Nordex pulls 2020 guidance as COVID-19 takes hold

Wind park in Germany. Source: Nordex SE

May 6 (Renewables Now) - German wind turbine maker Nordex (ETR:NDX1) has withdrawn its 2020 guidance amid the uncertainty brought by the COVID-19 pandemic, expecting the crisis to affect its performance from the second quarter.

While the impacts of the coronavirus pandemic are still not quantifiable, the manufacturer explained in an update on Tuesday that various movement restrictions and other globally undertaken measures have materially disrupted its business, bringing changes to significant parts of its operations. Taking into account potential further consequences on the supply chain, production and project execution and the difficulty to assess their extent, providing a financial performance is not possible.

“In the current situation and since it is uncertain for how long it continues to exist it is not foreseeable when a new guidance for the current financial year 2020 will be possible,” Nordex said.

The German manufacturer reported improved preliminary results for the first quarter of 2020, which it said are in line with its expectations. Thanks to increased installations in the Projects segment, revenues in the three months jumped to EUR 964.6 million (USD 1.04bn), more than doubling from EUR 398.9 million a year before. Order backlog reached EUR 8.4 billion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA), meanwhile, increased to EUR 13.1 million from EUR 3.3 million. The respective EBITDA margin climbed to 1.4% from 0.8%. 

Nordex will publish its first-quarter financial report on May 11, 2020.

(EUR 1.0 = USD 1.083)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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