Gamesa presented its 2012 earnings today, after advancing the key figures on 12 February. The results were in line with the guidance given last July and mark the beginning of a recovery in profitability and value creation, underpinned by the company’s Business Plan 2013-2015.
Gamesa met its 2012 targets in spite of the complex situation in the economy and the industry:
- 2,119 MWe sold (guidance: 2000 MWe)
- EBIT excluding extraordinary items1: 5 million euro, and EBIT margin1: 0.2% (Guidance: EBIT margin> 0%)
- Working capital/group revenues: 16%
- Net financial debt: 495 million euro
To align the company’s balance sheet to market realities and the Business Plan, Gamesa recognised value adjustments amounting to 600 million euro, which had an impact on group net income (-659 million euro). Excluding extraordinary items, net income would have amounted to -59 million euro.
Group revenues amounted to 2,844 million euro (-6.2% with respect to 2011). The Wind Turbine division’s sales (2,119 MWe) were 24% lower than in 2011 due to slowing demand and the strategy to control working capital by aligning manufacturing to deliveries and collections. Latin America and the Southern Cone (32%) are now the main growth driver in this business. The US contributed 20%; Europe and RoW accounted for 27%, China for 10% and India for 12%.
Despite declining demand, firm orders at 2012 year-end (1,657 MW) reflect the positive results of sales diversification and the move into emerging markets; that figure accounts for over 50% of sales guidance for 2013. Latin America (47% of the total) offset the decline in orders from China, India and Europe.
Revenues in the O&M division expanded by 23%, to 344 million euro, and MW under maintenance by 17% (19,111 MW).
Strict control of capital expenditure (190 million euro, i.e. 17% less than in 2011) ensures an appropriate return on investment and a sound balance sheet.
Gamesa had a solid financial position at 2012 year-end: net interest-bearing debt totalled 495 million euro (2.5x EBITDA and complying with debt covenants), after net free cash flow of 690 million euro in 4Q 2012 (216 million euro in the year). Additionally, adapting the balance sheet to the market situation and the business plan provides a healthy equity position (net financial debt/equity: 48%) which, together with 2.2 billion euro in available credit lines, enable the company to undertake its Business Plan, which is proceeding on schedule, without seeking additional funding.
1Consolidated figures, excluding extraordinary items