ROSTOCK (dpa-AFX) - Nordex Group (NRDXF.PK) reported that Consolidated net profit for the first-half of 2016 rose by 38.2% to EUR 51.0 million from EUR 36.9 million last year.
Earnings before interest, taxes, depreciation and amortisation rose by a disproportionately strong 55.4% to EUR 136.6 million (H1/2015: EUR 87.9 million), equivalent to an EBITDA margin of 9.2%. This favourable performance was due to further progress in quality management and more efficient project execution processes.
'I am confident that we can continue to expand our new business and sales in the second half of the year. There are already signs that new markets and the United States will make a considerably greater contribution. The sharp improvement in profitability, which is of central importance for us, is particularly pleasing' said Lars Bondo Krogsgaard, Chief Executive Officer of Nordex SE.
The Nordex Group posted a 34.9% increase in sales to EUR 1,484 million in the first half of 2016, with organic growth of 18.6%. Acciona Windpower (AWP) was acquired in the second quarter of 2016 and consolidated from 1 April.
In view of the strong improvement in operating profit, the Management Board has raised its full-year earnings forecast for 2016 and now projects an EBITDA margin of between 8.3% and 8.7% (previously: greater than 7.5%). At the same time, a slight deterioration in project quality is expected in the second half of the year due to increased sales in Brazil and India. Nordex will execute its first major project in India end of 2016. At the same time, the cost of integrating the two companies will result in increased non-recurring expenses.
Sales are expected to increase to a total of EUR 3.35 - 3.45 billion in fiscal year 2016. The upper end of this range is based on the assumption that there will be no further project delays. In the first half of 2016, Nordex achieved around 44% of its sales target and 40% of its order intake target. Accordingly, new orders are expected to amount to over EUR 2.0 billion in the second half of the year. Nordex confirms its order intake target of above 3.4 billion EUR.
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