Broadwind trims Q3 net loss

Oct 31, 2013 - US wind industry supplier Broadwind Energy Inc (NASDAQ:BWEN) on Thursday said its third-quarter 2013 net loss from continuing operations had narrowed to USD 2.6 million (EUR 2m) from USD 3.9 million a year ago.

Loss per share was USD 0.18, compared to USD 0.28. The company explained that the reduced deficit was the result of improved performance at the operating level at the towers and weldments division, which managed to compensate for a fine of USD 1.5 million for the gearing segment related to a long-standing environmental investigation.

Gross margin surged by 390 basis points to 9.1%.

Broadwind’s non-GAAP adjusted earnings before interest, tax, depreciation, share-based payments and restructuring expenses (EBITDA) climbed to USD 2.6 million from USD 2.4 million in July-September 2012. The towers and weldments segment saw its adjusted EBITDA jump to USD 7.8 million from USD 3.1 million a year before thanks to rising volumes, better operating efficiencies and a less variable and more profitable mix of towers when compared to the third quarter of the previous year

Revenue for the reporting period grew by 13% year-on-year to USD 62.4 million. It surpassed the firm’s expectations after record tower sales.

More specifically, towers and weldments sales in the third quarter amounted to USD 48.7 million, up from USD 37.4 million as a result of stable demand from Broadwind's growing customer base. The segment’s revenues also included USD 4.4 million from the sale of a new tower design. Sales at the gearing segment contracted by 8% to USD 10.4 million and revenue from the services unit nearly halved to USD 3.7 million.

During the three months to September 30, Broadwind secured USD 87 million of orders, including USD 70 million in wind tower contracts. Its order book at the end of the quarter amounted to USD 167 million.

(USD 1 = EUR 0.734)

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