Nordex increases profitability

GERMANY: Despite being hit by a major slump in year-on-year sales, Nordex actually increased its overall profitability after reducing costs and generating greater income from realised projects.

The company's revenues fell 31.7% from EUR513 million in H1 2009 to EUR350 million in H1 2010 as its order book shrank by 35% due to shortfalls in the project finance provided by banks. However, sales surged by 32% in Q2 2010 to around EUR200 million (Q1 2010: EUR151 million) and the company's order backlog stood at EUR2.3 billion as of June 30.

The heightened profitability of realised projects caused Nordex's gross margin to increase substantially from 21.4% in H1 2009 to 28.5% in H1 2010.

Earnings before interest and tax (Ebit) in H1 declined from EUR9.5 million to EUR7.1 million year on year, but a reduction in interest and tax expense led to an increase in net profits from EUR2.3 million to EUR2.9 million.

The company is predicting a slight increase in full-year revenues for 2010, with higher sales expected in the second half of the year.

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