UPDATE 1-REpower ups forecasts on strong order backlog

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FRANKFURT, March 7 (Reuters) - Wind turbine maker REpower raised its 2008/2009 sales and operating margin targets on Friday, boosted by a strong order backlog and strong earnings in 2007.

REpower Systems AG (RPWGn.DE: Quote, Profile, Research), controlled by India's Suzlon (SUZL.BO: Quote, Profile, Research), now expects sales to rise to 1.1 billion euros ($1.7 billion) in the year ending March 2009, compared with its previous target of at least 1 billion euros, the company said.

It also raised its operating margin guidance to between 5.5 and 6.5 percent from a previous range of 4 to 6 percent.

"The sustainable improvement of our cost structures and processes will lead to a further rise in our earnings power," REpower Chief Financial Officer Pieter Wasmuth said in a statement.

The company's order backlog was up almost 50 percent at 1.3 billion euros at the end of December compared with the previous year, REpower said.

Earnings before interest and tax (EBIT) more than doubled in 2007 to 28.2 million euros on sales of 680.2 million, up 48.2 percent, the company said in a statement.

Earnings after tax rose to 21.1 million euros from 7.1 million a year earlier.

Suzlon completed the acquisition of REpower in June last year and controls more than 80 percent of the company along with France's Areva (CEPFi.PA: Quote, Profile, Research) and Portuguese conglomerate Martifer (MARTI.LS: Quote, Profile, Research), which is 37.5 percent owned by Portugal's top builder Mota Engil (MOTA.LS: Quote, Profile, Research).

As a result REpower changed its fiscal year, which will end in future on March 31, it said. (Reporting by Eva Kuehnen; Editing by David Holmes)