Broadwind Energy Inc (NASDAQ:BWEN) in the third quarter (Q3) of 2017 turned to a net loss from continuing operations of USD 2.0 million (EUR 1.7m) as revenues from the Towers and Weldments segment plunged.
The US wind industry supplier said today total revenues for the period fell to USD 29.6 million from USD 42.6 million a year ago, after Towers and Weldments revenue dropped to USD 16 million from USD 38 million. The division produces fabrications for wind, oil and gas, mining and other industrial applications, specialising in wind turbine towers. Demand fell as customers reduced purchases in order to draw down component inventories.
“The fourth quarter should represent our low point for towers,” said CEO Stephanie Kushner, adding that consolidated revenues then are seen to stand at USD 20 million. The company is also guiding for negative Q4 earnings before interest, tax, depreciation and amortisation (EBITDA) of between USD 2 million and USD 3 million.
Revenues are to begin to rebound in early 2018, growing to USD 30 million in the first quarter and surpassing USD 40 million in the second quarter.
Details on the company’s performance in the third quarter are in the table.
| All in USD million |
Q3 2017 |
Q3 2016 |
| Net profit (loss) from continuing operations |
(2.0) |
1.2 |
| Towers and Weldments segment net profit (loss) |
(0.9) |
2.8 |
| Non-GAAP adjusted EBITDA |
0.86 |
3.26 |
| Towers and Weldments adjusted EBITDA (loss) |
0.155 |
5.15 |
| Sales |
29.6 |
42.6 |
| - of which Towers and Weldments |
16.0 |
38.0 |
| - of which Gearing |
7.6 |
4.6 |
| - of which Process Systems |
6.1 |
|
In the first nine months of 2017 net profit included a USD-5.1-million income tax benefit and amounted to USD 3.75 million from continuing operations, up from USD 929,000. Revenue declined to USD 129.0 million from USD 132.7 million.
Broadwind booked USD 17.7 million of net new orders in the third quarter, down from USD 27.5 million a year ago. Orders in the Towers and Weldments segment plunged to USD 1.8 million, Gearing segment orders stood at USD 10.6 million, due to recovery in the oil and gas industry and other factors, and Process Systems segment orders were at USD 5.3 million.
(USD 1 = EUR 0.86)
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Inside a wind turbine tower. Author: stantontcady. License: Creative Commons, Attribution-NoDerivs 2.0 Generic
