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Company results - Hansen slump amid turbine oversupply

A glut of turbines in the global market appears to have hit gearbox maker Hansen. The Belgian company has announced a disappointing set of third quarter results, reporting a 12% fall in earnings compared to the same quarter last year.

The company, a major supplier to leading turbine manufacturers such as Vestas, Gamesa and Siemens, blamed the results on considerable volatility and challenges in the global wind energy market and predicted the same conditions would persist for the next two quarters.

Last year Windpower Monthly reported that, in the United States, rather than halt production until buyers return to the market, wind turbine manufacturers such as Vestas are stockpiling unsold hardware - with obvious knock-on consequences for their suppliers. Hansen is believed to supply gearboxes for around 50% of Vestas' turbines.

Hansen's revenue between October and December last year fell to EUR136.6 million compared to EUR155.4 million in the same quarter the previous year. This was in spite of the fact that the company's earnings before interest, tax, depreciation and amortisation margins to December were at 9.8%, up from 6.7% in Q2 and 5.2% in Q1.

The company admitted that the revenue decrease was down to a reduction in scheduled deliveries of industrial and wind turbine gearboxes, with customers experiencing difficulties in accessing credit.

But Hansen CEO Ivan Brems remains optimistic for the future. He says: "Although the order book has seen significant rescheduling, the ongoing dialogue with our customers continues to suggest some optimism for improving industry investment from the second half of the 2010 calendar year."

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