AMSC Extends China Wind Energy Order

American Superconductor signs a $455 million extension to supply electrical parts to its biggest wind turbine client, China's Sinovel.
Author:
Publish date:

DEVENS, MA. (

TheStreet

) -- 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

Twitter

and become a fan on

Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.