Nordex wind power aims high as profits climb

In the first nine months of the current year, the Nordex Group (ISIN: DE000A0D6554) achieved a 20.5 percent increase in sales to EUR 1,266.6 million (9M 2013: EUR 1,050.7 million).

This performance was particularly driven by a substantial rise in business in the Americas, which more than doubled in volume.

At the same time, sales in the main EMEA region (Europe plus South Africa) continued to rise by nearly nine percent to over EUR 1.0 billion. Globally, new installed capacity expanded by 15.6 percent to 1,068 MW (9M/2013: 924 MW).

Furthermore, Nordex boosted turbine assembly output by over seven percent to 1,076 MW (9M/2013: 1,002 MW), thus more than making up for the effects arising from the start of volume production of generation delta.

Consolidated operating earnings almost doubled to EUR 59.9 million in the first nine months of 2014 (previous year: EUR 31.0 million) and with a margin of 4.7% (previous year: 3.0%) were fully in line with the target range previously published. In the third quarter Nordex achieved an EBIT margin of 5.1%. This was chiefly due to economies of scale. Structural costs before depreciation and amortisation expense rose by 1.6% and thus more slowly than sales. Together with lower net finance expense, consolidated profit grew to EUR 28.0 million (previous year: EUR 5.3 million).

Nordex continued to strengthen its balance sheet as expected, with the sum total of cash and cash equivalents and fixed-term deposits available at short notice rising by EUR 84.0 million to EUR 417.0 million. Net liquidity increased to EUR 263.4 million (31 December 2013: EUR 140.3 million) thanks to strict liquidity management, which is also reflected in a further improvement in the working capital ratio to -3.4% (31 December 2013: 2.2%). Free cash flow rose to EUR 119.8 million (31 December 2013: EUR 23.8 million).

Group capacity utilisation is secured until well into 2015 due to an increase in order intake to EUR 1,253 million (previous year: EUR 1,186 million) and the high backlog of binding contracts. The book-to-bill ratio stood at a positive 1.1 points. The current order backlog has thus risen to EUR 1,354 million as of the reporting date (31 December 2013: EUR 1,259 million).

On the basis of the strong performance in the current year, the Management Board confirms that the outlook for the financial year 2014 is positive overall. Accordingly, sales are expected in a range of EUR 1.65 – 1.75 billion (previously EUR 1.5 – 1.6 billion). Nordex expects the EBIT margin to reach 4.5 – 5.0%, that is to say the top half of the previous target range. In addition, it wants to achieve at least balanced working capital (previously: < 5%) and positive free cash flow. Says Dr. Jürgen Zeschky, CEO of Nordex: “As expected, we have further improved important key performance figures in the course of the year and assume continued good performance in the fourth quarter.”