German engineering group Nordex has managed an earnings turnaround, logging a profit in 2013 after two consecutive years in the red. The turbine manufacturer is reaping the benefits after overhauling its operations.
Nordex carved out earnings before interest and taxes of 44.3 million euros ($60.7 million) in 2013, comparing favorably with an operating loss of 61.1 million euros in the previous year, according to provisional financial figures released by the Hamburg-based wind turbine maker on Friday.
The operating profit came on the back of a 33-percent spike in sales for the year, which totaled 1.429 billion euros according to the engineering firm. Sales were driven especially by higher demand for its turbines in Europe and the Middle East, Nordex added, which made the firm weather a weaker US market and sluggish growth in Asia.
Nordex also said that the earnings turnaround was supported by a restructuring program which had helped boost profitability and reduced costs.
“It is now very important to ensure that this success is made permanent and, in particular, that we achieve our medium-term goal of further improving profitability,” Nordex Chief Executive Jürgen Zeschky said in a statement.
Zeschky didn't give a guidance for 2014, but Nordex Chief Financial Officer Bernard Schäferbarthold told the Reuters news agency recently that he expected new orders to reach the record level achieved in 2013. Last year, Nordex managed to win orders to the tune of 1.5 billion euros.
Investors have welcomed Nordex's latest result, adding 5 percent to the value of the company's share, trading at more than 11 euros in Frankfurt on Friday.
uhe/msh (Reuters, Nordex)