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Nordex suffers wider Q1 loss but expects better second half

German wind turbine manufacturer Nordex made a first-quarter net loss of €14m ($18m) - widening the €1.8m deficit it recorded in the first three months of 2011. Nordex sales rose by 8.3% to €198.3m, while order intake reached €312m compared to €154m in the same quarter last year.

German wind turbine manufacturer Nordex made a first-quarter net loss of 14m ($18m) - widening the 1.8m deficit it recorded in the first three months of 2011.

Nordex sales rose by 8.3% to 198.3m, while order intake reached 312m compared to 154m in the same quarter last year.

However, the company made a loss before interest and tax (Ebit) of 9m in the January-March period.

"Operating profit was burdened by below-average capacity utilisation and lower margins on projects," Nordex says.

The company told investors it has reduced its structural costs by around 10%. It also increased its liquidity and cut its debt to 23.4m from 54m at the end of 2011.

This was thanks to what Nordex calls "systematic working capital management" - including postponing the start of work on projects that are due to be completed later this year.

Nordex says net cash flow from operating activities increased to 34.8m from an outflow of 84.5m in Q1 2011. Free cash flow increased to a positive 25.7m from a negative 94.9m.

An order book of 837m - compared to 402m at the same stage last year - creates "a solid basis" for the company to achieve its full-year sales target of 1-1.1bn, claims Nordex.

"Depending on sales and price... more [truncated due to possible copyright]  

German wind turbine manufacturer Nordex made a first-quarter net loss of €14m ($18m) - widening the €1.8m deficit it recorded in the first three months of 2011.

Nordex sales rose by 8.3% to €198.3m, while order intake reached €312m compared to €154m in the same quarter last year.

However, the company made a loss before interest and tax (Ebit) of €9m in the January-March period.

"Operating profit was burdened by below-average capacity utilisation and lower margins on projects," Nordex says.

The company told investors it has reduced its structural costs by around 10%. It also increased its liquidity and cut its debt to €23.4m from €54m at the end of 2011.

This was thanks to what Nordex calls "systematic working capital management" - including postponing the start of work on projects that are due to be completed later this year.

Nordex says net cash flow from operating activities increased to €34.8m from an outflow of €84.5m in Q1 2011. Free cash flow increased to a positive €25.7m from a negative €94.9m.

An order book of €837m - compared to €402m at the same stage last year - creates "a solid basis" for the company to achieve its full-year sales target of €1-1.1bn, claims Nordex.

"Depending on sales and price trends" Nordex expects to achieve an Ebit margin of between 1% and 3%. "With rising capacity-utilisation and profitability of the projects still to be executed, this profit will be achieved entirely in the second half of the year," the company says.

Nordex last month confirmed it will draw back from plans to enter the offshore wind business to concentrate on its onshore operations.


Source: http://www.rechargenews.com...

MAY 15 2012
http://www.windaction.org/posts/33830-nordex-suffers-wider-q1-loss-but-expects-better-second-half
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