LM Windpower increased its sales by 41% to € 1,059 million, due to higher volumes driven by strong demand, plus the inclusion of Brazil (which was not consolidated for 11.5 months of 2015 during the period when it was a joint venture). EBITDA increased by 69% to € 174 million, due mainly to revenue growth and again the consolidation of Brazil.
The EBITDA margin increased from 13.8% in 2015 to 16.5% in 2016, thanks to tight cost control and operational leverage, with higher volumes over a cost base which is partly fixed. The Group’s net profit increased by € 46 million from € 6 million in 2015 to € 52 million in 2016, thanks to sales growth and improved operational performance. The Group continued to invest strongly in the business with capital expenditure increasing to 142 million, from € 86 million in 2015. This included the completion of a second factory in India, the start of construction of a new plant in Turkey, extensions of existing production facilities, and new moulds and equipment for longer blades. In 2017, LM Wind Power expects sales growth (at constant exchange rates) of at least 15%, thanks to continued strong market demand, capacity expansions in several plants and the start-up of operations in Turkey in H2 2017. LM Wind Power expects to maintain an EBITDA margin of at least 16.5%. On 11 October 2016, LM Group Holding A/S announced that Doughty Hanson, the European private equity firm, had agreed to sell its stakes in LM Wind Power Holding A/S to GE for an enterprise value of € 1.5 billion. The transaction is expected to close in the second quarter of 2017, subject to regulatory approvals.