Nordex SE — Earnings Release 2003

May 27, 2003

News Details

Ad-hoc | 27 May 2003 08:42

Nordex AG english

New Nordex Management initiates tough restructuring programme Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– New Nordex Management initiates tough restructuring programme Half year loss sustained at the EBIT level due to softening demand / high non-recurring risk-provision charges Hamburg, May 27, 2003. In the first half of its current fiscal year, Nordex AG recorded a substantial contraction in business volumes. Thus, turnover declined by roughly 14 percent to EUR 164 million (previous year: EUR 190 million). In the traditionally weak second quarter (January – March) in particular, turnover receded to roughly EUR 56 million (year-ago quarter: EUR 94 million). The main reason for this muted business performance was the decline in demand for wind turbines, a trend which is also reflected in new business. In the first six months of fiscal 2002/03, Nordex received new orders valued at EUR 68 million, a decline of roughly 62 percent over the previous year (EUR 180 million). This decline in sales exerted heavy pressure on operating earnings. In October, Nordex had budgeted its costs structure on the assumption of turnover of more than EUR 520 million. At the same time, some wind farms were completed at a loss on account of the unforeseen high cost of materials. All told, the Company sustained a loss of EUR 28.8 million on the EBIT level (year-ago period: EBIT of EUR 4.7 million). In addition, Nordex sustained extraordinary costs of around EUR 37 million. This includes provisions for risks arising from old projects as well as expenditure on restructuring the Company. The new management board has worked with the support of Consulting company Roland Berger, which specializes in corporate restructuring, in its new lineup and has ushered steps to realign the Company. The main aspects of this restructuring programme entail focusing on key markets, reorganizing business processes as well as broad-based cost-cutting. In February 2003, Nordex implemented preliminary cost-cutting measures, which began to unleash their effects within the space of only six weeks. Thus, other operating expenses are down 12 percent, while personnel expenses were trimmed by 2.8 percent. Nordex has cut a total of 130 jobs, with both internal and external staff affected by these measures. For the year as a whole, Nordex expects to sustain an operating loss of EUR 40 – 45 million. The restructuring’s extraordinary costs are already included in the half year results. Nordex has now also adjusted its sales guidance and is looking for a figure of EUR 300 – 350 million this fiscal year. One of the main reasons for this adjustment is the substantial decline in demand in Germany, which will not offset by foreign business. New installed capacity in Germany declined by 22 percent between January and March 2003. Nordex expects a similar trend throughout the calendar year, medium- term a growth of approx. 11 percent per year for the global market. In the following year, the effects from the restructuring programme are expected to deliver significant improvements in the result. Nordex expects return to profit in 2004/05. For more information please contact: Nordex AG, Ralf Peters Telephone: + 49 (0)40 / 50098 – 100, Telefax: +49 (0)40 / 500 98 – 333 end of ad-hoc-announcement (c)DGAP 27.05.2003 ——————————————————————————– WKN: 587357; ISIN: DE0005873574; Index: TecDAX, NEMAX 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 270842 Mai 03