Gamesa ended the first quarter of 2013 with € 7 million in attributable profit.
Group revenues amounted to € 491 million in the quarter (-12% vs. 1Q 2012). At 446MW, sales were in line with the 2013 guidance (1,800-2,000MW) but were 13% lower than in 1Q 2012 due to the slowdown in demand, particularly in the US and China, and the strategy of controlling working capital by aligning manufacturing to deliveries and receipts. Latin America and the Southern Cone accounted for 53% and remain as the company's main growth driver. Europe and the rest of the world contributed 20%, India 17%. The contribution by the US (8%) and China (1%) declined in the quarter. New firm orders amounted to 228MW in the first quarter and accounted for 67% of sales guidance for 2013. The reduction in order intake (-67%) reflects the decline in demand in the US (which accounted for 50% of the volume in 1Q 2012) and China, and the slowdown in projects in Europe and India due to regulatory volatility. However, the strategy of commercial diversification and the drive into emerging markets resulted in 278 MW of new orders in April increasing coverage of the guidance to 74%. Revenues in the Operation and Maintenance (O&M) division increased by 18% to € 86 million, while MW under maintenance increased by 12% (19,513MW); accordingly. Gamesa ended the quarter with € 22 million in consolidated EBIT and a 4.4% EBIT margin (vs. -2.4% in 1Q 2012). Despite the lower business volume and decline in sales, profitability ratios improved due to the enhanced project mix, the contribution by O&M, higher productivity, and the reduction in fixed costs (-26%), once 100% of the savings measures under the business plan had been implemented.
