UPDATE 1-Spain's Gamesa announces 2012 loss of 640 mln euros

Tue Feb 12, 2013 2:19pm EST

Related Topics

* Writedowns worth 584 mln euros

* Staff layoffs, capacity reduction part of plan to 2015

MADRID Feb 12 (Reuters) - Spanish wind turbine maker Gamesa said on Tuesday it made an estimated loss of 640 million euros ($862 million) in 2012 on writedowns for falling demand, capacity cuts and staff layoffs.

The company brought forward its yearly results and announced writedowns in net terms of 584 million euros.

In October, Gamesa, the world's No. 4 wind turbine maker, unveiled a new 2012-2015 strategy to battle overcapacity, rising costs and stiff competition in a market it once dominated alongside Denmark's Vestas.

Part of Tuesday's writedowns was due to the costs of the plan, which had not previously been quantified, and they were also driven by the need to adapt to changes in demand and market regulation, Gamesa said.

Gamesa will cut debt and some 845 jobs in its home country Spain. It has said it will gear sales toward independent energy producers rather than traditional electricity companies that previously made up the bulk of its clients.

Demand would fall in 2013 in much of austerity-wracked Europe, and network restrictions in China and low gas prices in the United States would also affect the year ahead, the company said in a presentation.

Wind turbine sales were 2,119 megawatts in 2012, just slightly above its target of 2,000 megawatts.

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