US demand helps boost LM Wind Power revenue

DENMARK: LM Wind Power has seen its revenues increase in the first quarter, with growth particularly strong in the US market.

The US was key to increased revenues

The world's largest blade manufacturer brought in EUR 124 million in revenues in the three months to 31 March, an increase of 17% on the same period last year.

However, this is measured against weak performance in 2013 that saw the company cut jobs and close facilities.

LM said that most of the increase in sales came from the Americas region, as the market was "strong on the back of the renewal of the production tax credit [in the US] in 2013". Performance in India was "good", while Europe and China lagged.

The company more than doubled its losses to EUR 15.2 million, which the company said was "in line with internal expectations".

Cost of sales were up to EUR 49.5 million from EUR 39.3 million, a steeper increase than that of revenue. The company said that the main reason for this increase was costs associated with the introduction of new blades to meet "very strong US market demand".

Staff costs also rose to EUR 41.3 million, from EUR 35.5 million a year earlier. This was caused by an increased headcount, again largely as a result of increased activity in the Americas. The company added 170 jobs at its Grand Forks plant in North Dakota last December.

The firm's results were also impacted by losses associated with the setting up of its new facility in Brazil, which started operating in the quarter.