Nordex preparing for high installation volume in the second half of the year

The Nordex Group (ISIN: DE000A0D6554) today announced that it generated consolidated sales of EUR 990.8 million (H1 2018: EUR 957.1 million) in the first six months of 2019. Total output, which also includes services provided but not yet shown as sales, such as turbines manufactured, rose sharply from EUR 1,090.0 million to EUR 1,603.5 million. This reflects the preparations being made for the high installation volume expected. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 17.1 million (H1 2018: EUR 38.4 million), corresponding to an EBITDA margin of 1.7 percent (H1 2018: 4.0 percent). This means that business performed in line with the pattern anticipated by the Nordex Group in the first half of the year. Lower construction figures and sales in the Projects segment are attributable to the installation schedules of customer projects. After a weaker first half of 2019, the Company expects a significant rise in activity levels with considerably higher sales in the second half of the year.

Capital expenditure increased and guidance confirmed

Given the dynamic order intake, the Nordex Group is now planning to invest around EUR 160 million for the full year 2019, primarily for additional rotor blade production capacity to support profitable growth in 2020 and beyond. The Company noted the potential to increase its capital expenditure in the event of continued positive momentum in customer demand when presenting its initial estimate of EUR 120 million as part of its annual guidance in March. The Nordex Group confirms its guidance for the current year 2019 and expects to generate consolidated sales of EUR 3.2 to EUR 3.5 billion, an EBITDA margin of between 3.0 and 5.0 percent and a working capital ratio of under 2 percent in relation to sales.

Operating performance

In the Projects segment (excluding services), the Nordex Group recorded incoming orders of 3,038.4 MW in the first six months of 2019 (H1 2018: 2,097.3 MW) worth EUR 2,111.8 million. Of this total, Europe and North America accounted for 37 percent each, Latin America for 21 percent and Australia (Rest of the World region) for 5 percent. At the end of the first half of the year, the Nordex Group had an order book of EUR 5.3 billion in the Projects segment (H1 2018: EUR 3.2 billion) and EUR 2.3 billion in the Service segment (H1 2018: EUR 2.0 billion).

Production output has already increased significantly in light of the sharp rise in worldwide installations planned for the second half of 2019. The Company expanded its turbine assembly production by 52 percent from 1,141 MW in the prior-year period to 1,735 MW in the first six months of this year. The Company also increased the production of rotor blades by 48 percent to 659 units, up from 444 units. The Nordex Group's production is always aligned with the delivery obligations associated with its projects. Production output will continue to rise in the second half of 2019.

In the first six months of 2019, the Nordex Group installed a total of 242 wind turbines in 13 countries with a combined output of 778.1 MW (H1 2018: 934.4 MW), with Europe accounting for around 34.5 percent and non-European markets for 65.5 percent of this total. As a result of lower installation figures, sales in the Projects segment reached EUR 810.7 million in the reporting period (H1 2018: EUR 797.1 million). Sales in the Service segment rose by 12.2 percent to EUR 181.6 million in the first half of the year (H1 2018: EUR 161.8 million) to continue their steady growth.

Key financial figures at a glance

As of 30 June 2019, total assets grew by 22.2 percent compared to the end of 2018, particularly due to the increase in inventories for installations in the second half of the year. The equity ratio was 17.4 percent as of 30 June 2019 (31 December 2018: 22.8 percent). Net debt amounted to EUR 204.1 million (31 December 2018: EUR 32.5 million) and the working capital ratio as a percentage of consolidated sales improved to minus 4.7 percent (31 December 2018: minus 3.8 percent).

Product portfolio expanded with N163/5.X

With the N163/5.X, the Nordex Group unveiled a new 5MW model in the Delta4000 series for areas with low wind speeds. The aim is to offer customers the most efficient, high-performance wind turbines for a wide variety of project and location requirements.

José Luis Blanco, Chief Executive Officer (CEO) of the Nordex Group, said: “We are fully prepared for significantly higher activity levels in the second half of the year and confirm our guidance for 2019. The transformation of our supply chain is also making progress. As already indicated, we will make additional investments in blade production to enable us to meet the higher than originally anticipated demand for the Delta4000 series and to support profitable growth in 2020 and beyond.”

Patxi Landa, Chief Sales Officer (CSO) of the Nordex Group, added: “We are steadily expanding the Delta4000 platform to address a wide range of different requirements around the world. The new N163/5.X model presented today generates up to 20 percent more income at a reduced cost of energy and quicker returns on capital employed in areas with weak wind speeds. This enables our customers to design their wind farms flexibly and optimally with regard to yield, operating life and noise emission requirements.”

The complete interim report for the first half of 2019 is now available on the Nordex Group's website in the Investor Relations section under "Publications" (ir.nordex-online.com). An auditor did not review the Group interim management report and the condensed interim consolidated financial statements.