With fixed costs largely steady together with higher business volumes, gross profit widened by 12 percent over the previous year, rising by around 16 percent in the second quarter to EUR 60.0 million (Q1 2009: EUR 51.8 million). Consequently, earnings before interest and taxes increased by EUR 9.2 million to EUR 9.5 million, compared with the first quarter (previous year: EUR 16.2 million). An EBIT margin of 3.3 percent was recorded in the second quarter (previous year: 3.8%).
At the same time, the cost-of-materials ratio contracted by 70 basis points to 78.6 percent. However, the increase in the staff cost ratio to 10 percent in particular exerted pressure on operating earnings in the first half of the year. On the other hand, other operating expenses were reduced for the second consecutive quarter thanks to the cost-cutting measures taken. Consolidated net profit for the period dropped to EUR 2.3 million (previous year: EUR 13.4 million) primarily as a result of net borrowing costs of EUR 3.3 million and higher tax expense.
The equity ratio was at a high stable level of around 38 percent as of the balance sheet date. In addition, the Company believes that it has sufficient liquidity of EUR 106 million. Nordex took further steps to ensure future liquidity by means of two debt issues of EUR 125 million in total, which are not included in full in the balance sheet as of June 30, 2009. In the period under review, the working capital ratio rose to 20.3 percent (December 31, 2008: 4.8 percent), but had declined slightly towards the end of the period. This was due to high inventories of EUR 391.9 million and weaker new business, which declined by around 39 percent to some EUR 440 million in the first half of 2009 (previous year: EUR 717 million).
Orders in hand amounted to EUR 2.5 billion as of the balancesheet date (December 31, 2008: EUR 3.0 billion) and comprised firm orders worth EUR 791 million and contingent orders (basic agreements including reservation fee) of around EUR 1.7 billion. Thus, on the basis of firm orders and projects completed, Nordex is already assured of reaching its sales target for 2009. Assuming that sales volumes as a whole remain flat across the entire industry, Nordex still anticipates an increase in its own sales to approx. EUR 1.2 billion for the year as a whole, although profitability is likely to be weaker than in the previous year. As a result of higher business volume, the Management Board expects higher earnings in the second half of the year, compared with the first half. The working capital ratio is expected to decline to around 15 percent thanks to reduced inventories by the end of the year.
"With demand for project finance still strong, our customers are still experiencing a certain lack of credit availability. On a positive note, however, the economic stimulus packages have now been implemented and are beginning to take effect. I remain optimistic with respect to new business at the end of this year and the beginning of next year. For this reason, we are investing around EUR 70 million in our operations this year to prepare for greater growth in 2010. Thus, in the transitional year of 2009, we are retaining our core staff and have already decided to go ahead with the construction of production facilities in the United States," said Thomas Richterich, CEO of Nordex AG.
Nordex – More than 23 years of experience in the harnessing of wind energy
Nordex was launched in 1985, before the international demand for wind turbines increased in the first half of the nineties. One of the founding members is today’s Sales Director, Carsten Pedersen. From the outset, Nordex focused on large, powerful turbines. In just two years, the company installed the largest series wind turbine in the world at the time.
Following the principle of small steps, Nordex has succeeded in building reliable machines, which operate with ever-increasing efficiency. Moreover, we have set new standards with several of our innovative products: the entry into the megawatt class in 1995 and the development of the first wind turbine with a capacity of 2.5 megawatts in 2000 – today one of the largest serial produced wind turbines in the world – are just two examples of this.
2007 Opening of new rotor blade production in China / Launch N100
2006 Installation of Germany’s first offshore turbine / Chinese production of multi-megawatt turbine commenced
2005 Launch N90/2500 kW
2003 Installation of the 2,000 Nordex turbine / 1. Offshore turbine installed
2001 Commencement of industrial rotor blade production
2000 Transfer of wind power activities to the new Nordex AG
Completion of the world’s first series 2.5 megawatt wind turbine
1999 Installation of the 1,000th Nordex turbine
1995 Construction of the world’s first series megawatt wind turbine
1992 Establishment of production operations in Germany
1987 Production of the world’s largest series wind turbine (250 kW)
1985 Incorporation of Nordex in Denmark
Today more than 3,735 Nordex wind turbines with a total rated output of more than 4,900 megawatts are already rotating in 34 countries of the world. Nordex are represented with offices and subsidiaries in 18 countries. In this way Nordex are consistently seizing development opportunities in a market of wind power which will continue grow in the course of the next few years.