Broadwind Energy moves to profit on lower revenue in Q3

Broadwind Energy Inc (NASDAQ:BWEN) today reported profit from continuing operations of USD 1.2 million (EUR 1.1m) for the third quarter of 2016, against a loss of USD 2.4 million a year ago, in spite of lower revenue.

The better bottom line was driven by operational improvements at the company's tower plants and company-wide cost management efforts.

Sales declined 14% year-on-year to USD 42.6 million due to lower steel prices and lower demand in the Gearing segment from oil and gas and mining customers, the Illinois-based company said today. At the Towers and Weldments segment sales fell to USD 38 million from USD 42.9 million, mainly as a result of USD 5.5 million in lower steel and other material costs. Gearing sales dropped to USD 4.6 million from USD 7.2 million.

Broadwind ended the quarter with an order backlog of USD 204.2 million, a significant increase from USD 130.7 million a year ago. Net new orders more than doubled to USD 27.5 million. Of that, USD 25.3 million came from the Towers and Weldments unit, where, the company said, orders vary considerably from quarter to quarter.

"We are focused on securing remaining orders for 2017, continued cost management efforts and making additional gains in operational efficiencies," said Broadwind chief executive Stephanie Kushner. She added that the production mix for the fourth quarter was less favorable and the company expected to earn about USD 500,000 on revenue of USD 44 million to USD 46 million.

Kushner also said that the expansion of the company's Abilene tower facility was on target and would be completed in the middle of 2017, increasing the plant's capacity by 30%.

Net profit in the third quarter was USD 872,000, against a loss of USD 7.6 million in the same period of 2015.

In the first nine months of the year, the company made a net profit from continuing operations of USD 929,000, versus a loss of USD 1.5 million a year ago. Sales declined to USD 132.7 million from USD 161.6 million.

(USD 1.0 = EUR 0.916)

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