Burden high costs
Nordex is still waiting for a profit
3/29/2022, 3:44 p.m
The wind turbine manufacturer Nordex wants to implement significantly more this year. But because production costs are rising, it won’t be enough to make money. Effectiveness is expected to increase significantly in the coming years.
According to CEO Jose Luis Blanco, the wind turbine manufacturer Nordex will again make losses in the new financial year. “Unfortunately, based on the forecast we gave, we won’t be in the black this year,” said Blanco. Last year, Nordex reported a net loss of 230 million euros after a loss of 130 million the year before. The manager explained that the first quarter will be weak, but this is taken into account in the forecast. The group is trying to pass on the increased costs for energy, raw materials and transport to customers and is also understanding. But the war in Ukraine is causing uncertainty.
The direct consequences of the war are manageable for Nordex. The group is only pursuing projects in the Ukraine in the order of 280 megawatts – with a total value of around 7000 megawatts. Nordex is trying to relocate the projects in Ukraine. The indirect consequences of the war are more serious. These included, for example, the effects on steel production or transport. So far, many ships have been on the move that have flown under the Russian flag or belonged to Russian owners.
In the current year, Nordex is aiming for at least the previous year’s result in terms of sales and returns. The proceeds are expected to be between 5.4 billion and 6.0 billion euros. In 2021, Nordex had increased sales by 17 percent to EUR 5.4 billion. The Ebitda margin should be 3.5 percent. It fell to 1.0 percent from 2.0 percent in 2021, partly because of higher costs. In the medium term, Nordex is still aiming for a margin of 8.0 percent. At times, the Nordex share rose by more than eight percent.