Nordex Falls as Sales Seen Below Forecast After Acciona Buyby and
Company sees sales at more than 3.4 billion euros this year
Analysts had expected 3.56 billion euros in Bloomberg survey
Nordex SE plunged as it forecast a smaller jump in sales for this year than analysts were expecting.
Nordex said it expects sales of more than 3.4 billion euros ($3.8 billion) in 2016 as it completes the purchase of its competitor Acciona SA, Chief Executive Officer Lars Bondo Krogsgaard said in Frankfurt on Monday. Analysts had expected revenue of 3.56 billion euros, according to the median of 10 forecasts compiled by Bloomberg.
The stock fell as much as 11 percent, the most since Feb. 8, in Frankfurt trading. Acciona shares were little changed in Madrid.
“We are more cautious in terms of the guidance contribution from Acciona because we don’t have full transparency yet,” Chief Financial Officer Bernard Schaeferbarthold said in Frankfurt on Monday. More details on the profitability of Acciona’s projects will only be available after the deal closes and guidance may be changed accordingly, he said.
Bid for Scale
The German wind-turbine maker bid for Acciona’s unit in October to create scale in a market that’s suffering increasing pressure to cut costs. As developed countries such as its home market Germany reduce support for renewables, Nordex intends to broaden its geographical reach with the help of Acciona.
As a result of the purchase of Acciona, orders will increase to more than 3.4 billions euros this year from 2.47 billion euros in 2015, the company estimated.
“We have started with a good order book into 2016 and continue to see a lot of potential in our focus markets in Germany, France or Turkey," Krogsgaard said. Acciona will contribute with its markets in India or Mexico to future growth, he said.
Together, both companies form the fifth-biggest turbine maker worldwide, according to data from the market researcher Navigant Consulting Inc.
Acciona could help Nordex diversify its markets beyond developed European nations, since the Spanish company generated more than 40 percent of its revenue outside the European Union last year. Nordex, which is based in Hamburg, said sales jumped 40 percent to 2.4 billion euros in 2015 because of record wind power installations in Germany.