Nordex guides for sales jump in 2020, cautiously

Nordex (ETR:NDX1) today confirmed the preliminary 2019 financial results it reported recently and made a forecast for 2020 with the reservation that it depends on the company’s ability to process its order book without any material interruptions.

The German wind turbine manufacturer guided for consolidated sales of between EUR 4.2 billion (USD 4.55bn) and EUR 4.8 billion, as well as earnings before interest, taxes, depreciation and amortisation (EBITDA) within the range of EUR 160 million-240 million. The company believes that the second half of the year will see higher sales than the first half.

Nordex, though, stressed that its 2020 business performance is subject to significant uncertainty due to the coronavirus COVID-19 pandemic. “It is still too early to conclusively assess the consequences of this new, complex and continuously changing situation,” the company stated, adding that it may adjust its projections if significant disruptions occur.

The wind turbine maker plans to invest at least EUR 140 million this year, but the final amount depends on the market situation. It expects that at the end of the year its working capital ratio as a percentage of consolidated sales will be in negative territory at below zero percent.

Nordex noted that it started the year with a “well-filled” wind turbine order book, which jumped by 43% on the year to EUR 5.5 billion.

In 2019, the company installed 938 turbines with a combined capacity of 3.1 GW in 21 countries, compared to 828 units totalling 2.5 GW in 2018. It serviced more than 7,760 turbines around the world with a total output of 19.6 GW.

In the service segment, the order book increased by 14.4% to EUR 2.54 billion, compared to about EUR 2.22 billion as at the end of 2018.

(EUR 1.0 = USD 1.084)

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