Broadwind Energy cuts loss in Q3 2014

Oct 30, 2014 - US wind industry supplier Broadwind Energy Inc (NASDAQ:BWEN) said today it had reduced its third-quarter net loss from continuing operations to USD 1.8 million (EUR 1.4m) from USD 2.5 million a year back.

The company attributed the improvement to better operating results in the gearing and services divisions and lower restructuring and regulatory costs. These factors, however, were largely offset by the weaker performance of the towers and weldments segment, which specialises in the manufacturing of wind turbine towers.

Broadwind’s president and CEO, Peter Duprey, said the company expects to generate a full-year revenue of USD 248 million to USD 250 million for an annual net loss of between USD 4 million and USD 5 million, in view of the lower margin mix of tower sales and cyclically lower revenues from the services division.

Non-GAAP adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased to USD 2 million in the third quarter from USD 2.7 million a year earlier, because of certain operational issues in the towers and weldments division.

Broadwind recorded a slight 1% decline in total sales to USD 60.3 million due to lower tower production. The towers and weldments unit contributed the most -- USD 45.1 million, even though the figure was down 4% year-on-year. The gearing division added USD 10.3 million, essentially flat compared to the same period of 2013.

Year-to-date net loss from operations was USD 997,000, which is a reduction from USD 6.6 million a year earlier. Nine-month revenue increased 18% to USD 187.5 million thanks to a 19% rise in tower production volume.

Total order backlog as at the end of September was up 36% year-on-year to USD 228.1 million.

(USD 1.0 = EUR 0.794)

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