January 22 (Renewables Now) – US wind industry supplier Broadwind (NASDAQ:BWEN) today reported a close to 19% year-on-year drop in fourth-quarter revenue, on a preliminary basis, and made projections for the first half of 2021.
The company, which makes industrial gears and gearboxes, among other specialised components, said it expects to post a total revenue of about USD 40 million (EUR 32.9m) for the final quarter of 2020, which compares to USD 49.3 million in the same period of 2019.
Total non-GAAP adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) are seen in the range of USD 0.1 million to USD 0.3 million. A year earlier, the figure amounted to USD 1.8 million.
Broadwind blamed the declines on a delay in the delivery of a tower order to a new wind turbine customer, weaker revenue performance within the Gearing division and continued supply chain disruptions. The company said it ended the year with USD 3 million of cash on hand and USD 1 million drawn under its asset-based revolving credit line.
In January-June 2021, Broadwind expects to generate a total revenue of between USD 85 million and USD 90 million and register a total non-GAAP adjusted EBITDA of USD 2 million-3 million. To-date, it has booked about half of its full-year 2021 wind tower capacity. This includes some USD 7 million of new wind tower orders bagged this month.
“Recent shifts in the timing of customer orders, together with pandemic-related disruptions to our supply chain and staffing levels, led us to revise our near-term outlook,” commented president and CEO Eric Blashford. He further said that the company is encouraged by quoting activity levels in its non-wind markets, while in the wind sector it expects to benefit from the one-year extension of the 60% production tax credits (PTC) for existing onshore wind projects.
(USD 1.0 = EUR 0.822)