08/30/2004
Nordex aims to return to gain territory in 2005
In the first three quarters of the current fiscal year (October 1, 2003 - June 30, 2004) the positive trend in Nordex AG’s new business stabilized further. Order receipts increased by 43 per cent to EUR 169 mn year on year (previous year: EUR 118 mn). Here Nordex has grown above all in international terms. Today some 60 per cent of new orders come from abroad (previous year: 30%) The trend towards large turbines is also continuing. Almost two thirds of new business is accounted for the new Nordex N80/N90 series.
In spite of the larger order intake, at approx. EUR 156 mn revenues were 16 per cent down on the previous year (EUR 186 mn). The main reasons for this development are longer lead times due to the increased international business and the higher amount of big turbines. In addition to this, since July 2003 Nordex only reports a major part of the project revenues after the turbines have been installed in the wind farm.
In the third quarter of fiscal 2003/2004 too, earnings were above projections. After nine months the loss before interest and taxes (EBIT) came to EUR 19.4 mn (previous year: EUR 48.9 mn), equivalent to a year-on-year decrease of losses of around 60 per cent. This improvement in earnings can be attributed above all to the drop in the cost-of-materials ratio from 90 to 79 per cent. Nordex succeeded in cutting personnel expenditure by 17 per cent to EUR 26.1 mn (previous year EUR 31.4 mn), net other operating expenses and income by as much as 42 per cent to EUR 16.7 mn (previous year: EUR 28.6 mn). These cost reductions are the result of an extensive restructuring program that the Group has been implementing since July 2003. The overall target is to achieve an improvement in earnings of EUR 72.5 mn in 2005. To date Nordex has implemented some 74 per cent of these measures and the program is going to be completed by the end of the year.
As a result of high payments for preliminary work on new projects in the past quarter, liquidity is more or less balanced in the current financial year. Free cash flow was minus EUR 0.9 mn (previous year: minus EUR 93.7 mn). This can be attributed principally to the company’s strict working capital management, according to which the production of orders is not commenced until shortly before the installation date. A further prerequisite is the receipt of a deposit of around 20 per cent. However, the need to place orders for ongoing projects resulted in the expected utilization of liquidity in the third quarter.
In the fourth quarter of the current fiscal year Nordex will not be able to fully compensate for the drop in revenues resulting from the strict working capital management. For this reason the company is reducing its revenue projection for fiscal 2003/2004 to EUR 205 mn. Due to the better-than-planned progress made in restructuring in the current fiscal year, Nordex is also reaffirming its earnings forecast of minus EUR 28 mn in spite of a lower volume of business. Nordex plans to return to profit territory in the course of fiscal 2005.
In spite of the larger order intake, at approx. EUR 156 mn revenues were 16 per cent down on the previous year (EUR 186 mn). The main reasons for this development are longer lead times due to the increased international business and the higher amount of big turbines. In addition to this, since July 2003 Nordex only reports a major part of the project revenues after the turbines have been installed in the wind farm.
In the third quarter of fiscal 2003/2004 too, earnings were above projections. After nine months the loss before interest and taxes (EBIT) came to EUR 19.4 mn (previous year: EUR 48.9 mn), equivalent to a year-on-year decrease of losses of around 60 per cent. This improvement in earnings can be attributed above all to the drop in the cost-of-materials ratio from 90 to 79 per cent. Nordex succeeded in cutting personnel expenditure by 17 per cent to EUR 26.1 mn (previous year EUR 31.4 mn), net other operating expenses and income by as much as 42 per cent to EUR 16.7 mn (previous year: EUR 28.6 mn). These cost reductions are the result of an extensive restructuring program that the Group has been implementing since July 2003. The overall target is to achieve an improvement in earnings of EUR 72.5 mn in 2005. To date Nordex has implemented some 74 per cent of these measures and the program is going to be completed by the end of the year.
As a result of high payments for preliminary work on new projects in the past quarter, liquidity is more or less balanced in the current financial year. Free cash flow was minus EUR 0.9 mn (previous year: minus EUR 93.7 mn). This can be attributed principally to the company’s strict working capital management, according to which the production of orders is not commenced until shortly before the installation date. A further prerequisite is the receipt of a deposit of around 20 per cent. However, the need to place orders for ongoing projects resulted in the expected utilization of liquidity in the third quarter.
In the fourth quarter of the current fiscal year Nordex will not be able to fully compensate for the drop in revenues resulting from the strict working capital management. For this reason the company is reducing its revenue projection for fiscal 2003/2004 to EUR 205 mn. Due to the better-than-planned progress made in restructuring in the current fiscal year, Nordex is also reaffirming its earnings forecast of minus EUR 28 mn in spite of a lower volume of business. Nordex plans to return to profit territory in the course of fiscal 2005.
- Source:
- Nordex
- Author:
- Edited by Trevor Sievert, Online editorial journalist
- Email:
- press@windfair.net
- Keywords:
- Nordex, wind turbine, wind energy, wind power
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