Broadwind raises revenue alarm
Improved showing in tower unit fails to offset downward earnings revisions
Broadwind Energy expects its fourth quarter and full-year 2017 results to be below previous expectations, despite improvements in the company's tower business unit.
Preliminary results show fourth quarter revenue at $18m, some $2m lower than expected, Broadwind said.
The company's earnings loss is now projected to be between $3.5m and $3.7m, compared with a previous estimate of $2–3m provided in October.
The revisions have been made in light of "weak CNG sales and lower gearing shipments caused by delayed material receipts due to a tightening of the oil and gas supply chain", Broadwind said.
But, chief executive Stephanie Kushner said Broadwind's tower business is improving "capacity utilization".
She said the company is "actively bidding on tower contracts with multiple customers" which would supplement the "baseload of approximately $50m in 2018 shippable backlog" booked in 2016 under a multi-year contract.
The improved showing for towers means the company expects first quarter revenue in 2018 to be $28-30m, rising to $40m in the second quarter.
Earnings are expected to return to the black in 2018, she added.
The full-year results will be released on 27 February.
Image: Broadwind Energy