Hamburg, November 12, 2004. REpower Systems AG (TecDAX, WKN/security number 617703) has constructed 75 wind turbines in the first nine months of the current financial year and increased its nominal output slightly by 3.3 per cent to 123.5 megawatt compared with the previous year. The operating revenue grew from 138.8 million EUR to 152.2 million EUR in the period under review. The sales revenue also increased from 117.7 million EUR in 2003 to 130.5 million EUR. The operating results for the third quarter improved from minus 1.0 million EUR in the previous year to 0.9 million EUR. The operating results after nine months fell from minus 3.7 million EUR to minus 7.9 million EUR. For the year as a whole, REpower Systems AG expects to fall short of its planned construction target of 190 wind turbines. This is mainly due to a significant decline in the German market situation, which is only in part compensated by the positive development of the international business. In view of the numerous foreign orders which have already been acquired, REpower expects a more balanced development of its business in 2005 which permits further growth.
As per 30th September 2004, REpower Systems AG has installed 75 wind turbines, compared with 78 turbines in the same period in the previous year. This corresponds to a nominal power output of 123.5 megawatts compared with 119.5 megawatts in 2003, which represents a slight increase of about 3.3 per cent. The goal of constructing 90 wind turbines by 30th September 2004 was not achieved, which was partly due to a ruling by the Federal Administrative Court (Bundesverwaltungsgericht) on the approval practices for wind farm projects.
The sales revenue after 9 months increased by 10.9 per cent from 117.7 million EUR to 130.5 million EUR. The sales in the third quarter amounted to 64.8 million EUR (previous year: 39.9 million EUR) with a positive operating result of 0.9 million EUR compared with minus 1.0 million EUR in the same quarter in the previous year.
The operating result (EBIT) after nine months is minus 7.9 million EUR compared with minus 3.7 million EUR in 2003. The negative result is partly due to the seasonal effect, which is especially typical in the German wind energy industry, and partly to the higher cost basis for personnel and the cost of materials as a result of the growth in the company's turnover. On the whole, however, the personnel costs and cost of materials are in line with the budget. The negative effect on results of the change in the treatment of project companies in the IFRS annual financial statement can be considered to be 3.5 million EUR as per 30th September. In addition, depreciation rose by about 1.8 million EUR in the first nine months of the financial year compared with the same period a year earlier. This includes the write-off of the goodwill of the French subsidiary FEdeF in the amount of 0.6 million EUR because its business operations were closed down during the period under review.
The profit after tax amounts to minus 5.7 million EUR compared with minus 3.0 million EUR in the first nine months of the previous year. The earnings per share amount to about minus 1.06 EUR compared with minus 0.55 EUR.
Orders in hand (without Denker & Wulf) at the end of September 2004 consisted of 243 wind turbines with a total nominal power output of 433.5 megawatts. This corresponds to an order volume of 353.8 million EUR and an increase of over 20 percent compared with the previous year. The German wind energy market showed a significant decline after nine months, marked by a downward tendency with 1,090 megawatts of newly installed output, about 23 per cent below the level of the previous year. But REpower can compensate a part of the decline in the domestic market by the positive development in its international business. In addition to various projects in France and Belgium, a large order has been acquired in Troia, Italy, with a total output of 38 megawatts. This wind farm is currently under construction. Recently, REpower Systems AG gained the contract for the Caton Moor project in Lancaster, UK, with a volume of 16 megawatts and reached a licence agreement with the Dong Fang Steam Turbine Works (DFSTW) for the production of the successful 1.5 megawatt series “MD” in China.
REpower Systems AG will probably fall short of the year's target of 190 constructed wind turbines which was set at the beginning of the year. Reaching the sales and profit targets still appears to be possible, but has become more difficult compared with the time when the half-yearly report was published, and is largely dependent on the sales revenue of the wind farms constructed by Denker & Wulf in 2004. In view of the numerous foreign orders which have already been acquired, REpower expects a more balanced development of its business in 2005 which permits further growth.
Key figures REpower Systems group
Group key figures according to IFRS
Jul 1, 2004-
Jul 1, 2003-
Jan 1, 2004-
Jan 1, 2003-
Sales proceeds in EUR k
Total operating performance in EUR k
Operating result in EUR k
Income before taxes and minority interests in EUR k