Broadwind Energy sees 2Q sales decline

CICERO - Despite an increase in its wind tower business, Broadwind Energy's sales in the second quarter of 2015 was down 5 percent as a weak market continued for the company's oil, gas and mining operations.

Sales for the quarter were $65.2 million, $68.4 million in the second quarter of 2014. Net income for the quarter was $1.6 million, or 11 cents per diluted share, compared to $1.9 million or 12 cents per diluted share, during the same period in 014.

Broadwind Towers and Weldments segment revenue was up $2.1 million this quarter, compared to Q2 2014. Operating income was down $1.4 million compared to Q2 2014 because of an unusually high-margin mix of towers in Q2 2014 and because of weaker weldments profitability in Q2 2015.

"Broadwind had a solid second quarter with improved financial performance, despite the impact on our gearing and weldments businesses of the ongoing market weakness from oil and gas and mining customers," said Peter Duprey, President and Chief Executive Officer.

"After much consideration, we have decided to evaluate strategic alternatives for our Services business," Duprey added. "The wind services industry is becoming increasingly consolidated and the operational synergies with the rest of Broadwind appear limited. Our Services management team and employees will work with our customers to conduct business as usual during the strategic review period."

With those consolidations, Duprey expects the company to to have a strong third quarter with projected operating income of $1 million to $2 million.