Nordex shares near two-year high after strong sales outlook
Shares rose as much as 8.3 percent to their highest level since May 16, 2017
FRANKFURT: Wind turbine maker Nordex on Tuesday forecast higher-than-expected sales for the current year after its order book more than doubled, pushing its shares to their highest level since May 2017.
The group, which competes with Siemens Gamesa and Vestas, expects sales of 3.2 billion to 3.5 billion euros ($3.62-$3.96 billion) in 2019, an increase of up to 42 percent from last year and also beating the Refinitiv estimate of 2.94 billion.
Shares rose as much as 8.3 percent to their highest level since May 16, 2017.
“Sales guidance should push the shares even further up at first,” a Frankfurt-based trader said, adding he expected some profit taking at a later stage during the day.
Its margin on earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to come in at 3-5 percent, compared with 4.1 percent last year. Refinitiv forecasts a 4.7 percent EBITDA margin for 2019.
Chief Executive Jose Luis Blanco told Reuters that the group could turn a net profit if it can hit the upper end of the outlook, while the lower end would likely result in another loss. The group’s 2018 net loss stood at 84 million euros.
Driven by higher order intake in Sweden, France and Turkey, Nordex expects most of its sales to be generated in the second half of the year, Blanco said, adding the first half would be weak in comparison.
“We knew it would be a back-ended year.”
Source: reuters
