Gamesa ups 2016 guidance after strong H1

Spanish wind turbine maker Gamesa (BME:GAM) today revised upwards its 2016 forecast for both volume and operating profitability after performing better than expected in the first half.

The company, which in June agreed to merge with the wind power business of Germany’s Siemens (FRA:SIE), now projects that it will register sales of at least 4,000 MWe in 2016 and earnings before interest and tax (EBIT) of at least EUR 430 million (USD 473m). EBIT margin is seen to be equal or greater than 9.5%.

For comparison, its previous forecast was for full-year sales to surpass 3,800 MW and EBIT to exceed EUR 400 million. EBIT margin was expected to be at least 9%.

In January-June 2016, Gamesa’s net profit jumped by 42% on the year to EUR 138 million. Excluding a EUR-13.5-million negative impact from Adwen, its offshore wind joint venture with France’s Areva (EPA:AREVA), the bottom line would have soared even more, by 75.9% to EUR 151 million.

Through control of structural expenses and continuous improvement of variable expenses, the company raised its first-half EBIT by 69.7% to EUR 230 million. EBIT margin went up to 10.5% from 8.1%.

Revenues for the six-month period climbed by 32.8% to EUR 2.19 billion as turbine sales surged by 47.1% to 2,180 MWe. Growth in terms of sales volume was achieved in India, which accounted for a 30% share, in Latin America (29%), Europe (22%) and the US (14%).

Order intake increased by 16% to 1,180 MWe in the second quarter. At the end of June it amounted to 3,228 MW.

(EUR 1.0 = USD 1.100)

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