Broadwind Energy’s 2Q loss widens

By Dow Jones Newswires-Wall Street Journal
Posted Aug. 9, 2010 at 7:22 a.m.

Broadwind Energy Inc.’s second-quarter loss widened on myriad charges and year-ago gains while wind-turbine installations stalled in the U.S. The supplier of products and services now sees 2010 revenue of $140 million to $160 million. Analysts polled by Thomson Reuters most recently estimated $206 million on average.

Revenue dropped 30 percent in the second quarter from a year earlier, with Broadwind also blaming “reduced tower and gearing purchases under its key framework agreements.”

The company, focused on the North American wind industry has posted a slew of losses, which have widened in recent quarters as falling revenue has outpaced cost-cutting efforts. But Chief Executive J. Cameron Drecoll said in May he thought the first quarter was the low point in the company’s slump and that it was re-hiring workers and seeing purchase volumes increase.

On Monday, he commented, “We made progress during the second quarter despite continued disappointing industry fundamentals. With announced year-to-date additions to wind farm capacity down 71 percent from last year, we are not yet seeing the broad industry recovery we had anticipated.”

Broadwind posted a loss of $14.2 million, or 13 cents a share, compared with a year-earlier loss of $5.4 million, or 6 a share. Shares outstanding increased 11 percent. The latest period included $4.6 million of charges and the prior year had a $5.1 million gain, both acquisition-related. Revenue fell to $36.6 million while operating expenses edged down 2 percent.

Analysts polled by Thomson Reuters most recently forecast a loss of 10 cents on $40 million in revenue.

The tower segment, Broadwind’s largest by revenue, saw revenue slumped 26 percent but its loss narrow.

Shares closed Friday at $2.85 and didn’t trade premarket. The stock has fallen 65 percent this year.

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