October 30 (Renewables Now) - US company Broadwind Energy Inc (NASDAQ:BWEN) today said its adjusted EBITDA for the third quarter of 2018 fell by 77% on the year to USD 197,000 (EUR 173,000).
Loss from continuing operations stood at USD 750,000, narrowing from USD 2.05 million a year earlier. The improvement was mainly due to a USD-2.2-million gain from the New Market Tax Credit loan, extinguished during the quarter.
Earnings before interest, tax, depreciation, amortisation, share-based payments, restructuring costs and impairments (adjusted EBITDA) fell to USD 730,000 in the nine months to September 30, from USD 6.7 million a year earlier. This drop was mainly a result of low capacity utilisation in Broadwind’s tower plants, which was in part offset by improved performance of the Gearing segment.
Broadwind chief executive Stephanie Kushner said that because of weak tower shipments, fourth-quarter EBITDA is expected to be a negative USD 1 million-2 million, but in the first quarter of 2019 the company expects positive EBITDA. “We expect to report further progress throughout 2019, as our Towers business enters a stronger market.”
The company expects fourth-quarter revenues of USD 25 million-26 million, which are to go closer to USD 40 million in the first quarter of 2019.
The firm’s Towers and Heavy Fabrications segment serves the wind, oil and gas, mining and other industries and specialises in the production of wind turbine towers. In Gearing, Broadwind Energy engineers, builds and remanufactures precision gears and gearboxes for these same industries and other applications. The other segment of the company is Process Systems, where it designs and manufactures custom, modular systems for compression, filtration and other process applications. Details on Broadwind’s performance, including by segment, are available in the table.
|All in USD million||Q3 2018||Q3 2017||9-mo 2018||9-mo 2017|
|- of which Towers and Heavy Fabrications||17.3||16||58.1||99.2|
|- of which Gearing||10||7.6||27.5||17.5|
|- of which Process Systems||4.2||6.1||12.7||12.3|
|Operating profit (loss)||(2.6)||(1.8)||(12.9)||(0.74)|
|- of which Towers and Heavy Fabrications||(0.76)||(1.5)||(1.5)||7.2|
|- of which Gearing||0.35||(0.4)||(0.9)||(2.6)|
|of which Process Systems||(0.9)||0.1||(7.6)||(1.8)|
|Net profit (loss)||(0.78)||(2.2)||(11.7)||3.3|
|Profit (loss) from cont. operations||(0.75)||(2.05)||(11.6)||3.75|
New orders in the third quarter amounted to USD 19.7 million, growing by 12% year-on-year. This includes USD 11.5 million of Gearing orders, helped by timing of replacement gearing orders from a wind customer.
(USD 1 = EUR 0.88)