Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Nordex Q1 Order Intake Surges; Expects Turnaround, Higher Sales In FY12

Nordex SE (NRDXF.PK) on Monday reported an 84 percent climb in first-quarter order intake and said it will focus on its profitable core business. The German wind turbine manufacturer, which slipped to a loss in fiscal 2011 due to project delays, lower prices and higher expenses, said it expects a 10 to 20 percent increase in sales and a return to profitability in fiscal 2012, citing the solid order intake.

Confirming its fiscal 2011 preliminary results, the company said its full-year consolidated net loss was 49.5 million euros or 0.67 euros per share, compared to prior year's profit of 21.2 million euros or 0.31 euros per share. Sales fell 5.27 percent to 920.8 million euros due to project postponements in Europe and the relatively muted order backlog at the beginning of 2011.

According to the company, its annual loss reflected lower market prices for wind turbines and reduced capacity utilization together with higher structural costs.

Order intake, however, climbed 32.42 percent to 1.11 billion euros. Nordex said it was able to defy market trends, particularly in Europe, recording over 50 percent n increase in new business in this region. Order intake in China plunged 80 percent in the course of the year, causing a 44 percent drop in sales in Asia, while US sales doubled.

The order book amounted to around 700 million euros at the end of 2011, higher than last year's 411 million euros, thus providing a solid basis for the sales growth planned for this year, the company said. During the first quarter of fiscal 2012, order intake rose to 284 million euros from 154 million euros a year ago.

Looking ahead, Nordex projects fiscal 2012 sales will grow to 1 billion to 1.1 billion euros and EBIT margin would be 1 to 3 percent depending on sales volume and the development of turbine prices.

In the medium term, Nordex wants to improve further its profitability, materially helped by the accelerated development of onshore turbines for different wind classes and attractive market segments.

Nordex also said it plans to address the ongoing price pressure in the market by lowering its product costs and developing more efficient turbines.

Further, Nordex said it is continuing negotiations with its potential partner for combining its offshore activities in a joint venture. The talks have been ongoing since summer 2011.

Nordex shares are currently trading at 4.56 euros, up 0.03 euros or 0.57 percent on Frankfurt's Xetra.

Register
To receive FREE breaking news email alerts for Nordex AG and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The terrorists, in this case, have won. In an unprecedented move that may have far-reaching cultural and political effects, Sony Pictures has scrapped the release of "The Interview." The plot of the film, a comedy starring Seth Rogen and James Franco, revolves around a fictional assassination... Here is a list of interesting stocks to watch on December 18. The good news is you can skip this step. There is a next move that can make your life a lot easier. Our research team has already done the groundwork for you. All these stocks listed below and many more have been researched already, and... Oracle Corp. said Wednesday after the markets closed that its second quarter profit fell 2% from last year, hurt mainly by higher income tax expenses even as revenue increased 3%. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.