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Nordex continues on growth trajectory in the third quarter and raises sales forecast


In the third quarter of 2015, the Nordex Group recorded strong growth in its business, with sales in this period (1 July – 30 September 2015) climbing by more than 50% to EUR 685.8 million (Q3/2014: EUR 451.2 million). Over the first nine months of 2015, business rose by 41%, with a sales increase to EUR 1.786 billion (9M/2014: EUR 1.267 billion). This performance was particularly underpinned by demand in Europe and South Africa, which accounted for a total of 88% of sales. Nordex generated a further 12% of its business in the Americas. This growth is also reflected in production. Thus, turbine assembly output rose by around 43% to 1,539 MW (9M/2014: 1,076 MW).

At the same time, the group’s operating earnings improved, with earnings before interest and taxes (EBIT) rising by just under 63% to EUR 97.6 million in the first nine months of 2015 (9M/2014: EUR 59.9 million). In the third quarter of 2015, EBIT climbed to EUR 36.1 million (Q3/2014: EUR 22.8 million). Earnings were spurred by economies of scale, with structural costs rising less quickly than sales and the relevant ratio shrinking from 14.8% to 13.7%. Consolidated net profit increased by 62% to EUR 45.4 million in the period under review (9M/2014: EUR 28.0 million) also due to a substantial EUR 2.6 million improvement in net finance expense.

The group’s solid balance sheet structure formed an important basis for growth. Thus, liquidity increased by 17% to EUR 454.4 million (31 December 2014: EUR 388.4 million). With total assets up 19% to EUR 1,478.9 million, Nordex has a equity ratio of 30.3%. The working capital ratio climbed to 1.0% (31 December 2014: -2.3%) as a result of preparations for numerous contracts to be executed in the short term. This still low level was fully in line with budget. As well as this, the group generated positive free cash flow of EUR 18.5 million (9M/2014: EUR 119.8 million).Order intake rose by 57% to EUR 1,964.0 million in the period under review (9M/2014: EUR 1,253.2). Consequently, orders on hand climbed by 32% to just under EUR 1.8 billion as of 30 September 2015 and provide the underpinnings for the expected growth in the first half of 2016.

On the strength of the company’s strong business performance in the past three quarters and the large volume of orders on hand, the Management Board is raising its sales targets for the current year to EUR 2.3 – 2.4 billion (previously EUR 1.9 – 2.1 billion). As Nordex additionally assumes that new business will remain strong in the fourth quarter, it is also lifting its order intake target to EUR 2.3 – 2.4 billion (previously: EUR 2.1 – 2.3 billion). In addition, the operating margin is still expected to increase to 5.0 – 6.0%.“We are currently growing more quickly than the wind power industry as a whole. This is due to our focus on the right markets, products and services. To ensure that we remain on this course of expansion in the long term, we have now decided to substantially strengthen our business by combining our activities with those of Acciona Windpower,” says Nordex CEO Lars Bondo Krogsgaard. Nordex will report on its medium-term outlook and strategic orientationat a capital markets day taking place tomorrow in Frankfurt. The business combination is subject to clearance by the competition authorities.

Anand Gupta Editor - EQ Int'l Media Network


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