Nordex earnings still below 2017 levels

GERMANY: Despite making gains in Q3, Nordex's nine-month earnings and revenue for 2018 continue to be below 2017 levels, while its order book grew.

Nordex has received orders for 974MW from 17 different countries in the first nine months of the year

Revenue of €1.77 billion for the first nine months of 2018 was down 23.8% from the same period last year.

This came despite revenue of €815.8 million in Q3, equal to 46% of its revenue total for the year to the end of September.

Similarly, its earnings before interest, tax, depreciation and amortisation (Ebitda) of €71.4 million between 1 January and 30 September was down 60.7% year-on-year. But the €33 million in operating profit in Q3 represented 46.2% of this total.

Nordex key figures Jul-Sep 17 Jul-Sep 18 Jan-Sep 17 Jan-Sep 18
Revenue (€ million) 818.3 815.8 2,320 1,773
Turbine orders (€ million) 203 733 1,110 2,300
Turbine orders (MW) 210 974 1,143 3,070

Nordex had blamed "fierce competition" and price pressures in its first-half report, when revenue and earnings were even further below 2017 levels. The company made no mention of such factors in its nine-month report.

Meanwhile, its service order book swelled to a cumulative value of €2.15 billion by the end of the third quarter, up 15.4% year on year.

The manufacturer received service orders valued at €406.5 million in the first nine months of the year, of which €244.7 million (60.2%) came in the third quarter.

Its order book for projects has also grown this year, to a cumulative value of €3.13 billion by the end of September, up 186.1% on last year.

Nordex received project orders worth €2.34 billion in the first nine months of the year, with its 974MW of orders in the July-September quarter worth about €1.54 billion (65.9% of the nine-month total).

These orders in the first three quarters came from 17 different countries and were "well-balanced between the different regions", the company stated.

It received 38% of these orders from Latin America, 32% from Europe, 17% from North America and 13% from the rest of the world.

Nordex added that the strongest national markets included Brazil, Mexico, Argentina, the US, South Africa, France, Turkey and Sweden.

José Luis Blanco, Nordex CEO said: "We received a large number of orders from different markets around the world, achieving a healthy, diversified mix of new business.

"This will enable us to continue to compensate for temporary periods of weakness in individual markets, as is currently the case in certain European regions."