Gamesa to Double Profit Helped by New Turbine for U.S., Europe

(Bloomberg) — Gamesa Corp. Tecnologica SA, Spain’s biggest
wind-turbine maker, plans to double profit by 2017 as it
unveiled a new turbine to help expand in mature markets.

The 3.3-megawatt turbine will help Gamesa grow in markets
like the U.S. and Europe where it previously struggled, Xabier Etxeberria, executive director-general, said on a conference
call Tuesday. That will help in the goal of raising earnings
before interest and taxes to 362 million euros ($406 million)
the year after next, from about 180 million euros in 2014.

“These are important markets and they’re markets where
until now Gamesa has had its problems to have a more significant
commercial presence because of the non-existence of a 3-megawatt
machine,” Exteberria said. Europe accounted for 24 percent of
installed capacity last year and the U.S. 9 percent, he said.

Gamesa plans double-digit sales growth to 3,500-3,800
megawatts by 2017. It’s studying opportunities in solar and off-grid energy, where it has engineering and building knowledge.
The company’s also expanding in offshore wind after starting a
venture with Areva SA in March to develop an 8-megawatt turbine.

Weaker European and U.S. demand forced turbine makers such
as Gamesa to cut staff and close offices in 2012 to stem losses.
Its three-year plan to 2015 has been implemented a year early.

“It’s no longer a survival plan, it is a growth plan,”
Executive Chairman Ignacio Martin San Vicente said on the call.
“Things have significantly improved since 2012.” Gamesa will
fortify its position in markets including India, China, Mexico
and Brazil where wind plants provide access to energy quickly.

To contact the reporter on this story:
Louise Downing in London at
ldowning4@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Tony Barrett, Randall Hackley

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