LM Wind Power revenues slide

DENMARK: LM Wind Power has blamed continued economic and political headwinds for a 29% slump in revenues last year.

Jobs added at the Grand Forks plant in the US were an exception during a year of cuts

The Danish blade manufacturer had a turnover of EUR 488 million last year, compared with EUR 687 million in 2012. This led to a decline in the company's earnings before interest, taxes, depreciation, and amortization, from EUR 69 million on 2012, to EUR 64 million last year.

This less dramatic decline in earnings is explained by an improved profit margin, pushed up to 13% compared with 10% the year before due to "tough cost containment" and cumulative cuts over the past three years of EUR 89 million.

Capital expenditure of EUR 38 million was EUR 5 million lower than in the previous year.

But this was not enough to stop an increase in the pre-tax loss for the year, from EUR 14 million to EUR 32 million.

LM's reasoning that the decline in sales is down to the market rather than the company's performance seems to be borne out by the fact that it held on to its global market share of 14%, as measured by megawatt installed.

While the company cited the contraction of the global wind market for the first time in 14 years as a factor in its weakened performance, it said that it believes the "fundamentals of the industry remain solid" in the longer term.

Those in the industry who look at LM's preformance as a means to gauge the health of the wind industry will be heartened by the fact that the company's order book at the end of the year was up 30% on the same time a year earlier.