April 29 (Renewables Now) - US company Broadwind Energy Inc (NASDAQ:BWEN) managed to narrow its first-quarter net loss to USD 1 million (896,200) from USD 4.8 million a year back as sales improved across all of its divisions.
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.
Adjusted earnings before interest, tax, depreciation, amortisation, share-based payments and restructuring costs (adjusted EBITDA) totalled USD 1.7 million, against a loss of USD 1.6 million in the year-ago period. The improvement was achieved mainly thanks to a significant increase in production volumes in the Towers and Heavy Fabrications segment and the better operating performance of Gearing, Broadwind said on Friday.
Sales jumped by 39% to USD 41.7 million, with USD 28.3 million coming from the Towers and Heavy Fabrications segment.
Further details on Broadwind’s first-quarter performance can be seen in the table.
|Amounts in USD||Q1 2019||Q1 2018|
|- of which Towers and Heavy Fabrications||28.3m||18.2m|
|- of which Gearing||10m||8.8m|
|- of which Process Systems||3.3m||3m|
|Operating profit (loss)||(494,000)||(4.5m)|
|- of which Towers and Heavy Fabrications||(222,000)||(2.1m)|
|- of which Gearing||1.4m||(626,000)|
|- of which Process Systems||(285,000)||(301,000)|
|- of which Corporate and other||(1.4m)||(1.5m)|
|Net profit (loss)||(1m)||(4.8m)|
“Capacity utilization at our tower plants is rising, and we expect it to remain strong for the medium term. Margins have been impacted by higher steel prices, but the team continues to deliver operational improvements to help offset this pressure. Our expansion into other heavy fabrications remains paramount, and order activity continues to be strong,” Broadwind’s CEO Stephanie Kushner said.
Net new orders in the first quarter came at USD 24 million, down from USD 28.1 million a year back. Towers and Heavy Fabrications orders were up to USD 12.5 million from USD 9.8 million in the same quarter of 2018.
The company’s total order backlog at the end of March stood at USD 81.1 million, as compared to USD 96.5 million at end-December 2018.
Broadwind guided for EBITDA of between USD 1.3 million and USD 1.8 million in the second quarter of 2019, while revenues are seen to top USD 40 million. The outlook for 2019 EBITDA remains unchanged at USD 8 million.
(USD 1.0 = EUR 0.896)