Bloomberg News

Nordex Cuts 2011 Outlook as EU Debt Crisis Delays Wind Farms

November 15, 2011

(Updates with CEO comment from third paragraph.)

Nov. 14 (Bloomberg) -- Nordex SE, a German wind turbine maker, cut its full-year sales and earnings forecast as the European debt crisis restricted project financing and delayed orders.

Nordex will not reach sales of about 1 billion euros ($1.4 billion) and expects revenue to miss forecasts by about 80 million euros in the fourth quarter, resulting in an operating loss before one-time expenses of 10 million euros for the year, the Hamburg-based company said in a statement today.

The European debt crisis is making wind farm financing “increasingly difficult,” delaying orders including one for a project in Greece, Chief Executive Officer Thomas Richterich said on a call with reporters today.

Turbine makers led by Vestas Wind Systems A/S and General Electric Co. have seen slower demand growth, falling prices and narrowing margins as Chinese companies including Xinjiang Goldwind Science & Technology Co. grab market share.

Prices for turbines will continue to slide by another 5 percent this year, Richterich said. The company seeks to reduce product costs, plans to cut structural costs by about 50 million euros and will introduce new products to return to growth next year, he said.

Nine-month revenue increased 8.8 percent over the previous year to 668.2 million euros, Nordex said, citing growing sales in the U.S.

The company is still looking for an “industrial partner” for its Chinese business and hopes to sign contracts by the end of the year, and before April 1 at the latest, when Juergen Zeschky is scheduled to take over as CEO, Richterich said.

--Editors: Reed Landberg, Amanda Jordan

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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