April 26 (Bloomberg) -- Xinjiang Goldwind Science & Technology Co., China’s biggest maker of wind turbines, said first-quarter profit rose more than fivefold as cost cuts countered a decline in sales.
Net income jumped to 32.5 million yuan ($5.3 million) from 6.18 million yuan a year earlier, Goldwind said yesterday in a Hong Kong stock exchange filing. Sales dropped 44 percent to 951 million yuan amid a weaker “market environment.”
Wind-turbine manufacturers have seen revenue decline as increased competition drives prices down. Goldwind and Danish peer Vestas Wind Systems A/S are among companies to reduce expenses to weather slowing growth in the industry.
Cost cuts helped more than triple profit from operations in the quarter and will underpin a forecast jump in first-half earnings of as much as 50 percent, Urumqi-based Goldwind said.
Orders under contract totaled 4,576 megawatts at the end of March, of which 404 megawatts were overseas, the company said.
Goldwind rose 0.7 percent to close at HK$4.50 in Hong Kong trading today before the earnings were announced.
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