Nordex Cuts 2011 Outlook as EU Debt Crisis Delays Wind Farms
Nordex won't 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 today in a statement.
Europe's debt woes are 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. (GE) 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 slide by a further 5 percent this year, Richterich said. The company seeks to reduce product and 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.
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