Gamesa triples net profit to reach €288 million in the first nine months of 2008
October, 22, 2008
- Sales increased by 40% to reach €2.89 billion while EBITDA rose by 36% to reach €367 million
- Gamesa has consolidated a 100% operational global supply chain for more than 3,600 MW of capacity, and has maintained its order portfolio above 11,500 MW
- The first nacelle prototype for the new Gamesa G10x 4.5 MW platform has been started up
- Gamesa: a driving force for industrial, technological and economic development in an uncertain environment
Madrid, October 22, 2008. Gamesa Corporación Tecnológica has filed its third quarter results for 2008 this morning. The results confirm the success of its model for sustained and profitable growth, anticipating fulfillment of the strategic objectives set for 2008.
Gamesa’s turnover grew by 40% compared to the first nine months of 2007 to reach €2.89 billion. The outstanding evolution in margins resulting from implementation of continuous improvement plans situated EBITDA at €367 million, a 36% rise over the EBITDA filed in September 2007. The net profit obtained by contributions from both the Wind Turbine Generator and Wind Farm Units rose by 67% to reach €143 million. The additional contribution made by the gains from the sale of the Solar Unit at the beginning of the year placed Gamesa Corporación Tecnológica's net profit at €288 million over the first nine months of 2008, tripling the figures for 2007. These results contributed to a Return on Capital Employed of 15%, while the new sales conditions and improvements in order fulfillment enabled a reduction of Net Financial Debt to 0.7 times EBITDA.
Global supply chain 100% operational and contractual visibility over three years
During the third quarter of 2008, Gamesa managed to consolidate its global supply chain at an annual production rate of 3,600 MW. This means capacity has more than doubled throughout the 2006-2008 Business Plan in tune with the growth in sales. A flexible manufacturing system was set up in China and Europe that adapts to demand and continuously improves production methods and processes. The visibility of Gamesa’s order portfolio currently exceeds 11,500 MW up to 2012.
Between July and September, wind turbine sales exceeding 1,000 MW was maintained for the second successive quarter.
The Wind Turbine Generator Unit sold 2,853 MW, 22% more than in the previous year, during the first nine months of 2008. Ninety per cent of the machines were sold in Gamesa’s three strategic markets: Europe, USA and China. Sales growth was based on international markets, which accounted for 63% in the total megawatts sold.
New generation of Gamesa wind turbines closer to becoming a reality and re-launch of the MADE product
During the third quarter of the year, Gamesa made great strides in the development of its future wind turbine generator, the Gamesa G10x with 4.5 MW of unitary power. The design phase has finalized and component prototypes have been validated in test banks prior to being sent to the field as well as the modular assembly of an energized, tested and transported nacelle. Likewise, construction work on the factory for the new generator’s blades, located in Aoiz, Navarra, has been initiated and the new R&D wind farms in Zaragoza and Navarra are being readied for the machine's in-the-field validation.
It is also worth highlighting the upsurge in MADE product orders in unique wind energy markets. The company has re-launched its commercial activities by entering into a new agreement with the Tunisian company Société Tunisienne de L'Electricité et du Gaz for the supply of 120 MW, thereby allowing it to consolidate its position of leadership as the main wind turbine supplier in Tunisia.
Significant increase in the Wind Farm Unit’s activities
At a moment of the Wind Farm business' strategic reorientation, significant steps have been taken in achieving technical milestones in wind farm promotions, as well as in the construction of wind farms under development. The number of MW in Wind Farms that can be started-up rose by 114%, and the assembly of wind turbines measured by MW increased by 120%. As regards the strategic transaction announced on June 13, the process of setting up joint ventures to promote, develop and operate wind farms in Continental Europe along with Iberdrola Renovables is progressing smoothly. Likewise, progress was made in the third quarter to define the value proposal for the portfolio of wind farms in the USA by drawing up a Business Plan covering the next five years and initiating the phase to identify potential candidates.
Preferential positioning for the 2011 Horizon
The progress made between 2006 and 2008 has placed Gamesa Corporación Tecnológica in an enviable position for the upcoming years. Reference forecasts for these years suggest average growth of 15% for the world's wind energy market. This preferential positioning is based on a portfolio amounting to over 11,500 MW up to 2012, 90% of which has been committed to the world’s leading wind farm operators, a supply chain that is 100% operational and a flexible manufacturing system that adapts to demand with the aid of strategic partners that enable reduced time-to-market and time-to-volume (design, certification and component supply time frames, shortening the customer delivery cycle and reaching mass production more quickly). All of the above at a time in which the company has shown its greatest financial strength.
About Gamesa
Gamesa is a company specializing in sustainable energy technologies, mainly wind power. Gamesa is the market leader in Spain and is positioned among the world’s most important wind turbine generator manufacturers with a market share above 15% in 2007.
Gamesa has installed more the 13,000 MW of its main product lines in 20 countries spread out over four continents. The annual equivalent of this production amounts to more than 2.78 million tons of petroleum (TEP)/year and prevents the emission into the atmosphere of more than 20.6 million tons of CO2/year.
The company has 32 production centers located in Spain, China and the United States with an international workforce of around 7,000 employees.