Investors Continue Selloff of Turbine Manufacturer Nordex
Shares of Nordex AG (Frankfurt: NDX1.F) , the German-based wind turbine manufacturer and wind farm developer, are in their third day of decline after the company announced disappointing Q3 2010 financial results and reduced its revenue guidance for the 2010 fiscal year.
Nordex shares had dropped 46 percent for the year when the company announced Q3 results and guidance November 11. Since November 11, they have fallen another 15 percent.
The only bright spot in the company’s results was its prediction that Q4 is likely to be the strongest quarter of the year for sales and earnings.
Nordex’s 2010 share price performance has mirrored that of wind industry giant Vestas Wind Systems A/S (OTC: VWDRY.PK) which has fallen 49 percent year to date on declining sales forecasts.
Nordex says it has launched a cost-cutting program as well as an initiative to boost the efficiency of its turbines to enhance competitiveness on a sustainable basis.
The Company announced November 15 the sale of three small turnkey wind farms it developed in France. The wind farms have a total capacity of 37.5 MW and were built in 2009 with turbines from Nordex’s 2.5 MW product line. Purchasers include a mix of private and public investors, including regional and municipal governments. The purchasers signed service agreements with Nordex with terms of 10 to 12 years.
Last month, Nordex opened the first phase of its flagship U.S. wind turbine factory in Jonesboro, Arkansas. The $40 million, 150,000 square foot plant will build nacelles for 2.5 MW turbines in Nordex’s third generation Gamma class. One such turbine can power about 700 U.S. homes, the company said. A second phase will be built depending on U.S. market conditions.
Photo credit: Nordex AG
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