Nordex expects stable business in 2011 and stronger growth in the following years
• Preliminary figures from the annual financial statements for 2010 confirmed
• Improvement in EBIT margin to 4.0% (3.5%)
• 14% increase in order intake to EUR 836 million
• CEO Richterich: “Signs of further growth are already visible and will be reflected in sales and earnings in 2012”.
Hamburg, March 28, 2011. With the publication of its annual financial statements, the Nordex Group (ISIN: DE000A0D6554) has confirmed the preliminary figures for 2010 which it had released a month ago. According to these, the company largely met its expectations with respect to its business performance. After a strong final quarter, total revenues rose to EUR 1,008 million (2009: EUR 1,144 million). At EUR 972 million (2009: EUR 1,183 million), revenues were slightly lower.
The favorable performance towards the end of the year is also reflected in operating earnings. Thus, the EBIT margin widened to 4.0% in 2010 (2009: 3.5%). Nordex achieved EUR 22.8 million of its EBIT for the year of EUR 40.1 million in the fourth quarter alone (Q4/2009: EUR 18.1 million). Cash flow from operating activities doubled over the previous year, rising to EUR 20.3 million in 2010 (2009: EUR 9.6 million).
Net liquidity contracted to EUR 24.3 million (2009: EUR 59.5 million) chiefly as a result of capital spending of EUR 72 million (2009: EUR 51.1 million). At the same time, cash and cash equivalents remained at a high level of EUR 141.1 million (December 31, 2009: EUR 159.9 million). The equity ratio was also largely stable, coming to 38% as of the balance sheet date (December 31, 2009: 41%). At the same time, total assets climbed from EUR 840 million to EUR 987 million.
New orders rose by 14% in 2010 to EUR 836 million (2009: EUR 737 million), with order intake in the fourth quarter alone contributing EUR 306 million to this positive development. The company assumes that this trend will continue this year with a cyclical pattern emerging as the year progresses. All told, it forecasts a 20 percent increase in order intake in 2011, equivalent to new orders worth around EUR 1 billion. The company expects unchanged revenues for the year. This is materially due to the assumption that order intake will pick up in the second half of 2011 in particular, meaning that it will not be possible for it to be converted into revenues in full in the course of the year.
In order to safeguard its earnings quality, Nordex launched a comprehensive cost-cutting program and enhanced the profitability of its products in 2011. CEO Thomas Richterich explains: “In this way, we are able to largely offset the effects of the price trends emerging in the previous year. Our goal is to stabilize our earnings this year and to create a basis for a medium-term improvement.” Selling prices appear to have stabilized at the beginning of 2011. Nordex plans to boost spending on product development to harness further efficiency gains. Capital expenditure will remain roughly at the previous year’s level.
From 2012 onwards, the company expects the signs of growth which are already becoming visible to be reflected in sales and earnings. This is based on positive expectations for its core markets in Europe and the US as well as the start of serial production of new onshore products in these regions.