Wind Power REpower Systems AG announces business figures for first quarter of 2010/11

Total performance saw a decline from EUR 287.1 million to EUR 204.0 million in the first quarter of 2010/11. The operating result (EBIT) dropped from EUR 10.7 million in the previous year to EUR 1.5 million. After offsetting interest and other financing expenses and income, earnings before tax amounted to EUR 3.2 million (previous year: EUR 5.0 million).

After deduction of income tax, net earnings for the first quarter totaled EUR 1.8 million, which represented a drop of around 18% compared with the previous year (EUR 2.2 million).

In the first three months of the fiscal year 2010/11, REpower Systems AG delivered, installed or commissioned wind turbines with a total rated output of 169 megawatts (MW).

This figure was at the same level as in the previous year: in the first quarter of 2009/10 it amounted to 170 MW. During the reporting period onshore wind turbines of the MM and 3.XM series were installed. Almost 35% of the total rated output was installed in Germany and 65% abroad.

The order backlog amounted to 2.1 gigawatts as at June 30, 2010, which represented an increase of around 70% year-on-year. The contractually secured order volume thus rose from EUR 1.45 billion in the previous year to EUR 2.42 billion in the first quarter of 2010/11. In terms of the total rated output of the turbines sold, the proportion of international business was 65%.

The decline in sales and income was largely due to the postponement of projects by customers. From the current perspective, the Executive Board does not expect postponements during the year to have a negative impact on the full-year forecast.

For the fiscal year 2010/11, REpower is therefore still anticipating an increase in total operating revenue for the Group to between EUR 1.5 billion and EUR 1.6 billion. This forecast is accompanied by an increase in the operating margin (EBIT margin) to between 7.5% and 8.5%. The earnings development expected is predominantly based on economies of scale and a further reduction in the material cost basis.

Despite continuing uncertainty regarding the future development of the world economy in general, the company assumes that the fiscal year 2011/12 will see continued Group growth with a simultaneous improvement in the EBIT margin.

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