Gamesa recovers pace of order intake in Q3 2010 and maintains profitability in a complex context for the economy and the industry, Gamesa

Release Date: 2010-11-11

Madrid/Zamudio, 11 November 2010. Gamesa landed 1,186 MW of new orders in the third quarter of 2010, more than five times the intake in the third quarter of 2009 and three times the intake in the second quarter of 2010. Sales coverage for 2010 (2,290 MW of firm orders) was 93% at the end of September. By November 11, 2010, Gamesa had met 100% of its guidance for the year, with orders of 2,450 MW.
Together with the recovery in the pace of order intake, driven by a new sales strategy and the opening of 10 new markets in one year, Gamesa has continued to focus on maintaining profitability and a solid financial position, enabling it to maintain guidance for 2010: the EBIT margin from the wind turbine business was 5.4%, the wind turbine working capital/sales ratio was 19%, and net consolidated debt totalled 297 million euro (after reducing it by 420 million euro), leading to a net debt/EBITDA ratio of 1.0.

Consolidated revenues amounted to 1,786 million euro, attributable to less activity against a complex macroeconomic and regulatory backdrop, sharp seasonal fluctuations expected this year, and the company's policy of aligning production with customer orders and delivery schedules.

The Cost Improvement Plan saved close to 100 million euro in M9 2010, partially offsetting price pressure, and enabling the wind turbine division to obtain an EBITDA margin of 12.8% and an EBIT margin of 5.4%, at the high end of guidance for 2010 (4.5%-5.5%), despite the lower absorption of structural costs due to the lower level of activity.

The positive trend was visible in the wind farm development and sale division, which reported key figures in positive territory (EBIT of 4 million euro at September 2010).

Gamesa's consolidated EBITDA amounted to 201 million euro (-30%), EBIT to 75 million euro (-46%) and net profit to 25 million euro (-71%) in the period.
Type: NORMAL
Company: Gamesa
Country: Spain
 
This website requires Flash Player 9 or later. If you can not view this site you probably need to update your system with this plug-in for your browser.