Profits up sharply at Gamesa

Spain's Gamesa, one of the world's top wind turbine manufacturers, Thursday reported first-half net profits surged 29 percent to 29 million euros, with strong growth in India and Latin America in particular. Revenues surged 26 percent to 1.297 billion euros ($1.866 billion) while earnings before interest, taxes, depreciation and amortisation (EBITDA) -- a key measure of profitability -- were up 17 percent at 153 million euros. It noted that 100 percent of sales during the period were outside Spain. "Progress in internationalisation together with efficiency and sustained performance in all business lines placed Gamesa in a strong growth position in the first half of 2011, with results in line with annual guidance in terms of volume, profitability and debt." In India, sales increased 2.4-fold, accounting for 17 percent of the total and placing it among the top three wind energy companies in the country. Gamesa announced in May it had won a $2 billion agreement with Caparo Energy India Ltd to deliver wind turbines with a combined capacity of 2,000 MW over the next five years. Sales were also up four-fold Latin America, making up 19 percent of the total. "China and the US are also significant markets, accounting for 20 percent and 15 percent, respectively," it said. Gamesa shares gained 1.59 percent to 5.23 euros on the Madrid stock market after the news.