Nordex SE: Withdrawal of guidance for financial year 2020 due to COVID-19 pandemic; improved performance in Q1/2020

Against the background of the worldwide impacts of the continuing COVID-19 pandemic on its business, the management board of Nordex SE (“Nordex”; ISIN DE000A0D6554) has decided today to withdraw the guidance for the current financial year 2020. That guidance was given subject to the pandemic’s effects and published together with the annual financial statements for the financial year 2019 on 24 March 2020.

Nordex’s performance improved substantially in line with expectations in the first quarter of 2020 compared to the same period of the previous year on the back of its high order backlog amounting to EUR 8.4 billion. Based on preliminary figures available to date, sales increased to EUR 964.6 million (Q1/19: EUR 398.9 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to EUR 13.1 million (Q1/19: EUR 3.3 million). As a result, the EBITDA margin is 1.4 percent (Q1/19: 0.8 percent). The increase in sales is particularly due to a substantially greater number of installations in the Projects segment. The figures of the first quarter of 2020 confirm the expected pattern of the company’s performance in 2020.

However, the impacts of the COVID-19 pandemic will affect the results of Nordex from the second quarter of 2020, which effects are not yet quantifiable. Because of the governmental restrictions and measures persisting worldwide for an incalculable period of time, the continuing COVID-19 pandemic has led to material disruptions and changes in significant parts of our operations, including, for example, in procurement and production. In view of the continuing uncertainty regarding the duration and severity of the disruptions and since, therefore, potential further consequences on supply chain, productions and execution of projects (installations) cannot be reliably assessed, the prerequisites for a realistic and robust estimation of Nordex’s performance do no longer exist.

Accordingly, the management board of Nordex has decided today to withdraw the guidance for the financial year 2020. In the current situation and since it is uncertain for how long it continues to exist it is not foreseeable when a new guidance for the current financial year 2020 will be possible.

The final figures and the complete report for the first quarter 2020 will be published on 11 May 2020.