Broadwind (NASDAQ:BWEN), a US manufacturer of wind towers and other specialised equipment, said on Friday its second-quarter results were affected by a year-over-year decline in wind tower section sales, mainly due to a delay of some projects into the second half of 2021.
Revenues came in at USD 46.5 million (EUR 39.4m) for the quarter, down 15% from a year ago.
The company expects its second-half consolidated sales to be down about 25% on the year due to a pause in wind energy projects. “...[W]e believe some customers are waiting for raw materials costs to normalise which, when balanced against wind developers’ efforts to begin construction following a potential PTC [Production Tax Credit] extension, has served to push tower orders into next year,” explained president and chief executive Eric Blashford.
In the second quarter, Broadwind booked net profit of USD 10.3 million, up from USD 529,000 in the second quarter of 2020, and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of USD 12.8 million, up from USD 2.9 million. The increases reflect benefits related to loan forgiveness under the Paycheck Protection Programme (PPP), and to the Employee Retention Tax Credit (ERC).
Sales at the Heavy Fabrications segment, which includes wind towers, declined by USD 7.8 million to USD 35.8 million as a result of a 6% decline in tower sections sold, a lower average selling price due to the mix of towers produced and decreased industrial fabrication sales, the company said. Gearing segment sales rose by around USD 500,000 to USD 7.4 million, while Industrial Solutions segment sales fell by around USD 900,000 to USD 3.5 million.
Broadwind expects third-quarter revenue of between USD 38 million and USD 42 million and adjusted EBITDA of between USD 500,000 and USD 1 million.
The company also said it continues to evaluate bolt-on acquisitions aimed at taking advantage of its existing manufacturing expertise and exposure to clean tech markets.
| in USD million |
Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
| Revenues |
46.5 |
54.9 |
79.2 |
103.6 |
| Operating (loss) profit |
(2.3) |
1 |
(6.6) |
2.7 |
| Net profit |
10.3 |
0.5 |
9 |
1.5 |
(USD 1 = EUR 0.847)
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Author: Ken Teegardin. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic.
