euro adhoc: REpower Systems AG
quarterly or semiannual financial statement /
REpower achieves considerable growth in first half-year
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
14.08.2006
- Sales up by 46.9% to EUR 178.5 million - EBIT improves from EUR -12.7 to EUR 2.4 million - Highest number of orders since the company was founded - Joint venture to be established in China
Hamburg, 14 August 2006. REpower Systems AG successfully installed 142 wind turbines in the first half of 2006, compared to 69 turbines in the previous year. This corresponds to a rated output of 267.0 megawatts compared to 123.5 megawatts in 2005, thus representing an increase of 116.2%. A total of 17 turbines were carried over from 2005 and were largely included in sales for the previous year, depending on the degree to which they had been completed.
Total output was up by 41.9% from EUR 125.8 million to EUR 178.5 million during the reporting period, whereas sales increased by 46.9% year-on-year from EUR 121.5 million to EUR 178.5 million.
EBIT totalled EUR 2.4 million in the first half of the current financial year, compared to EUR -12.7 million in the first half of 2005. Net earnings increased from EUR -8.6 million in the first half of 2005 to EUR 0.9 million.
The order book contained purchase agreements for 430 wind turbines with total rated power of 821.5 megawatts at the end of June 2006. This is the highest number of orders since REpower Systems AG was founded and corresponds to a potential order volume of EUR 725.1 million.
Some projects had to be postponed from the second to the third quarter as the supply of key components, particularly gear systems, rotor blade bearings and hubs, was not carried out in line with contracts. The current bottlenecks may continue into the second half of the year despite secured supply contracts. This is due to a shortage in cast and forged parts, which is affecting the mechanical engineering sector worldwide. However, provided that no more supply delays result from the current component bottlenecks, the forecast for the year as a whole remains achievable (sales of EUR 450 million, EBIT EUR 11 million to EUR 13.5 million).
REpower plans to increase the installation figures to around 325 wind turbines and to increase sales volume to EUR 650 million in the 2007 financial year. A further improvement of the EBIT margin is to be expected.
The projects listed in the order book currently cover the period until the 2008 financial year. In its long-term planning, REpower thus expects the strong growth to continue. From today's perspective, the number of installations will increase to at least 400 turbines with a sales volume of over EUR 800 million in 2008.
"We plan to employ up to 200 new employees in the areas of service, development, production and at our foreign subsidiaries by the end of 2007 in order to be prepared for the future growth," announced Prof. Fritz Vahrenholt, Chairman of the Executive Board of REpower Systems AG.
REpower Systems AG has also announced its plans to establish a joint venture in China. REpower Systems AG, the Chinese steel construction and mechanical engineering company NHIC (North Heavy Industries Corporation, 20,000 employees), which belongs to the NORINCO Group, and the British wind farm developer Honiton Energy Ltd. will be involved in the company "REpower North (China) Ltd." REpower will hold 50.01%, NHIC 33.34% and Honiton 16.65% of shares. REpower North (China) Ltd. will produce 2-megawatt MM70 and MM82 turbines in northern China. The corresponding joint venture contracts are to be signed in China at the end of August.
With the 1.5-megawatt class, REpower has already been present on the Chinese market since 2004, through a licence agreement with Dong Fang Turbine Works (DFSTW). With 7,000 employees, DFSTW from Deyang (Sichuan province) is one of the leading Chinese manufacturers of steam and gas turbines.
Parallel to the publication of 1st HY results, a telephone conference for analysts and journalists will take place at 10 am (CET). The number to dial is +49 (0)69 40 359 666.
end of announcement euro adhoc 14.08.2006 08:56:15
Further inquiry note:
Thomas Schnorrenberg
Investor Relations Manager
Telefon: +49(0)40-53930-723
E-Mail: t.schnorrenberg@repower.de
Branche: Alternative energy
ISIN: DE0006177033
WKN: 617703
Index: Prime All Share, CDAX, Technologie All Share
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade