A sell-off in shares of recently merged wind turbine makers highlights the growing speed at which competition in the sector is heating up, raising expectations for more deals in the quest for scale. In the latest sign of the squeeze, Siemens Gamesa last week said it would cut 600 staff, less than a month after it revealed third-quarter operating profit had dwindled by a fifth, partly due to India's shift to auctions from guaranteed tariffs. The wind power industry, growing steadily but still largely reliant on state support, has witnessed a number of large M&A deals in recent years that were triggered by a steep drop in turbine prices, down a quarter since 2010.
Half Year 2017 Siemens Gamesa Renewable Energy SA Earnings Call
Siemens Gamesa has announced it has signed an agreement with DONG Energy for the supply of 94 wind turbines.