German Nordex see drop in Q3 net profit, lowers 2011 targets

Nov 14, 2011 - German wind-turbine maker Nordex (ETR:NDX1) said today its net profit fell to EUR 3.4 million (USD 4.7m) in the third quarter of 2011 and cut its full-year targets due to project delays.

For comparison, the company delivered a net profit of EUR 5.6 million a year earlier.

Third-quarter earnings before interest and tax (EBIT) decreased to EUR 9.4 million from EUR 10.2 million. At the same time, revenue remained almost unchanged at EUR 264.9 million versus EUR 264.4 million in the prior-year period.

For the first nine month, Nordex booked a net loss of about EUR 600,000 after a profit of EUR 8.5 million. The performance was affected by heavy structural costs which pushed down EBIT to EUR 11 million from EUR 17.3 million.

The nine-month revenue, however, increased to EUR 668.2 million from EUR 614.2 million driven by a business volume rise in the USA.

The company decreased its full-year revenue target to EUR 920 million from EUR 1 billion and now expects an operating loss before one-off costs of EUR 10 million for 2011. Nordex said financing of wind farm projects became harder in view of the sovereign debt crisis in Europe and rising equity requirements imposed on banks. As a result, some international contracts of Nordex were postponed.

The company expects to return to earnings growth in 2012 when its savings measures will start showing effect.

(EUR 1.0 = USD 1.371)

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