Gamesa Reports Q1 Profit of 17 Mln

Gamesa ended the first quarter of 2014 with 17 million euros in net profit, more than double the figure of 7 million euros posted in the same quarter last year.

These figures reflect the improvement in profitability, with an EBIT margin of 6% (up from 4.4% in 1Q 2013), and the return to growth in business volume and revenues.

Gamesa’s revenues amounted to €573 million in the first quarter of 2013, i.e. 17% higher than in 1Q 2013. This improvement is attributable to the sharp increase in wind turbine manufacturing (+16%) and O&M services (+21%).

Sales (567 MWe) were in line with the 2014 guidance (2,200 MWe-2,400 MWe), and 27% higher than in 1Q 2013, reaffirming the return to growth that began in the final quarter of 2013.

O&M services revenue expanded by 21.5%, to 104 million euros, and the EBIT margin was 12.8% (+28.8% vs. 1Q 2013). O&M services account for 18% of total group revenues.

This growth in business volume and sales was achieved in a context of rising global demand following the decline during 2013. Sound commercial and product positioning, geographic and customer diversification and a product portfolio focused on meeting market needs resulted in a doubling of order intake in the quarter, to 496 MW.

The company ended the first quarter of 2014 with net profit of 17 million euros (+143%) and EBIT of 34 million euros, i.e. an EBIT margin of 6% (vs. 4.4% in 1Q 2013), in line with guidance for the year (>6%). At constant exchange rates, the EBIT margin would have been 6.6%.

Net financial debt declined by 10% year-on-year to 655 million euros at the end of March 2014. The company continues to focus on strict control of capital expenditure, ensuring a return on investment and a sound balance sheet, thereby reducing its funding needs.

Press Release, May 09, 2014; Image: gamesa