Nordex CEO Resigns Following Drastic Outlook Cut
File photo: Nordex
Nordex Chief Executive Lars Bondo Krogsgaard will step down at the end of March, taking responsibility for a loss of confidence among investors after the wind turbine maker slashed its financial targets last month.
Weaker expectations for business in Brazil, India and South Africa caused Nordex (NDX1.HA) to significantly lower its sales and profit outlook for 2018. It said in February it now expected revenues of 3.4 to 3.6 billion euros ($3.7-3.9 billion), down from previous guidance for 4.2 to 4.5 billion.
Shares in the group went into a tailspin following the announcement and lost a third of their value in the subsequent days, with investors questioning its financial communication after Nordex reported record orders for Germany in January.
"Our credibility has suffered as a consequence of the outlook, and this follows a period where our handling of communication matters has been criticized," Krogsgaard said in a statement. "This is, ultimately, my responsibility."
Shares in Nordex turned positive on the news and were up 4.1 percent at the top of Frankfurt's technology index at 1548 GMT.
Krogsgaard will be replaced by current deputy-CEO and Chief Operating Officer Jose Luis Blanco, who served as the CEO of Spain's Acciona Wind Power before it was bought by Nordex in late 2015.
($1 = 0.9316 euros)
(Reporting by Christoph Steitz; Editing by Maria Sheahan)
(Reporting by Christoph Steitz; Editing by Maria Sheahan)
