Nasdaq-listed Broadwind Energy Inc. suffered from the slowdown in the wind energy industry in the United States, reporting a decline in its third quarter revenues.
Revenues for the third quarter of 2009 went down to $59.5 million from $63.7 million in the third quarter of 2008. The company attributes the revenue decline to lower shipments of wind turbine gearing systems from its products segment.
However, lower revenues were partially offset by the increased sales of wind turbine structural towers, brought by a capacity expansion during the first quarter of the year.
Third quarter revenues for Broadwind’s services segment, which provides technical service, logistics, and precision repair and engineering for wind energy customers, slid to $11.8 million from $13.5 million in same period last year. The decrease was due to a decline in maintenance and repair contracts completed in the current quarter.
Net loss for the third quarter was $4.9 million, which reflected the lower operating expenses incurred. Both the products and services segments reported lower operating losses compared with the third quarter of the previous year, with the products segment registering a $700,000 operating loss versus a $1 million operating loss in 2008.
The services segment’s operating income broke even during the third quarter versus a $400,000 operating loss, brought about by reduced operating expenses.
“Since late 2008, we have been significantly impacted by a slowdown in our industry caused by reduced capital availability to fund new wind farm developments,” said J. Cameron Drecoll, chief executive of Broadwind Energy.
However, Mr. Drecoll is optimistic of the market’s recovery in 2010. “We are seeing early signs that capital is again flowing into wind energy project developments,” he noted.
Based in Naperville, Illinois, Broadwind is an independent, horizontally integrated provider of products and services for the North American wind market.
Slowdown in wind market causes revenue fall for Broadwind
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