November 8 (Renewables Now) - After reporting a net loss in April-June 2018, US composite wind blades maker TPI Composites Inc (NASDAQ:TPIC) posted a third-quarter (Q3) profit on Wednesday and made some adjustments to its forecasts.
The company reported a net profit of USD 9.5 million (EUR 8.3m) for July-September 2018. While it stood against a loss of USD 4.1 million for the prior quarter, the result more than halved from the USD-21.7-million profit in July-September 2017.
Net sales went up by 0.6% year-on-year to USD 255 million, with net sales of wind blades decreasing to USD 234.9 million from USD 238 million. The decline is attributed to a 19.1% drop in the number of produced wind blades primarily as a result of the increase in lines in transition, the lost volume from two expired contracts, a delayed customer startup and foreign currency fluctuations.
Total billings went down by 6.1% to USD 240.7 million.
“We delivered solid operational and financial performance in the third quarter in which we exceeded our Adjusted EBITDA target,” commented Steven Lockard, TPI Composites’ president and CEO.
More details on TPI’s financial performance are available in the following table.
|Figures in USD (except percentages)||Q3 2018||Q3 2017||9-mo 2018||9-mo 2017|
|EBITDA margin (%)||2.9||10.6||--||--|
|Adj EBITDA margin (%)||6.9||11||--||--|
|Net profit per fully diluted share||0.26||0.62||0.39||1.05|
TPI made some changes to its existing forecasts for 2018 and 2019, and also set preliminary 2020 targets for net sales and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA). More details are available in the table below.
|Figures in USD (except num. of lines)||2018||2019||2020|
|Fully diluted earnings per share||0.32-0.39||1.24-1.35||N/A|
|Dedicated manufacturing lines at year end||51-55||62-65||N/A|
*The company gives a combined value for net sales and total billings for 2019 and 2020.
CEO Lockard blamed the reduction of the 2019 adjusted EBITDA guidance on the company’s updated forecast of eight more lines in transition and nine more lines in startup during 2019 compared to its original forecast.
“We believe these additional investments in increased startups and transitions position us well for our goal of doubling our wind related sales by 2021,” he said.
(USD 1.0 = EUR 0.875)