Broadwind Energy reduces loss in Q3 2011 as revenues grow 41%

Nov 7, 2011 - Broadwind Energy Inc (NASDAQ:BWEN), the US wind industry supplier, on Friday reported a narrower loss for the third quarter of 2011 as sales increased 41% year-on-year to USD 47.9 million (EUR 35m).

Net loss from continuing operations shrank to USD 6.6 million in the quarter from USD 7.3 million a year ago, with the improvement being held back by restructuring expenses and higher legal costs. Broadwind said it had launched a restructuring plan to lessen its footprint by 30% by end-2012 and cut fixed costs. It expects USD 6 million in annual savings from the plan, which is to affect mainly its gearing unit.

The company recorded negative non-GAAP adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), excluding stock-based compensation and restructuring effects, of USD 1.5 million versus USD 2.8 million a year earlier.

The increase in third-quarter sales was driven by an 82% rise in services revenues to USD 6.6 million and higher sales in the wind towers segment of USD 29.7 million against USD 17.3 million a year earlier. The wind towers business, however, saw its non-GAAP adjusted EBITDA rise more slowly than revenues, which Broadwind said reflected higher pricing pressures in the industry and lower productivity due to manufacturing a new tower design.

(USD 1 = EUR 0.730)

Choose your newsletter by Renewables Now. Join for free!