Strong growth by German duo -- Nordex and Repower

Germany's listed wind turbine suppliers, Nordex and Repower, are showing strong growth. For the first nine months of the year, Nordex reports sales up 32% to EUR 493 million on the same period in 2006 and a 90% surge in earnings before interest and tax (EBIT) to EUR 23.3 million, with net income at around EUR 21 million, up from EUR 6.4 million in the first three terms of 2006. "This means we earned more money in the first nine months of 2007 than we did in the entire previous year," says Nordex CEO Thomas Richterich.

Company order books including both firm and conditional orders have hit a new record at EUR 2.5 billion, says Nordex, enough to secure work at full production until the end of 2009. The company is forecasting revenues for the whole year of EUR 760-770 million as "achievable" by completing projects postponed earlier in the year. But it sees the fourth quarter as a major challenge. "Inclement weather and unforeseen delays in the supply chain may interfere with the schedule," it warns. "By harnessing economies of scale," it is seeking an EBIT margin of more than 8% on the basis of the planned revenues. Looking ahead, the company forecasts sales of EUR 2.5-EUR 4 billion in 2011.

Repower Systems, owned by Indian wind company Suzlon, is the third largest German turbine builder after Enercon and Nordex. It achieved sales of EUR 373 million in the first nine months, up 27.5% from EUR 292.6 million in the same period of 2006. EBIT over the period reached EUR 7.9 million, soaring 132% from EUR 3.4 million in the comparable period of 2006. Repower reports a "potential order volume" of firm and conditional orders of EUR 1.2 billion. It also confirms targets of EUR 650 million in sales and an EBIT margin of 3-4.5% for the whole of 2007. In 2010 Repower expects to achieve sales of EUR 2 billion.