Nordex Increases 2014 Goals After Strong First Quarter

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The management board of Nordex has raised the turbine maker's full-year guidance after the company recorded ‘better than expected’ business performance in the first quarter of this year (Q1'14).

According to Nordex, the German company's sales increased by 64% year-over-year to a record EUR 424.5 million during the quarter. Furthermore, order intake jumped to EUR 562 million, a 71% increase from the same period last year.

Consolidated operating earnings rose to EUR 21.1 million, compared to negative operating earnings of EUR 0.7 million in Q1'13. Nordex says this is due in particular to cost-cutting measures and improved capacity utilization. Consolidated net profit during the quarter amounted to EUR 9.1 million, compared to consolidated net loss of EUR 8.4 million in Q1'13.

At 71%, the EMEA region (Europe and Africa) accounted for the bulk of Nordex's business. However, the company says sales in the Americas and Asia developed exceptionally well, rising to EUR 124.1 million from EUR 14.5 million during the same period last year. Nordex's service business also increased to EUR 34.3 million in the first quarter, compared to EUR 30.8 million in Q1'13.

Nordex notes that its N117/2400, which remains its top-selling turbine, accounted for 34% of sales. Launched last year, the company's Generation Delta contributed 22% of orders.

Nordex says that, with business performance so far exceeding expectations and given the improved forward visibility over the next few quarters, the company's management board has raised its full-year guidance for this year. Accordingly, the board is now looking for sales of EUR 1.5 billion-EUR 1.6 billion (previous guidance: EUR 1.4 billion-EUR 1.5 billion). The EBIT margin is expected to reach 4.0%-5.0% (previous guidance: 3.5%-4.5%). In addition, Nordex will announce its medium-term forecasts in the next few months.

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