Mon, Jun. 20, 11:48 AM
- Siemens’ (OTCPK:SIEGY +2.7%) $11B wind power turbine merger with Gamesa (OTCPK:GCTAY -1.7%) creates a market giant to rival Vestas Wind Systems (OTCPK:VWDRY) and GE but faces a challenge in harnessing planned savings, according to analysts at Barclays and Morgan Stanley.
- Barclays expects only a fraction of the planned 70M revenue synergies will be achieved, and does not believe the onshore and offshore businesses offer "any sort of synergy potential" in sales, as the two businesses deal with different customers, technology and drivers.
- Siemens and Gamesa have identified €230M in cost cuts within four years, and while the product synergies “are clear,” achieving that target remains a risk, Morgan Stanley analyst Ben Uglow says.
- Nevertheless, Stanley rates Siemens a Buy as "in terms of product overlap, Siemens brings a number one position in offshore turbines [and a] strong offering in developed markets.”
Tue, Feb. 9, 11:49 AM
- Siemens (OTCPK:SIEGY +0.2%) is close to a deal to combine its wind business with Gamesa (OTCPK:GCTAF +7.6%), which would create world's largest wind turbine maker, Bloomberg reports.
- SIemens is the global leader in wind turbines designed for use offshore, while Gamesa specializes in onshore wind; together, the combined companies would have ~15% of the global wind market, exceeding Vestas Wind's (OTCPK:VWDRY) 10% share and GE’s 11%.
- Siemens also is holding talks about buying Iberdrola’s (OTCPK:IBDRY -0.6%) 20% in Gamesa, according to the report.
May 6, 2015, 12:59 PM
- Vestas Wind Systems (OTCPK:VWDRY +4.2%) is higher after reporting better than expected Q1 results and raising its FY 2015 profit target amid a record wind turbine and service order backlog of €15B.
- Vestas reported Q1 net income of €56M ($63M), almost double the €29.7M average analysts had expected, and a 13% increase in revenue from its services business even though the year-ago period was fattened with rare contracts maintaining machines offshore.
- Q1 EBIT margin before special items was a company record 5.2%, up 2.1 percentage points compared to Q1 2014, and return on invested capital hit a record 44%.
- Vestas says it now expects at least €7.5B in revenues this year, up from a previous forecast of at least €6.5B, with an operating margin of a least 8.5% from an earlier expectation of 7%; while analysts had expected higher forecasts, they were still surprised by the extent of the upgrades.
Nov. 7, 2014, 9:56 AM
- Vestas Wind Systems (OTCPK:VWDRY) +16% in Copenhagen trading after the wind turbine manufacturer swung to a Q3 profit that beat expectations, and raised its full-year earnings forecast (.pdf).
- Q3 free cash flow was €105M vs. €56M in the year-ago period, EBITDA more than doubled to 163M from €67M a year ago, and the operating margin before special items was 9% vs. 4.6% in the same quarter last year.
- Vestas now expects FY 2014 sales of €6.4B-€7B from an earlier forecast of €6B, raises its operating margin outlook to 7%-8% from 6% earlier, and sees €400M-€700M in full-year free cash flow from a previous forecast of €300M.
- While Q3 order intake fell 24% in the period to 1,170 MW, mostly due to fewer U.S. orders, the order book for the first nine months of the year has increased 12%.
Jan. 6, 2014, 2:15 PM
- Vestas Wind Systems (VWDRY +6%) raises its cash flow target for the third time in a year, as the wind turbine manufacturer shows further signs that its recovery is taking hold.
- Vestas says its free cash flow last year would total ~€1B vs. a previous forecast of €500M-€700M and a year ago expecting cash flow just above zero.
- Vestas enjoyed one of its busiest-ever months for orders in December as it unveiled a number of large U.S. deals involving more than 400 turbines from the likes of Enel Green Power and First Wind.
Dec. 18, 2013, 11:19 AM
- Vestas Wind Systems (VWDRY +4.1%) wins a 350 MW wind turbine order from Enel Green Power (ELPSY) in Oklahoma, its fourth U.S. deal in just over three months following eight months of inactivity.
- Vestas will supply 175 of its V100 2 MW turbines to Enel's U.S. unit and may add another 636 MW.
- A renewed U.S. tax credit, which pays wind-farm owners 2.3 cents for every KW-hour of power they produce, now applies to all projects that begin construction before the end of 2013; earlier this week, Siemens reported a 1,050 MW order from Warren Buffett's MidAmerican Energy.
Dec. 17, 2013, 3:24 PM
- Broadwind Energy (BWEN +14.4%) is set to be a major beneficiary of Siemens $1B-plus power contract with MidAmerican Energy, supplying the towers for the 448 wind turbines that will equip five wind power projects in Iowa.
- The move by Warren Buffett’s utility company shows how a drop in equipment costs is making renewable energy more competitive with power from fossil fuels - a boost for suppliers including BWEN, Siemens (SI), GE and Vestas (VWDRY, VWSYF), and a threat to coal miners (KOL).
- MidAmerican expects to close some coal-powered plants in 2015 as the price of wind power (FAN) continues to slide, an exec says.
Oct. 9, 2013, 11:58 AM
- Shares in Danish wind turbine maker Vestas (VWDRY.PK -3.9%) tumble as investors reflect their disappointment at the sale of six manufacturing units for just €1, implying a writedown of €50M on the assets.
- Vestas says it made the sale "because we operate in a volatile market with steep ups and downs, and we realised that fixed costs were too high, so we needed to outsource non-core activities and focus on core competencies."
Nov. 27, 2012, 10:56 AM
Talks between Vestas (VWDRY.PK) and Mitsubishi Heavy Industries to build the biggest offshore wind turbine are bolstered by securing €900M in financing yesterday through 2015. Vestas’ negotiating power is now “slightly improved... It doesn’t increase the financial flexibility of Vestas, but it removes the short-term default risk." Shares -9.5% after jumping 22% yesterday.| Nov. 27, 2012, 10:56 AM
Aug. 28, 2012, 11:52 AMShares in Vestas Wind Systems (VWDRY.PK +18.2%) surge after the wind-turbine maker confirms it’s in talks with Mitsubishi Heavy Industries over a strategic pact. Analysts believe any partnership between the two companies may emerge as a joint offshore-wind business which may erase lingering fears over Vestas’ cash position. | Aug. 28, 2012, 11:52 AM
Jan. 2, 2012, 7:40 AM
Owners (or prospective owners) of beleaguered solar energy companies, it might be time to prepare for more of this action in 2012: China's LDK Solar (LDK) offers to buy Germany's Sunways for €1.90/share, a near 30% premium to Friday's close. Sunways lost 63% in 2011, weighed down like most by production overcapacity coming out of Asia.| Jan. 2, 2012, 7:40 AM | 2 Comments