Germany: Nordex continuing to expand with targets for 2015 revised upwards

In the second quarter of 2015, the Nordex Group (ISIN: DE000A0D6554) achieved further strong momentum in its business, with sales climbing by more than 54% to EUR 603.8 million in this period (Q2/2014: EUR 390.9 million). Over the first half of 2015 as a whole, sales rose by 35% and sales came to EUR 1.1 billion during the period (H1/2014: EUR 815.4 million), particularly underpinned by strong demand in the company’s core European region, which contributed 86% of total sales. Nordex generated a further 14% of its business in the Americas. This sharp growth is also reflected in production output. Thus, turbine assembly output rose by around 75% to a record 1,013 MW (H1/2014: 579.1 MW).

At the same time, the group’s operating earnings improved significantly, with earnings before interest and taxes (EBIT) rising by 130% to EUR 36.7 million in the second quarter (Q2/2014: EUR 15.9 million). In the first half of 2015 as a whole, EBIT rose by 66% to EUR 61.5 million (H1/2014: EUR 37.1 million). Earnings were materially boosted by economies of scale. Thus, structural costs rose more slowly than business volume, causing the relevant ratio to shrink from 14.8% to 13.5%.  Consolidated net profit climbed by 123% to EUR 36.9 million in the first half of the year due partly to a EUR 2.6 million improvement in net finance expense.

The company’s balance sheet remained solid and provided a key basis for its growth trajectory. Thus, liquidity increased again by 11.5% to EUR 433.2 million (31 December 2014: EUR 388.4 million). With total assets rising by 13.5% to EUR 1,406.8 million, Nordex has a stable high equity ratio of 30.8%. At -2.1% (31 December 2014: -2.3%), the working capital ratio remained at a good level and is fully in line with expectations. In addition, Nordex again generated positive free cash flow of EUR 41.9 million (H1/2014: EUR 70.0 million).

Order intake rose by 48.9% to EUR 1,353.5 million in the first half of the year (H1/2014: EUR 908.9 million). Consequently, the order backlog climbed by 25.7% to just under EUR 1.8 billion and secures the growth expected in 2015. In this connection it should be noted that the Management Board has now raised its guidance range for sales and now forecasts sales of EUR 2.0 – 2.2 billion (previously EUR 1.9 – 2.1 billion). At the same time, the forecast for order intake has been revised upwards. Accordingly, new business is expected to reach EUR 2.1 – 2.3 billion (previously: EUR 1.8 – 2.0 billion). In addition, Nordex continues to expect the operating margin to widen to 5.0 - 6.0%.

“Nordex continues to grow strongly. At the same time, we are working systematically on improving our earnings. We are very optimistic for the current year and expect sales growth to substantially exceed the forecasts which we issued at the beginning of the year,” said Lars Bondo Krogsgaard, CEO of Nordex SE.