Broadwind Energy 3Q sales drop 10 percent on weak gear demand

CICERO - Broadwind Energy reported sales for the third quarter of 2015 were down 10 percent as demand for gearing and tower projects weakened.

Sales for the quarter were $49.8 million, compared to $55.3 million in the third quarter of 2014. The company reported a net loss from continuing operations of $2.4 million or 16 cent per share in the quarte, compared to a net loss of $1.1 million or 7 cents per share in Q3 2014.

"Broadwind experienced another tough quarter due in part to production issues in our towers business and continued weakness in sales to oil and gas and mining customers," said Broadwind President and Chief Executive Officer Peter Duprey. "We have worked through the steel supplier quality issues, and tower production in Manitowoc is now approaching normal levels."

Duprey said the company's board of directors authorized a plan to divest the Services segment, which he anticipates will be sold by the end of the year.

"We continue to manage expenses judiciously, and our inventory balances dropped as expected during the quarter which freed up $5 million of cash," he said. "Our estimates for the fourth quarter are tempered as we work through a tower model changeover in the Abilene plant and anticipate continued weakness in the Gearing segment."

He said the company estimates fourth quarter revenue of $44-45 million and an operating loss of $4 million to $5 million.