Wind turbine maker Nordex experienced an earnings turnaround and returned to profit in 2013. In addition, the company says it has secured funding for continued growth.
According to the company's latest financial report, sales in 2013 rose by about 33% to EUR 1,429.3 million, compared to EUR 1,075.3 million the previous year. Earnings before interest and taxes (EBIT) amounted to EUR 44.3 million, equivalent to an EBIT margin of 3%. Nordex notes it had sustained an operating loss of EUR 61.1 million during the previous year on account of substantial non-recurring expenses arising from the restructuring of group operations in the U.S. and China.
Nordex says the sharp increase in sales was due to the company's increasingly stronger business in the EMEA region, where sales surged by over 50% to EUR 1,306 million (2012: EUR 869 million). By contrast, Nordex says its performance in the Americas reflected the general downward trend afflicting the industry, particularly in the U.S.
The company says the earnings turnaround was driven by the execution of more profitable projects together with various cost-cutting measures. For one thing, Nordex reduced its product costs, widening its gross margin to 22.6% (2012: 21.4%).
The company also saw a 19% increase in demand. The company's order intake reached a new record of EUR 1,503 million in 2013 (2012: EUR 1,268 million). Firmly financed orders amounted to EUR 1,259 million.
Furthermore, Nordex says it has signed with its banks a new and substantially optimized syndicated credit facility for bank guarantees. The facility amounts to EUR 550 million and ends in June 2017.
"In this way, we have created the financial basis for funding our expected further growth in the future and the resulting guarantee obligations," says Nordex CFO Bernard Schaferbarthold.