Nordex Jumps After Raising Sales Forecast: Franfurt Mover
Nordex climbed as much as 17 percent and was trading up 15 percent at 8.69 euros as of 3:17 p.m. in Frankfurt, the highest based on closing prices since March 2011. Trading volume was more than four times the three-month daily average. The stock has almost tripled this year, valuing the company at 639 million euros ($846 million).
Full-year sales will “grow more quickly” to within a range of 1.3 billion euros to 1.4 billion euros compared with the 1.2 billion euros to 1.3 billion euros predicted earlier, the Hamburg-based company said in its quarterly earnings statement today. Earnings before interest and taxes will amount to 2.5 percent to 3.5 percent of sales, wider than a previous margin forecast of 2 percent to 3 percent.
“Order intake has grown, but one should also look at the profit, and their Ebit margin is not great as it is generally in the industry,” Heinz Steffen, an analyst at Fairesearch GmbH in Kronberg, Germany, said by phone. That stems from price pressure in the wind-power industry that will remain high, as “all turbine makers try to sell as many wind towers as possible in order to obtain contracts for the long-term service of wind farms or to replace less-efficient wind towers.”
Nordex sold 93 percent of its turbines in the Europe, Middle East and Africa market in the first half, an increase from 80 percent a year earlier. The company is shutting a plant in Yinchuan, China, this year and a site in Jonesboro, Arkansas, in February 2014 to focus on producing turbines in Rostock, Germany.
“One future weakness could be the focus on European markets,” said Steffen, who has a reduce recommendation on the stock.
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