Nordex's earnings decrease in H1, confirms 2017 forecast

Image by Nordex SE

German wind turbine maker Nordex (ETR:NDX1) today reported a 55.7% year-on-year drop in first-half consolidated net profit to EUR 22.6 million (USD 26.8m) and confirmed its guidance for the full year.

The company said in a statement that operating earnings before interest, taxes, depreciation and amortisation (EBITDA) met expectation by reaching EUR 117.5 million for a 14% year-on-year decline. It translated into a group EBITDA margin of 7.8%, down by 1.4 percentage points. This performance was supported by good average margin on projects under construction, Nordex explained.

In January-June 2017, the wind turbine supplier saw its sales go up to EUR 1.5 billion from EUR 1.48 billion, resulting in total revenue of about EUR 1.53 billion, up from EUR 1.5 billion a year back. Just in the second quarter of the year, business volume rose to EUR 852.7 million from EUR 846.9 million.

During the six-month period, the company installed 401 wind turbines totalling 1,128.6 MW in 11 countries for a 3.1% year-on-year decrease. New installations in the second quarter alone were 713 MW, largely stable versus the same period in 2016.

Order intake in January-June 2017 came to EUR 905 million, down from EUR 1.33 billion because of the “more muted new business in Europe”. As of end-June 2017, the company’s order backlog, including service business, amounted to EUR 3.6 billion.

For the full 2017, Nordex continues to expect sales in the range of EUR 3.1 billion to EUR 3.3 billion and an EBITDA margin of 7.8%-8.2%.

(EUR 1.0 = USD 1.184)

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