REpower Systems AG Announces Results for First Nine Months of 2010/11 (April 1, 2010 – December 31, 2010) (Germany)

• Total performance EUR 804.0 million
• EBIT EUR 44.4 million
• Order backlog rises to EUR 2.9 billion

In the first nine months of the fiscal year 2010/11, REpower Systems AG (WKN 617 703) achieved a total performance of EUR 804.0 million, compared with a total performance of EUR 936.3 million for the same period of the previous year. The revenue for the period under review amounted to EUR 758.0 million, compared with EUR 920.5 million in the previous year. At EUR 44.4 million, EBIT was down around 21% on the previous year (EUR 56.3 million). Earnings before tax amounted to EUR 43.1 million in the reporting period, compared with EUR 47.2 million in the previous year. The net result fell by 18.4% from EUR 32.1 million to EUR 26.2 million.

In the first nine months of the fiscal year 2010/11, REpower Systems AG supplied or installed wind turbines with a total capacity of 628 megawatts (MW). The previous year’s figure was 662 MW. The order backlog at the end of the period under review stood at 2,458 MW. This represents an increase of around 77% compared with the end of 2009 (1,391 MW). The contractually secured order volume as at December 31, 2010 totaled almost EUR 2.9 billion, an increase of around 71% on the previous year’s figure of EUR 1.7 billion.

In the period from April to December 2010, new orders were received for a total capacity of 1,019 MW (previous year: 701 MW). This represents a volume of more than EUR 1.1 billion. The substantial increase in incoming orders and the order backlog was due in particular to the conclusion of contracts for offshore projects with high revenue and the sale of a larger number of turbines of the REpower 3.4M104 type than in the previous year.

The company recently revised its outlook for the current fiscal year 2010/11 and now expects to achieve a total performance of EUR 1.25 billion to EUR 1.35 billion (previously: EUR 1.5 billion to EUR 1.6 billion) and an operating margin (EBIT margin) of 5% to 7% (previously: 7.5% to 8.5%). The reason for adjusting the forecast was that increasing numbers of projects are being postponed, particularly owing to outstanding funding commitments. Owing to the sluggish development of the market, these postponed projects have been offset only to a limited extent by adequate replacement orders in the current fiscal year.

Excess capacity on the wind energy market remains high, which is expected to lead to further pressure on prices and margins for onshore wind turbines in 2011. The Executive Board has therefore commenced extensive cost-cutting measures such as the purchase of components at lower prices in Asia. In order to improve its international competitiveness the company also intends to invest in additional production facilities abroad. REpower so far owned 90% of the Portuguese rotor blade manufacturer PowerBlades and recently acquired the remaining 10% share in the joint venture from Martifer Group. With immediate effect, REpower is the sole owner of the rotor blade producer. In addition, REpower Systems AG acquired the remaining 50% share in the in 2005 jointly founded joint venture REpower Portugal from Martifer. As of now, REpower Portugal Sistemas Eólicos S.A. headquartered in Oliveira de Frades is a 100 percent subsidiary of REpower Systems AG.


Source: repower, February 04, 2011