German Repower lowers forecast for FY 2010/11

(ADPnews) - Dec 22, 2010 - Due to the increase in the number of project delays, German wind turbine maker Repower Systems AG (ETR:RPW) today revised down its full-year forecast for the fiscal 2010/11.

Now the company sees a total output worth between EUR 1.25 billion (USD 1.6bn) and EUR 1.35 billion and an operating margin of 5% to 7% for the full fiscal 2010/11.

Repower's previous forecast was for a total output of between EUR 1.5 billion and EUR 1.6 billion and an operating margin of 7.5% to 8.5%.

In view of the weak market development, Repower only managed to offset the delayed projects to a limited extent by adequate replacement orders in the current financial year, the company said.

In response to the price and margin pressure, Repower's executive board has launched extensive cost reduction measures, including the purchase of components in Asia, especially in China and India. From 2011 on, the company also plans to be manufacturing turbines in Asia and to deliver them to Australia, New Zealand and the USA.

(EUR 1.0 = USD 1.314)

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