Nordex misses profit target despite rise in orders

GERMANY: Nordex has announced 59% increase in orders for the 1H 2011 but will still miss its EBIT target of 4%.

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The company said its new business performance was particularly strong in the US, which now accounts for 25% of group revenues. This was 12% over the same period in 2010.

Gross margins came to 28%. However, "structural costs" have lowered profits with EBIT dropping to €1.6 million from €7.1 million last year. It does not expect its EBIT target of 4% to be reached until next year.

Personnel costs rose by 12.5% to €43.2 million while other operating expenses rose by €11 million to €43.2 million.

In response, Nordex said it planned to lower personnel and other operating costs. It is also looking at forming alliances with other companies, particular in Asia and the offshore sector.

Last month, Nordex announced its CEO Thomas Richterich will be leaving the company when his contract expires next year.

Richterich, who has been with Nordex for nine years, said he was leaving the company for "personal reasons". His contract is set to end on 30 June 2012.

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