January 30, 2018 / 9:25 AM / 2 years ago

Siemens Gamesa posts strong order intake, shares up

* Q1 turbine order intake up 29 pct

* Price disruption had reduced dynamic in Q1 - CEO

* Shares up 5.4 pct, leading Spain’s IBEX index (Recasts, adds CEO comments, details on results)

FRANKFURT, Jan 30 (Reuters) - Siemens Gamesa, the world’s second-largest maker of wind turbines after Denmark’s Vestas, on Tuesday reported a 29-percent rise in order intake in the first quarter, adding equipment prices were no longer in free fall.

Wind turbine makers have been hit hard by an industry switch to competitive auctions and away from generous government subsidies, putting immense pressure on manufacturers to slash costs and lower prices to remain relevant.

“The disruption in Q1 ... had a significantly reduced dynamic,” Chief Executive Markus Tacke told journalists during a conference call, pushing the group’s shares up 5.4 percent to the top of Spain’s main IBEX index.

In the first quarter of its financial year, which starts in October, Siemens Gamesa’s order intake stood at 2.784 gigawatts, up 29 percent from the same period a year earlier. Its sales in the period fell 23 percent to 2.1 billion euros ($2.6 billion).

Siemens Gamesa, in which Germany’s Siemens retains a 59 percent stake after merging its wind business with that of Spain’s Gamesa last year, has already slashed jobs and streamlined its product offering to respond to the crisis.

The company said it was intensively working on additional cost cuts across its organisation, adding it would disclose further details at its capital market day scheduled for Feb. 15. ($1 = 0.8079 euros) (Reporting by Christoph Steitz; Editing by Maria Sheahan)

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