Losses running as expected

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Germany's Repower Systems reports a reduction in its turnover and a trebling of losses for the first half year compared to the same period in 2003. But it maintains its forecast for a "moderate increase in turnover and earnings for the whole year."

The wind turbine manufacturer attributes both the 15.6% fall in turnover -- from EUR 77.8 million in the first half of 2003 to EUR 65.7 million -- and the EUR 8.8 million loss (compared to a EUR 2.8 million loss last year) to the "stricter" application of International Financing Reporting Standards (IFRS). All publicly traded companies in the EU must report to IFRS rules from 2005. Repower says it has started a year earlier than required, so the "half-year loss is according to plan."

In the traditionally slow first half of the year for the wind industry, Repower installed 80 MW in the first six months, compared with 67 MW in the same period last year. Due to the IFRS rules, however, only 35 of the new turbines are included in turnover figures, the company says.


In the second half of the year, Repower expects to "compensate for the IFRS effect" and better its 2003 performance. Last year, operating profit was EUR 12.9 million on a turnover of EUR 285.5 million.

Its optimism is boosted by "the favourable development of foreign business." It expects to install at least 50 turbines outside Germany in 2004. On Repower's books at the end of June were orders for 432 MW.

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