Nordex Confirms Guidance for 2019 and is Preparing for High Installation Volume in the 2nd Half of 2019

Hamburg, Germany - Despite a decline in earnings, the Nordex Group presented better figures for the first half of 2019 than expected. The wind turbine manufacturer generated consolidated sales of EUR 990.8 million (H1 2018: EUR 957.1 million) in the first six months of 2019.

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. According to the group 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. 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.

As Nordex points out, in light of the sharp rise in worldwide installations planned for the second half of 2019, production output has already increased significantly. 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.

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.”

The Nordex Group is further extending its product portfolio in the market segment of turbines with a nominal capacity of more than 5 MW. For the Delta4000 5.X series, the N163 / 5.X will be presented for the first time at this year's Husum Wind (10. - 13.09.2019). Compared to the recently launched N149/5.X turbine, the N163/5.X shows its strengths particularly on projects with lower wind speeds. One central difference lies in the rotor diameter, which has been increased by 14 metres to a total of 163 metres compared to that of the N149/5.X. This makes it one of the biggest rotors in the onshore segment. This larger rotor diameter results in a swept area of 20.867 square metres. Compared to the N149/4.0-4.5, currently being produced in series, this means an additional yield of up to 20 percent for the new turbine, Nordex says.

Source: IWR Online, 27 Aug 2019