Broadwind cuts Q3 revenues guidance amid production slowdown

US company Broadwind Energy Inc (NASDAQ:BWEN) on Wednesday revised downwards its revenues forecast for the third quarter of 2018 due to a drop in wind tower production rates.

The manufacturer said it now expects third-quarter revenues of between USD 31 million (EUR 26.8m) and USD 32 million, as compared to previous projections of USD 34 million-36 million as delays in steel deliveries have led to a decline in wind tower production levels. “Although tower orders are firming up for the next several quarters, lead times for domestic steel have lengthened despite sharply higher prices, due to the uncertainty regarding available steel imports,” said president and CEO Stephanie Kushner.

Broadwind’s short-term outlook for tower deliveries has declined, affecting second-half revenues and earnings. Still, the company remains confident that plant utilisation will be higher later this year and into 2019.

In spite of the slowdown in the wind tower business, Broadwind is witnessing an improvement in its gearing division and said its order intake from oil, gas, wind and mining customers remains “robust.” As a result of the improving outlook for the gearing business, the group guided for positive third-quarter earnings before interest, tax, depreciation and amortisation (EBITDA), in spite of the lower revenue projections for the wind tower operations.

(USD 1.0 = EUR 0.863)

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