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Nordex's 9-mo profit drops 56.7% y/y, lowers 2017 sales forecast

Image by Nordex SE

November 14 (Renewables Now) - Nordex (ETR:NDX1) today reported a 56.7% year-on-year fall in consolidated net profit for the first nine months of 2017 and lowered its full-year sales guidance to “slightly below” the lower end of its previously projected range.

The German wind turbine maker’s bottom line in January-September 2017 declined to EUR 27.9 million (USD 23.8m) from EUR 64.4 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 10.8%, while EBIT dropped by 49.7% on the year. Nordex attributes this development to declining capacity utilisation.

More details are available in the table below.

in EUR (unless otherwise noted) 9-mo 2017 9-mo 2016
Sales 2.32bn 2.34bn
Total revenues 2.36bn 2.36bn
EBITDA 181.9m 203.9m
EBITDA margin 7.8% 8.7%
EBIT 63.3m 125.8m
Consolidated net profit 27.9m 64.4m

When it comes to sales, Nordex is “at a stable high level year-on-year and within the scope of its expectations”. However, it lowered its estimates for 2017 sales to slightly below EUR 3.1 billion, compared to a previously expected range of EUR 3.1 billion-3.3 billion. EBITDA margin is still seen at 7.8-8.2%, before one-off costs related to the “45 by 18” programme.

The order intake in the first nine months plunged to EUR 1.11 billion from EUR 2.17 billion, mainly because of “changed statutory parameters with a negative impact on project lead times and, therefore, on contract awards”. The company noted that the third quarter was particularly weak, as incoming orders during the three-month period fell to EUR 203.4 million from EUR 841 million a year earlier. The main reason is its performance in the German market, where the order intake remained in the single-­digit million euro range.

Over the first nine months of 2017, the company installed a total of 704 wind turbines with a combined capacity of 1,996.9 MW in 14 countries. This compares to 2,024.7 MW in January-September 2016.

Nordex said that it cannot make a specific development forecast for next year because the planning parameters are not sufficiently certain, but expressed certainty that the level of demand on the European core markets will continue to be weak in 2018. As previously announced, the company plans to axe 400 to 500 jobs in Europe by the end of 2017 as part of a cost-cutting programme aimed at achieving savings of EUR 45 million next year. The associated job cuts are already at the preparatory stage, it pointed out.

(EUR 1.0 = USD 1.171)

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