quotedcleantech

First quarter revenues at Hansen Transmissions, for the three months ending June 2010, fell by 21% to EUR 107 million (EUR 136 million). EBITDA fell by 6.4% to EUR 6.7 million, from EUR 7.1 million in the same period last year, despite an improvement in the EBITDA margin to 6.2% from 5.2%. Hansen reported a pretax loss of EUR5.5 million, compared to a loss of EUR2.1 million in the previous year.

Hansen has been negatively affected by changes in the wind market over the past year and more - notably the rise in market share of the Chinese wind tubine manfacturers, which has impacted upon Hansen's customer base. The company claims it has retained its market share within a 'consolidated existing customer base' - but that customer base is facing tough competition from China. And within one of Hansen's market segments - the medium size turbine gearbox market - there is growing direct competition.

Hansen has deferred investments and is diversifying its customer base - adding new customers in China. It is also diversified its product range (adding products for the automotive and aerospace industries) and has addressed its cost base - switching to local sourcing in low cost countries.

Despite declining revenues at the first quarter stage, the company claims it expects full year revenue growth of between 5% and 10%. Management are optimistic that orders this year will be 'back-end loaded'. Management see 'tentative signs of recovery' in the market.

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