Nordex points to stronger second half of year

The German Nordex Group has announced an 8.3 percent increase in sales in the first quarter of 2012 (€198.3 million compared with €183.1 m last year), but operating profit was restrained by below-average capacity utilisation and lower margins on projects.

Nordex sales were underpinned by business in Europe, in which business volume rose by 17.2 percent to €169.3 million.

However, below-average capacity utilisation and lower margins on projects meant that earnings before interest and taxes (EBIT) represented a loss of €9.0 million in the first quarter of 2012.

Nordex reports that it has lowered its structural costs by 10 percent, including a 41.3 percent reduction in net and other operating expenses.

A consolidated loss after interest and taxes therefore amounted to €14 million during the first quarter of 2012, compared to a loss of €1.8 million during the same period last year.

The company’s liquidity increased to €230.7 m compared to €212 m at the end of December 2011. This has enabled it to trim its net debt to €23.4 m, mostly thanks to systematic working capital management. As a result Nordex has postponed a number of projects due to be completed later in the year.

Despite the problems, Nordex reports that order intake has been "particularly encouraging" - increasing to €312 m compared to the first quarter of 2011 (€154 m); thereby increasing the company’s order book to €837 m - compared to €402 m in the same period last year.

This has created a firm foundation for the company to achieve its full year sales target, according to the company, and the Nordex board has forecast an increase in sales to €1.0 to €1.1 billion. Nordex says it expects to achieve an EBIT margin of between 1 and 3 percent. Rising capacity utilisation and profitability of projects still to be completed means that this profit will largely be achieved in the second half of the year.

Share this article

More services


This article is featured in:
Wind power