Nordex lays the foundation for a stronger second half

A wind turbine manufacturer is reporting strong numbers for the first quarter of the year. Nordex says it has counted an 8.3% increase in sales, to €198.3 million. As expected, business volume accounted for just under 20% of the forecast full-year sales. This cyclical effect is typical of the wind industry. Sales were particularly underpinned by business in Europe, the most important sales region, in which business volume rose by 17.2% to €169.3 million.

Operating profit was burdened by below-average capacity and lower margins on projects, the company says. Earnings before interest and taxes amounted to a loss of €9 million in the first quarter of 2012. At the same time, Nordex lowered its structural costs by some 10%, including a 41.3% reduction in net other operating expenses, it says. The consolidated loss after interest and taxes amounted to €14 million.

In the period under review, Nordex says its liquidity increased to €230.7 million. As a result, the group says it was able to trim its net debt to €23.4 million. Nordex says it largely postponed commencing work on projects which are to be completed later this year. This is also reflected in the substantial net cash flow increase to €34.8 million from operating activities and the only moderate increase in business volumes. Free cash flow increased to €25.7 million.

Order intake was particularly encouraging, rising to €312 million. As a result, the order book grew to €837 million, creating a solid basis for the company to achieve its full-year sales target. The management board of Nordex SE says it confirms forecasts for 2012 of an increase in sales to 1 to €1.1 billion. Depending on sales and price trends, Nordex also expects to achieve an EBIT margin of between 1% and 3%. With rising capacity and profitability of projects still to be executed, this profit will be achieved in the second half of the year, the company says.

Nordex USA
www.nordex-online.com