WASHINGTON: Nordex reduced its revenues forecast for this year amid lower business expectations in some core markets, sending its shares down 17.6% to €13.67 in late afternoon trading in Frankfurt today. During a review of figures for this financial year and the medium-term target for 2018, Nordex said revenues this year are likely to dip to between €3.1bn and €3.3bn, a drop compared to 2016. While Nordex has not yet released its financials for last year, the company’s revenue guidance for 2016 is €3.35bn. The reason behind its lower expectations is less business in “certain” markets, although the company did not give further details. One of Nordex’s core markets is its home turf, Germany, where it installed 267 units in 2016, a substantial boost compared to 176 turbines in 2015.
The company is also a large player in the French market and in the Americas region. Meanwhile, earnings before interest, tax, depreciation and amortisation (Ebitda) are expected to remain “almost stable” this year, compared with the margin of 8.3% expected for 2016. The target range for the operating margin is 7.8% to 8.2%, said Nordex. Looking further ahead, the company is targeting revenue of €3.4bn to €3.6bn in 2018 and an unchanged Ebitda margin compared to the previous year.
“The main basis for this development is the internal programme to reduce the cost of energy (COE), which Nordex is using to counteract the pricing pressure,” said the group. “In addition, Nordex expects synergy benefits from the acquisition of Acciona and the almost complete lack of non-recurring expenses, which reduced earnings in 2016.” The merger with Acciona was completed on April 1, 2016. As a result, Nordex’s regional scope has widened, with the company achieving new business in the past year in North and South America. Nordex’s revenues warning comes as Spanish wind group Gamesa reported a 77% boom in net profits last year, having raised its outlook twice during the course of the year. Gamesa sold 4.3GW of turbines last year, more than a third of them in India.
