Nordex lowers profit forecast

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German wind turbine producer Nordex has admitted to problems on several fronts that have prompted a downward adjustment of its expected returns for 2008. The company is keeping to its revenue target for this year of EUR 1.1 billion, 47% up on the previous year, and expects earnings before interest and tax to increase by at least 50% to EUR 60-66 million. But instead of the previously projected profit margin of 7% in 2008, it will likely come in at 5.5%-6%, says the company. Its list of problems includes start-up costs for setting up international structures: in particular the company expects cost overruns in handling the projects planned in the UK and Italy in the second quarter of 2008. Setting up subsidiaries overseas, such as in the United States, will also be more costly than expected. In addition, higher turbine transport expenses and penalties for delayed deliveries will take their toll.

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