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Broadwind posts USD-10.9m loss in H1 2018

Author: Ken Teegardin. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic.

July 31 (Renewables Now) - US company Broadwind Energy Inc (NASDAQ:BWEN) today reported a net loss from continuing operations of USD 10.9 million (EUR 9.3m) for the first half of 2018, versus a USD-5.8-million profit a year ago.

The company said the low capacity utilisation in its tower plants, following a near shutdown at the end of 2017, and a goodwill impairment charge of USD 5 million hurt its bottom line. Also, the prior-year result included an income tax benefit of USD 5 million.

Revenues for the six months fell by 33% to USD 66.7 million, mainly due to lower sales in the Towers and Heavy Fabrications division and a lower average sales price on the product mix sold. In the second quarter, wind tower sales were down by USD 10 million, which was in part offset by an increase in sales of gearing and heavy fabrications mainly to oil and gas and mining customers.

Tower sales grew by 41% between the first and second quarter of 2018 and tower orders also improved. Still, the company said the impact of steel tariffs has resulted in higher domestic steel prices and some customers have responded by delaying orders or turning to overseas fabricators.

More details are available in the table.

Results in USD million H1 2018 H1 2017 Q2 2018 Q2 2017
Revenue 66.7 99.4 36.8 43.4
Net profit (loss) from cont. operations (10.9) 5.8 (6.1) (0.7)
Adj. EBITDA 0.5 5.9 2.1 2.0

At the end of June, the total backlog stood at USD 117.7 million, compared to USD 136.3 million at end-March.

(USD 1 = EUR 0.85)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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