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Gamesa Shares Slump After Company Cuts Turbines Sales Goal for 2010, 2011
Gamesa Corporacion Tecnologica SA fell to the lowest closing level since 2003 in Madrid trading after the company reduced its forecast for wind turbine sales.
The shares lost 12 percent to 6.698 euros, the biggest drop in almost nine months.
The stock has fallen 42 percent this year as European clients struggled to raise finance to increase wind generating capacity. The company yesterday reported first half-profit fell to 22.5 million euros from 64.7 million euros ($84.4 million) in the year-earlier period.
“There have been certain events totally out of our control that have had a temporary, and let me stress it’s temporary, impact in our industry,” Chairman Jorge Calvet said yesterday on a conference call with investors.
Gamesa aims to sell 2,400 megawatts to 2,500 megawatts of turbines for 2010, down from a February goal of 2,700 to 3,000, the company said. For 2011, the sales volume is targeted at 2,700 megawatts to 3,300 megawatts, down from a goal of more than 3,600 megawatts.
Analysts at Bank of America-Merrill Lynch, Citigroup Inc. and Jefferies lowered their recommendations on the stock.
To contact the reporter on this story: Ben Sills in Madrid at bsills@bloomberg.net
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