Gamesa Reports 301 Million Euro Profit In 2016

Zamudio, Spain - Spanish wind turbine manufacturer Gamesa obtained 301 million Euro in net profit in 2016.

This means a 77 percent increase year-on-year, due to higher sales (record revenues of 4,612 million Euro, +31.6 percent) and rising profitability, with a 10.4 percent Ebit margin. The company also concluded 2016 with a record order book, having taken in 4,687 MW in orders in the year, and cash flow (423 million Euro).

These results met - and exceeded - the objectives set in the Business Plan 2015-2017 one year ahead of schedule, and also beat the guidance of 2016, which had already been revised upwards twice, in July and November.

Prospects for 2017: commitment to value creation In addition to surpassing its financial goals for the year, during 2016 Gamesa made strong progress with its long-term strategy by reaching an agreement to merge with Siemens Wind Power to create a world leader in the wind power industry. The deal is still scheduled for completion in April. Based on year-end estimates, the merged company will be the largest in the market in terms of order backlog (20,900 million Euro), and revenues (about 11,000 million Euro combined). Its adjusted Ebit will be about 1,058 million Euro, with an Ebit margin of 9.6 percent.

Meanwhile, Gamesa continues to advance with its business plan, having set new goals for 2017: the company expects around 15 percent growth in both volume (the commitment is to reach 5,000 MW) and operating profit: 550 million Euro in Ebit and an Ebit margin of 10-11 percent.

Source: IWR Online, Feb 02 2017