Germany

Germany

Loss-making continues at bullish Nordex

German manufacturer Nordex remains in the red, with a net loss of €21 million in Q3 2019. But the company was in buoyant mood as sales increased 16% "as expected".

Nordex ramped up production ahead of a busy Q3 and Q4 -- and Q3 did not disappoint
Nordex ramped up production ahead of a busy Q3 and Q4 -- and Q3 did not disappoint

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Third quarter revenue was up 38% to €916 million and earnings before interest and tax was up from a negative figure in Q3 2018 to €8 million in 2019.

The company had been planning for a busy second half of 2019, following losses in both Q1 and Q2, partly the result of a ramp up in production in anticipation of increased activity in the latter quarters of the year.

Across the first nine months of the year, Nordex increased production output by 78%, from 1,736MW in 2018 to nearly 3.1GW so far in 2019.

José Luis Blanco, Nordex CEO, said the company was operating within expectations for 2019 "with a significantly stronger second half of the year".

"In light of this, we are confirming our guidance for the current financial year. It is now important for us to process a high number of projects efficiently, while at the same time pushing ahead with the transformation of our supply chain," Blanco added.

Following the results, Nordex reaffirmed its guidance for 2019 of an Ebitda margin of 3-5%. After a strong third quarter with an Ebitda margin of 4.5%, for the year as a whole, it now stands at 3.1%. 

To achieve this in the final quarter, Nordex successfully raised the additional capital via a share issue with its majority stakeholder Acciona in October.

As a result of increasing its share holding, Acciona is required under German law to launch a full takeover bid for Nordex, which is expected in January.

Across the nine months between January and September, Nordex revenue totalled €2.52 billion, up from €1.75 billion in the same period a year ago.

Meanwhile, it recorded a consolidated net loss of €76.5 million, up from the loss of €51.8 million in 2018.

The company won orders for 1.7GW in the quarter, taking its total for the year to 4.74GW of new business, valued at €3.3 billion. This is a 54% growth in megawatt volume and a 41% increase financially.

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