LM Glasfiber's sales continued its growth trend as they increased their capacity through new factories in key markets as well as through significant manufacturing throughput improvements.?
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In terms of MW, sales rose to 4,950MW from 4,100MW in 2006. The growth in sales however did not translate into increased profits as LM Glasfiber experienced significant growing pains in connection with the ramp-up of its Spanish operations. Sales in 2007 amounted to DKK 4,310 million up from DKK 3,539 million in 2006. Earnings before interest, taxes, depreciation, amortisation and special items (EBITDA) amounted to DKK 559 million against DKK 796 million in 2006. In 2007 however, the company incurred an operating loss (EBIT) amounting to DKK 297 million against an operating profit of DKK 401 million in 2006. Investments, which in 2007 related primarily to new factories in China, India and Spain and additional capacity increases in North America and Spain were DKK 582 million. Total new capacity added in 2007 amounted to approximately 1,000MW. Free cash flow declined to DKK -527 million compared with DKK 217 million in 2006 due mainly to the decrease in operating profit. Financial reserves at the end of the year amounted to DKK 489 million compared with DKK 336 million at 31 December 2006.
