TPI Composites pulls 2020 guidance, to test Newton associates

US composite wind blades maker TPI Composites Inc (NASDAQ:TPIC) today withdrew its financial guidance for 2020 due to the COVID-19 pandemic and its impact on the company’s manufacturing operations.

TPI said it cannot accurately forecast or quantify the full duration and financial magnitude of the impact of the health crisis at this point. The company is pulling even the revised guidance from earlier this month regardless of the current customer demand, which it described as “strong.”

An updated on the impact of the coronavirus situation on its liquidity, business operations, financial condition and results of operations will be provided when the company announces its results for the first quarter of 2020, it added.

In February, TPI made a forecast for adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) between USD 100 million (EUR 92.7m) and USD 125 million in 2020. In early April, it said that due to the virus outbreak it saw that figure to be at the lower end of the guidance.

Also today, TPI announced it will work together with the state of Iowa to test for COVID-19 all of its associates that are located in Newton. The company will voluntarily pause production there until the middle of next week to conduct another deep clean of the facility and implement the testing plan.

TPI’s associates will be paid during the production pause, it noted.

(USD 1.0 = EUR 0.927)

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