Siemens Gamesa posts strong new orders as key markets recover
Siemens Gamesa (SGREN.MC), the world’s No.2 maker of wind turbines, on Tuesday reported a strong increase in new orders in the first quarter, helped by a pickup in demand in key markets such as India and the United States.
The news pushed shares in the company 5.8 percent higher to the top of Spain’s key IBEX index .IBEX, a much needed-jolt after a switch to market-based auctions has put immense pressure on equipment makers to rein in on costs and slash prices.
Since the completion of the merger of Siemens’s (SIEGn.DE) wind power business with Gamesa in April last year, shares in Siemens Gamesa have lost 38 percent, raising doubt over whether the tie-up will protect it against the industry’s changes.
Siemens Gamesa has responded by cutting more than a fifth of its jobs, closing production sites and consolidating its product offering, something Chief Executive Markus Tacke said was now paying off.