Nordex SE: Strong growth and return to profit in 2013

Hamburg, 28 February 2014 - On the basis of its provisional consolidated financial statements for 2013, sales of the Nordex Group (ISIN: DE000A0D6554) rose by around 33 percent to EUR 1,429.3 million (previous year: EUR 1,075.3 million), thus reaching the upper end of the Management Board’s guidance range. Operating earnings also matched the Company’s expectations, with earnings before interest and taxes (EBIT) amounting to EUR 44.3 million, equivalent to an EBIT margin of 3.0 percent. In the previous year, Nordex had sustained an operating loss of EUR 61.1 million on account of substantial non-recurring expenses arising from the restructuring of group operations in the United States and China.

The sharp increase in sales was due to the Nordex Group’s increasingly stronger EMEA business, where sales surged by over 50 percent to EUR 1,306 million (2012: EUR 869 million). As a result, Nordex was able to the buck market trend: new installed capacity contracted by almost six percent in the European wind power industry in 2013. By contrast, Nordex’s performance in America reflected the general downward trend afflicting the industry particularly in the United States. On the other hand, the Asian business recovered on a low level. Nordex recorded combined sales of EUR 123.0 million (2012: EUR 206.4 million) in these two regions.

The earnings turnaround was driven by the execution of more profitable projects together with various cost-cutting measures. For one thing, these concerned reductions in the Group’s structural expense in the wake of the reorientation implemented in 2013. For another, Nordex reduced its product costs, widening its gross margin to 22.6 percent (2012: 21.4%). Together with the strong top-line growth, restructuring also led to full capacity utilisation in turbine assembly in Germany among other benefits.

Further major successes in 2013 included the strengthening of the balance sheet. Thus, Nordex was able to further reduce its capital commitment, with the working capital ratio contracting to 2.2 percent (2012: 8.7%).  Cash flow from operating activities amounted to EUR 98.1 million, while free cash flow amounted to EUR 23.8 million. Group net liquidity climbed to EUR 119.4 million (31 December 2012: EUR 29.6 million). All told, the equity ratio widened to 30.4 percent (31 December 2012: 26.6 percent), partly due to the successful issue of new equity in November 2013.

A further positive factor was a 19 percent increase in demand. The Group’s order intake reached a new record of EUR 1,503 million in 2013 (2012: EUR 1,268 million), thus coming in at the top end of the most recent guidance. Firmly financed orders amounted to EUR 1,259 million as of the reporting date (31 December 2012: EUR 1,049 million).

“We were able to achieve our planned turnaround in 2013. It is now very important to ensure that this success is made permanent and, in particular, that we achieve our medium-term goal of further improvement in profitability,” says Nordex CEO Dr. Jürgen Zeschky.

The figures stated in this press release are provisional only. The final annual financial statements as well as guidance for the current year will be presented following the completion of the statutory audit at the annual press conference in Frankfurt/Main on 24 March 2014.