After two years in the doldrums, German wind turbine maker Nordex is back in the black, posting a net profit for the first half of 2013. Encouraged by steeply rising demand, the company raised its full-year outlook.
Nordex posted a net profit of 1.3 million euros ($1.7 million) in the first half of 2013, comparing favorably with a loss of 23 million euros in the same period last year, company figures released Thursday showed.
The first profit in two years came on 57 percent higher sales of the German wind turbine manufacturer, reaching 661 million euros in the six months.
In addition, the company's restructuring drive of the past months was bearing fruit, said Nordex Chief Executive Jürgen Zeschky.
“Higher demand for our turbines, as well as improving productivity are showing that our strategy is working,” he said in the company's earnings report.
Nordex, as well as its main rivals Vestas and Repower, have been suffering from overcapacity and falling product margins in the market for wind power turbines.
The German firm, which is based in Hamburg, has drastically cut costs and closed plants in China and the United States to counter the downturn especially in the European markets.
Nordex appears to have turned the corner, claiming it had secured new orders to the tune of 839 million euros between January and June - up 61 percent from the same period a year ago.
Nordex CEO Zeschky said revenues for the full year could surge to 1.4 billion euros, which would be about 100 million euros more than had originally been envisaged.
As a result Nordex shares rose about 12 percent in the German stock market on Thursday, adding to gains of about 130 percent since the beginning of this year.
uhe/hc (Reuters, dpa)