5 percentage points to 15.5%.Gamesa's consolidated revenues in 1Q10 amounted to 474 million euro (-43%) as a result of the weak global macroeconomic and financial situation and regulatory changes in 2009 (which put a brake on overall demand for wind turbines), the slowdown in the industry in Spain, the sharp seasonal fluctuations expected this year, and the company's focus on aligning production with customer orders and deliveries.
80% of MWe were sold outside Spain. Firm orders at 31 March 2010 (1,550 MW) already covered 54% of the company's sales projections for the year, compared with 39% at the beginning of the year. Operation and maintenance revenues increased by 50%. The wind farm division's results reflect the company's focus on building out the current backlog, a strategy it will complement in the coming months with a search for partners to realise value.
Despite the lack of regulatory visibility in the short term, primarily in Spain and the US, the industry has strong growth fundamentals in the medium term.
Market estimates by leading industry consultants are for 13% average annual growth in installed wind capacity in the next 3 years (2010-2013).
| Type: | NORMAL |
| Company: | Gamesa |
| Country: | Spain |