In a new financial report, Gamesa reveals it is on track to reach the upper end of its objectives for profitability and sales this year.
Gamesa says that despite economic difficulties and the complex situation in the industry, the company recorded EUR 31 million in net profit in the first nine months of 2013, contrasting with a loss of EUR 67 million in the same period last year. The company says the positive results show that its profitability-improvement plan, commenced in the first quarter, is proving successful.
Sales were down during the period, but Gamesa says the lower volume of activity is in line with its strategy of controlling working capital and aligning manufacturing to deliveries, plus the lower contribution from the wind farm business. Gamesa attained EUR 1.65 billion in revenues between January and September – down 20% year-over-year. Sales amounted to 1,402 MW, a 14% decline.
Nonetheless, company adds that 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. Operating and maintenance services contributed 16% of total revenues.
Gamesa obtained EUR 90 million in EBIT in the first nine months of 2013, providing an EBIT margin of 5.4%, which exceeds the 0.2% margin attained in 2012 and is above the guidance range for the year (3%-5%).
The company says it reduced net financial debt by 28% to EUR 765 million at the end of September.