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Gamesa reports 31 million euro in net profit in the first nine months of 2013

News International-French

15 Nov 2013

The company attains the high end of its guidance for 2013 and improves profitability: ebit margin of 5.4%, net profit of 31 million euro

Gamesa's results in the first nine months of 2013 reflect the steps taken by the company during the year and reaffirm the 2013 targets set out in the business plan; the company now expects to reach the upper end of its objectives for profitability (EBIT margin ≥5%) and sales (2,000 MWe).

Despite the economic difficulties and the complex situation in the industry, Gamesa reported 31 million euro in net profit in the first nine months of 2013, contrasting with a loss of 67 million in the same period last year. This positive result, coupled with expanding margins, is an advance on the profitability improvement process that commenced in the first quarter, and actually exceeds the guidance for the full year.

In a situation of slowing demand, Gamesa attained 1,655 million euro in revenues between January and September; the lower volume of activity was due to the strategy of controlling working capital and aligning manufacturing to deliveries, plus the lower contribution from the wind farm business.

Sales amounted to 1,402 MWe, in line with the company's guidance for 2013 (1,800 -2,000 MW). Latin America+Southern Cone was the largest single sales destination, accounting for 51% of the total, followed by Europe+Rest of the World (29%) and India (18%). The contribution by the US and China (1% each) declined in the quarter.

Order intake in the third quarter (380 MW) enabled the company to attain the high end of volume guidance for 2013 (2,000 MWe).

Moreover, sales are surging in the fourth quarter, with 470 MW of new firm orders signed in October, on the basis of the new product portfolio and the company's positioning in emerging markets, which raised the order book to 1,750 MW. This acceleration in activity supports rising volume performance in 2014.