FRANKFURT (Reuters) – German wind turbine maker Nordex <NDXG.DE> fell further into the red in January-September, it said on Wednesday, while its negative free cash flow nearly doubled due to increased investments in rotor blade production in Mexico and Spain.
Total capex nearly doubled in the first nine months of the year to 101 million euros (86.7 million pounds) from 60 million in the same period last year, Nordex, which is subject to a low-ball takeover bid from top shareholder Acciona <ANA.MC>, said.
Its nine-month net loss widened to 77 million euros, from 52 million a year earlier, while free cash flow was at a negative 156 million, compared with -84 million a year ago.
Nordex’s shares were down 2.6% to 12.20 euros at 0907 GMT, with traders pointing to profit taking following the results.
Its current share price is higher than Acciona’s 10.32 euros-per-share bid, unveiled last month. Acciona had to make the offer after it surpassed the 30% ownership mark as part of a capital raising Nordex carried out.
It now has a stake of 36.27% in the German group.
Wind turbine makers are currently grappling with a global shift away from subsidies and towards a market-based approach which rewards developers that make the lowest bid for projects and puts pressure on profit margins.
Last week, Nordex’s larger rival Siemens Gamesa <SGREN.MC> delayed its 2020 outlook by two years, hit by lower onshore and offshore prices for its turbines amid global trade tensions and uncertainty over Britain’s departure from the European Union.
Nordex kept its 2019 targets, still expecting sales of 3.2 billion-3.5 billion euros and a core profit (EBITDA) margin of 3-5%.
(Reporting by Christoph Steitz; Editing by Susan Fenton)