Nordex eyes €2bn wind power sales by 2017

The Nordex Group (ISIN: DE000A0D6554) has set itself new financial targets: as announced by the Management Board at its Capital Markets Day in Hamburg, the Group plans to achieve a sales level of EUR 2 bn by 2017 (2013: EUR 1.4 bn) while substantially improving its operating result to an EBIT margin of 7-8 percent (2013: 3.0%).

“We will focus strongly on improving profitability during the next period. In the course of the realignment process over the last few years Nordex grew dramatically, achieved the level of sales required for the turnaround and is now profitable. We intend to build on this success by optimising our internal processes to bring them in line with our business profile,” says Dr. Jürgen Zeschky, CEO of Nordex SE.

Since the new Management Board under CEO Zeschky took the helm at Nordex in spring 2012 the Group has increased revenues by more than 55 percent to EUR 1.4 bn and turned into a profitable company. In the period up to 2017 Nordex plans to further enhance its new successful position as a specialist provider of complex solutions, concentrating on some 20 international markets. Jürgen Zeschky: “The aim of our products and services is always to create value for our customers. Of course, first and foremost this means more efficient products. But there is also plenty of potential for increasing earnings in the design of a wind farm.” With this in mind, Nordex aims to reduce the levelized cost of energy from wind by between 12 and 15 percent and plans to offer more customised solutions in the so-called ´micrositing´ of wind farms.

“The reorganisation and sales growth of as much as 30% in some years put a great deal of stress on the organisation. We have competitive products and a successful sales and service strategy. We will now focus on adapting our business processes so that we can become even more profitable,” says Dr. Zeschky. He is also thinking of a process infrastructure that is geared to project business and that takes account of the fact that Nordex is not a conventional manufacturer of standardised series products. Dr. Zeschky: “Our approach is not to produce 600 to 700 turbines per year but to complete around 100 projects successfully. Behind every project, there is a customer, who we support professionally in the construction of their wind farm.”

In spite of the moderate growth path Nordex intends to follow in the coming years, the Management Board stresses that the Group will outperform the market in its sales regions. Average annual growth is set to hit the 8 percent mark, supported by increased market share in the core markets, new markets and organic growth in the service business.