LM Wind Power reports "disappointing" results for 2011

LM Wind Power posted revenue of €707.5 million for 2011, down 2.7% on 2010, and EBITDA of €73.9 million, down 40.9% from the previous year.

2011 was definitely a year of two halves. The full year results for 2011 are disappointing. The first half was in line with expectations but multiple external factors impacted the second half of the year.
Roland Sundén, CEO, LM Wind Power

LM reports that in June the situation was much better. EBITDA was €59.5 million, a 26 % increase on 2010. In China there was an improvement in year on year sales and EBITDA and margins held despite price pressure. In Europe, there was 16% growth in sales, and in India there was major growth with sales and EBITDA also up. In North America, a temporary downturn in orders was compensated by a headcount reduction of 180 employees.

However, in the 2011 third quarter, a number of other factors came into play. The consequences of the European financial crisis became more evident, and in China the government began to temporarily re-balance renewable energy capacity.

"The fundamentals of the wind energy business remained strong and the overall outlook is positive for the medium to long term, with increasing demand for energy globally, continued concern over climate change and security of energy supply," says Roland Sundén, CEO, LM Wind Power.

"Despite these strong trends, in 2011 we once again saw significant volatility, exacerbated by global economic dynamics, the growing Asian economies and the sovereign debt crisis which has caused pervasive economic and political uncertainty in the US and Europe."

The company’s global market share in wind turbine blades was stable versus 2010 at 14%, he adds.

Sundén says LM expects to face difficult market circumstances with overcapacity, slower demand and price pressure, but it will continue to focus on cash management and cost saving initiatives to ensure it we can deliver new blades at competitive prices.