August 26, 2008

Moventas continues its substantial growth driven by wind turbine gears

Moventas, a supplier of wind turbine gears and industrial gears, increased its consolidated net sales in January–June 2008 by 37% to 172 million euros, improved its profitability and employed 231 new employees. The new wind gear factory project proceeds on schedule.

The strong growth of Moventas’ net sales is due primarily to wind turbine gears. In January–June 2008 net sales for the Wind Gears business area grew by 62%, to EUR 102.2 million (comparable 63 million euros in January–June 2007). The sales of the Industrial Gears business area increased by 11% to 72 million euros (65 million euros).

Moventas’ profitability improved. Group EBITDA excluding nonrecurring items was 19.1 million euros, i.e. 11% of the net sales. Comparable EBITDA in January–June 2007 was 12.9 million euros, 10.3% of net sales. Wind Gears business area’s net sales improved considerably. Industrial Gears business area’s profitability was on the same level than in January–June 2007.

The number of personnel increased with 231 employees in the first six months of 2008. At the end of June, the number of employees was 1427.

The new wind gear factory project in Jyväskylä Etelä-Keljo proceeds on schedule and on budget. The production is planned to start at the end of 2008. The full capacity is expected to be achieved at the beginning of 2010. Also the current production facilities in Jyväskylä, Rautpohja are expanding: The first phase of the new ring gear manufacturing line was taken in use in June 2008. The next phase of the Rautpohja production expansion will be in use in October 2008.

The strong growth of the wind energy industry still continued during the first half of 2008. The amount of newly installed wind power capacity is expected to be 26 500 MW in 2008. The demand is estimated to stay high regardless of capacity shortages of material and component suppliers.

“Moventas growth continued strong in January–June 2008,” says President and CEO Ilkka Hakala. “We are proud that, in the midst of our ongoing large investment projects, we are able to meet increasing global demand.”

For further information, please contact:
Moventas Oy, President and CEO Ilkka Hakala, tel. +358 400 824 696
Moventas Oy, Chief Financial Officer Veli Kronqvist, tel. +358 400 838140

Moventas
Moventas is one of the leading experts in mechanical power transmission. The company designs, manufactures and markets mechanical power transmission solutions and services for the process and energy industries. In 2007 Moventas generated net sales of 291 million euros, representing 40% growth from the previous year. The company has over 1300 employees in Finland, Germany, Sweden, Canada, the USA, Singapore and China. European private equity investor IK Investment Partners holds the majority of the shares in Moventas.