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Nordex starting 2008 off with growth of 50 percent


50 percent increase in total revenues to EUR 231 million

• 18 percent improvement in EBIT to EUR 6.6 million

• Heightened seasonality in project business

• Margin to widen to 7 percent on sales of EUR 1.1 billion in 2008

Hamburg.-In the first quarter of 2008, the Nordex Group (ISIN: DE000A0D6554) achieved a 50 percent increase in total revenues to EUR 231 million (previous year: EUR 154 million). In line with expectations, sales rose by 32 percent to EUR 199 million (previous year: EUR 151 million), underpinned by the commencement of work on numerous projects in preparation of the high construction volumes expected for the second half of the year. Unfinished goods increased by EUR 32 million, reflecting the rise in production output. Thus, turbine assembly output rose by 59 percent to 210 MW (previous year: 132 MW).

Earnings before interest and taxes climbed by 18 percent to EUR 6.6 million (previous year: EUR 5.6 million). As a result, the return on sales stood at 3.3 percent (previous year: 3.7 percent). One crucial reason for this was the cost of building up structures in preparation for the higher sales volumes in the second half of the year. Accordingly, personnel expenses rose by 41 percent. The cost of materials ratio climbed to 80.6 percent (previous year: 79.2 percent) due to the high production output which was substantially greater than sales. The margin contributions from the projects on which work has commenced will be recognized in future periods.

Net income for the period rose by 21 percent to EUR 5.7 million (previous year: EUR 4.7 million). spurred by net financial income of EUR 0.8 million (previous year: net financial expense of EUR 0.08 million). The tax rate stood at 23 percent (previous year: 14 percent). Earnings per share rose to EUR 0.09 (previous year: EUR 0.08).

Cash and cash equivalents contracted from EUR 212 million to EUR 176 million. Inventories for short-term projects increased by EUR 57 million to EUR 289 million. The increase in working capital to EUR 72.5 million (December 31, 2007: EUR 18.2 million) in particular resulted in a net outflow of cash from operating activities of EUR 28.3 million (previous year net outflow of EUR 25.8 million). The working capital ratio came to 7.8 percent (previous year: 7.1 percent). This low level was achieved thanks to the reservation fees of EUR 132 million received for medium-term projects.

The value of order books rose by 136 percent as of March 31, 2008 to EUR 3.3 billion (previous year: EUR 1.4 billion) and comprises firm orders of EUR 1.2 billion and master contracts of EUR 2.1 billion. This is sufficient to cover revenue targets until mid 2010.

For 2008 as a whole, Nordex continues to forecast sales of EUR 1.1 billion and a margin of 7 percent. With respect to the distribution of sales over the year, management expects substantially over 50 percent of the projects to be completed in the second half of the year.

Says Thomas Richterich, Nordex AG’s CEO: “The first quarter lived up to expectations and shows that we are well on the way to achieving further profitable growth this year as well. In the second half of the year in particular, project handling volumes will pick up considerably. We have already completed the necessary preparations at the production level to cope with the heightened volumes in the final six months of the year.”

During today’s telephone conference, the Management Board will elaborate on the interim financial statements and answer any questions.


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