US-based composite wind blades maker TPI Composites Inc (NASDAQ:TPIC) on Tuesday reported a second-quarter net loss of USD 4.1 million (EUR 3.5m), against a profit of USD 9.6 million a year before.
The company explained that its performance in the three months was hurt by a drop in sales, increased cost of goods and capital expenditures. A foreign currency loss and the write-off of debt issuance costs also contributed to the negative result.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined to USD 10.1 million from USD 23 million, with EBITDA margin falling to 4.4% from 9.6%.
Second-quarter sales marked a 3.7% year-on-year drop to USD 230.6 million. Net sales of wind blades decreased to USD 206.4 million from USD 225.8 million, mainly due to a 17.3% drop in the number of wind blades produced as volume was lost following expiration of contracts in Mexico and Turkey and a delayed customer startup.
More details of the company's results can be seen in the table:
| Amounts in USD million |
Q2 2018 |
Q2 2017 |
| Net sales |
230.6 |
239.6 |
| EBITDA |
10.1 |
23 |
| EBITDA margin (%) |
4.4 |
9.6 |
| Adjusted EBITDA |
13.5 |
26.2 |
| Adjusted EBITDA margin (%) |
5.8 |
11 |
| Net profit (loss) |
(4.1) |
9.6 |
| Net profit (loss) per fully diluted share |
(0.12) |
0.28 |
TPI’s president and CEO Steven Lockard noted that the company has entered a multiyear supply agreement with Germany’s Enercon GmbH for two production lines in Turkey and has struck new line additions and contract extensions. Among its most recent deals are those with US conglomerate General Electric (NYSE:GE), Denmark's Vestas Wind Systems A/S (CPH:VWS), Nordex SE (ETR:NDX1) and Spain's Acciona SA (BME:ANA).
“So far this year, with the new agreements, amendments and transitions, we have increased our lines under long-term supply agreements to 50 and increased our potential contract value by USD 2.5 billion to USD 6.4 billion over the terms of the agreements,” he added.
For the full year, TPI confirmed its previous guidance for sales of between USD 1 billion and USD 1.05 billion but cut its EBITDA forecast to USD 65 million-70 million from USD 75 million-80 million due to additional startup and transition costs. Full-year diluted earnings per share are seen at between USD 0.10 and USD 0.14.
(USD 1.0 = EUR 0.861)
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Wind turbine. Author: Luc Legay. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.
