Published: 05 August 2009 05 August 2009
Hansen Transmissions International NV has announced its Interim Management Statement for the 3 months ended 30 June 2009. The group’s results for the first quarter of the financial year 2010 were significantly affected by lower than expected volumes.
Revenue decreased by 2% in the first quarter of the financial year 2010 compared to the same quarter last year. This decrease is entirely in the sales of wind turbine gearboxes. In the first quarter of the current financial year, the company experienced further reduction of scheduled deliveries of wind turbine gearboxes, with Hansen working with customers to manage their requirements in line with the current operating and credit environment. With revenue approximately stable, the company’s fixed cost absorption rate of overheads deteriorated. The lower profitability for the quarter is due to the lower capacity utilisation. Two new wind gearbox factories were built in India and China, resulting in additional depreciation, fixed operational and general administrative costs. Given the continued impact of the adverse credit environment on the wind turbine industry the company has adjusted its financial year’ guidance – from previously low to moderate revenue growth – to flat revenue for the full financial year 2010. The current market conditions do not support the efficient utilisation of the manufacturing capacity, and the company expects these conditions to continue during the second quarter. The company anticipates that this situation will ease in the second half of this financial year as a result of improved market dynamics.