Spanish wind energy company Gamesa reported on Thursday recurring net loss of 49 million euros ($62 million) for the first nine months of the year.
The wind turbine maker said 9 month sales were up 14 percent on the year to 2.3 billion euros.
Indebted Gamesa said in October it would cut staff and slash output as part of a new strategy to ensure the company breaks even in 2013.
Figures are in line with guidance for the year: 100% coverage of wind turbine sales volume for 2012 (Guidance: 2,000 MW) and recurring EBIT margin1 of € 0.1% in the wind turbine division (Guidance 2012: recurring EBIT margin1 to exceed break-even, i.e. > 0%)
- Lower volume of activity, price pressure and regulatory uncertainty in key markets affected the consolidated figures: Recurring EBIT1 (€ -5 million) and recurring consolidated net profit1 (€ -49 million).
- Consolidated sales of € 2.294 billion: wind farm development offset the slowdown in the wind turbine division.
MW sold (wind turbines): 1,627 MW (-17%). LATAM and USA (30% and 24% of total sales, respectively) offset declines in China and Europe. India is the third region in terms of sales, accounting for 13% of the total.
- Firm orders at 30 September: 1,578 MW, for delivery in 2012 and subsequent years, including order intake of 370 MW in 3Q 2012. LATAM and India contributed 34% and 16% of orders, respectively.
- Intense wind farm development and sales: 554 MW in sales agreements signed in 2012 and 254 MW delivered in the first nine months. Delivery of an additional c.600 MW planned for 4Q 2012.
- Operation and maintenance services: Sales increased by 4% in the first nine months (to € 227 million) and by 9% in 3Q 2012. A total of 18,368 MW under O&M contracts.
- Strict control of capital expenditure: € 129 million, to adapt manufacturing structure to the new platforms and develop an industrial presence in India and the first offshore prototype.
On 25 October, Gamesa presented a new Business Plan 2013-2015 to address the situation and emerge stronger, as a global leader in the wind industry, recovering and maintaining profitability, reinforcing the balance sheet (reducing debt), focusing on key markets and growth segments, and providing competitive technological solutions (new 2.5 MW and 5.5 MW platforms).
¹ Recurring figures do not include restructuring costs, which amounted to € 18 million at the end of September 2012