Wind turbine maker Nordex turns corner in overhaul
Shares rise 4.6 percent to top TecDAX.
German wind turbine maker Nordex on Friday said it had swung to an operating profit last year, boosted by stronger demand in its core European market as well as cost cuts after shutting down production in China and the United States.
Nordex said its earnings before interest and tax (EBIT) reached 44.3 million euros ($60.6 million) in 2013, up from a loss of 61.1 million euros in 2012. Sales grew a third to 1.429 billion euros, the group said.
Analysts had, on average, expected an EBIT of 46.9 million euros on sales of 1.417 billion. "We were able to achieve our planned turnaround in 2013. It is now very important to ensure that this success is made permanent and, in particular, that we achieve our medium-term goal of further improvement in profitability," Chief Executive Juergen Zeschky said in a statement.
Nordex shares, which have more than tripled since the beginning of last year, were up 4.6 percent, at the top of Frankfurt's technology index. Nordex, along with peers Vestas, Gamesa and Enercon, is slowly emerging from an industry crisis triggered by overcapacity crisis and scaled-back state subsidies, much similar to the shakeout that has hit the solar power industry in recent years.
The company, which is part-owned by the Klatten family, a major shareholder in automaker BMW, saw particularly high demand for its products in Europe, where sales surged by more than 50 percent, outpacing a 6-percent decline in newly installed wind capacity.
Reporting by Christoph Steitz