February 27 (Renewables Now) - US company Broadwind Energy Inc (NASDAQ:BWEN) on Tuesday reported an adjusted EBITDA loss of USD 1.7 million (EUR 1.5m) for the last quarter of 2018, narrowing from USD 4 million a year back.
The improvement in earnings before interest, tax, depreciation, amortisation, share-based payments, restructuring costs and impairments (adjusted EBITDA) came as a result of the Gearing and Towers and Heavy Fabrication units' better performance.
The firm’s Towers and Heavy Fabrications segment specialises in the production of wind turbine towers. In Gearing, Broadwind engineers, builds and remanufactures precision gears and gearboxes, while in the Process Systems division it designs and manufactures custom, modular systems for compression, filtration and other process applications.
Broadwind closed the fourth quarter of 2018 with a net loss of USD 12.4 million, expanding from USD 7 million a year before due to a non-cash write-down of customer intangibles related to the acquisition of Red Wolf Company, a producer of industrial systems for the gas turbine market. Revenues grew by 53% to USD 27.2 million, helped by a rise in sales at the Towers and Heavy Fabrication and Gearing units. New orders in the three months were up 36% to USD 16.7 million, with those in the Towers and Heavy Fabrications division at USD 2.4 million.
Further details on Broadwind’s performance in the fourth quarter and full 2018 are available in the table.
|Amounts in USD millions||Q4 2018||Q4 2017||2018||2017|
|- of which Towers and Heavy Fabrications||10.7||4.2||68.8||103.4|
|- of which Gearing||10.9||8.5||38.4||26|
|- of which Process Systems||5.6||5.1||18.3||17.4|
|Operating profit (loss)||(12.2)||(6.7)||(25.1)||(7.4)|
|- of which Towers and Heavy Fabrications||(2.8)||(4.5)||(4.3)||2.7|
|- of which Gearing||0.99||(0.07)||0.05||(2.6)|
|- of which Process Systems||(8.9)||(0.5)||(16.4)||(2.3)|
|Net profit (loss)||(12.4)||(7)||(24.1)||(3.6)|
|Profit (loss) from cont. operations||(12.4)||(6.9)||(24)||(3.2)|
Broadwind’s CEO Stephanie Kushner said that the company has a healthy backlog and is expected “to capitalise on strong second half results and deliver solid profit margins in 2019.” Its tower business, in particular, is recovering and capacity utilisation is rising but margins remain under pressure due to the imports of towers using cheaper Asian steel.
The company expects to book quarterly revenues of or above USD 40 million for 2019 and an average EBITDA of about USD 2 million. First-quarter EBITDA is seen at USD 1 million-1.5 million.
(USD 1.0 = EUR 0.878)