Germany's Nordex SE (ETR:NDX1) has revised down its outlook for this year as the war in Ukraine and production restructuring combined with the effects of supply chain disruptions and costs related to the recent cyber attack are taking their toll.
The wind turbine manufacturer said on Tuesday evening that it now expects consolidated sales of between EUR 5.2 billion and EUR 5.7 billion (USD 6.07bn) and an operating (EBITDA) margin of minus 4% to 0%.
The previous guidance was for sales in the range of EUR 5.4 billion to EUR 6.0 billion and an EBITDA margin of plus 1.0% to 3.5% but it did not include the impact of geopolitical events and production reorganisation.
The war in Ukraine will lead to around EUR 200 million in lost sales for Nordex while more working capital write-downs due to projects that are stopped or will not be implemented are also expected. This will dent the group's EBITDA margin by up to 1 percentage point.
Additionally, high volatility and ongoing disruptions in supply chain and logistics, as well as bottlenecks in steel and other critical components are projected to have a negative impact of around 2.0-2.5 percentage points on the EBITDA margin.
A further negative effect on the operating margin of up to 1.5 percentage points will come from one-off costs related to the cessation of production of rotor blades in Germany.
The costs for the recovery of the group's IT systems after the cyber attack at the end of March and the following delays are further burdening the performance. Combined with supply chain disruptions caused by the lockdown in Shanghai and other municipalities in China, this will reduce the EBITDA margin by up to 1 percentage point.
The projections for capital expenditure of about EUR 180 million and a working capital ratio of below minus 7% were affirmed.
The profit warning sent shares in Nordex down more than 10% on Wednesday morning in Frankfurt. At 0917 CET, the stock was trading at EUR 11.21, down 10.71%.
The release of the first-quarter report was delayed to June 20 because of the cyberattack.
(EUR 1 = USD 1.066)
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Wind farm. Author: fantastklywell.
