Nordex SE — Earnings Release 2003

May 10, 2004

News Details

Ad-hoc | 10 May 2004 08:16

Nordex performs above budget in the first half year

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Nordex performs above budget in the first half year Order receipts up by 16 % / Loss reduced by 57 % Hamburg, May 10, 2004. The preliminary figures for the first half of fiscal year 2003/04 (1.10.03 – 31.3.04) confirm the further stabilisation of Nordex AG operative business. In the first half year the Group received new orders worth EUR 124.4 mn (previous year: EUR 107.3 mn). This represents a year-on-year increase of 16 per cent in spite of the fact that Nordex has been applying stricter criteria for recording order receipts since January 1, 2003. Some 65 per cent of the new orders relate to foreign projects. Here once again the focus was on the rest of Europe, where the demand for large turbines in particular increased. For example, two Portuguese customers together ordered 24 N90 turbines with a value of EUR 52.7, mn and Siemens Niederlande placed an order for nine N80s worth around EUR 17 mn. As expected, revenues were down in the second quarter. This was due above all to the seasonal drop in domestic business, German industry installing approximately 8 per cent fewer machines than in 2003. Nevertheless, at EUR 120 mn, revenues for the half year were slightly above budget. This corresponds to a year-on-year revenue decrease of 20 per cent. However, a direct comparison with the previous year is not possible because Nordex has been applying the percentage-of- completion method more restrictively since July 1, 2003. Operating income continued to improve in the second quarter of 2003/04. Over the half year losses before taxes and interest (EBIT) decreased by 57 per cent to EUR 12.5 mn (previous year: EUR 28.8 mn), a better performance than planned. The main reason for the improved earnings is to be found in the decline in the cost-of-materials ratio to approx. 82 per cent (previous year: 87.7%). The balance from other operating expenses and earnings fell by some 44 per cent, personnel expenditure by 19 per cent. The number of employees at reporting date dropped by some 19 per cent to 721 (previous year: 887). Nordex was free cash flow positive the third quarter (+ EUR 4.2 mn). The improved operating result can be attributed to the restructuring program introduced in the summer of 2003, around 70 per cent of which Nordex has now implemented. The key focuses of this program are the optimisation of business processes and radical cost cutting on the basis of technical and commercial measures. In the current financial year Nordex still expects a loss before taxes and interest totalling EUR 28 mn. A return to profit territory is planned for fiscal year 2004/05. Note for analysts and the press: At the international telephone conference scheduled for 10:00 h (CET) today Thomas Richterich (Spokesman for the Nordex AG Management Board) will explain the preliminary figures for the first half of 2003/04. Contact in case of queries: Nordex AG Ralf Peters Telephone: 040 / 500 98 -100, Fax: – 333 end of ad-hoc-announcement (c)DGAP 10.05.2004 ——————————————————————————– WKN: 587357; ISIN: DE0005873574; Index: NEMAX 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 100816 Mai 04