During a review of the budget for the financial year 2017 and the medium-term target 2018, the Management Board of Nordex SE (ISIN: DE000A0D6554) concluded today that revenue this year is likely to amount to 3.1 to 3.3 billion Euros. Reduced expectations for business in certain core markets are the reasons for a lower revenue expectation in 2017 compared to 2016 and the previous budget.
The EBITDA-margin in 2017 is, however, expected to remain almost stable, compared with the margin of 8.3% expected for 2016. The target range for the operating margin is 7.8% to 8.2%. Nordex is targeting revenue of 3.4 to 3.6 billion Euros in 2018 and an unchanged EBITDA margin compared to the previous year.
Despite lower capacity utilization, the Management Board expects that the EBITDA margin will remain almost stable as stated above. The main basis for this development is the internal programme to reduce the cost of energy (COE), which Nordex is using to counteract the pricing pressure. In addition, Nordex expects synergy benefits from the acquisition of Acciona Windpower and the almost complete lack of non-recurring expenses, which reduced earnings in 2016.
The Management Board will publish preliminary results for 2016 and further details on the outlook for the financial year 2017 and the targets for 2018 on 1 March. The work currently underway to prepare the accounts for the financial year 2016 suggests that financial key figures will be in line with guidance. Guidance was for revenue of 3.35 billion Euros, an EBITDA margin of 8.3% and a working capital ratio of under 5%.
Lars Bondo Krogsgaard, CEO, and Christoph Burkhardt, CFO, will be available to discuss this announcement on a conference call this evening at 5:45 pm CET.