AMSC Extends China Wind Energy Order
DEVENS, MA. (
) -- Shares of
American Superconductor
(AMSC) - Get Report
rose sharply Monday after its biggest client, Chinese wind power company
Sinovel
, put in a $445 million multi-year order.
Early in Monday's session, American Superconductor shares were gaining 5.4%, or $1.66, to $32.62.
The deal extends an existing agreement that was scheduled to expire in early 2011. The $455 million order covers a period of 30 months.
Sinovel, which will use American Superconductor electrical components to build 1.5 megawatt wind turbines, is the world's third-largest wind turbine manufacturer. China installed more than 13 gigawatts of wind power in 2009.
American Superconductor shares are down 25% year-to-date.
Last week, American Superconductor reported earnings that beat Street estimates.
The company's profit more than tripled to $4.9 million, or 11 cent a share, from $1.3 million, or 3 cents a share, in the first quarter 2009. Excluding one-time items, American Superconductor earnings doubled to 18 cents, with revenue up 43% to $87.6 million, ahead of the Street estimate of 16 cents on $85 million.
American Superconductor also revised its full year guidance last week to $1.15 to $1.20 a share on revenue of $415 to $425 million, compared with earlier guidance of $1.15 and $400 million. The revised was guidance was in line with Wall Street expectations.
--Reported by Eric Rosenbaum in New York.
RELATED STORIES:
>>Energy Winners: Brigham Exploration
Follow TheStreet.com on
and become a fan on
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.









