Article

Broadwind loses $4.4M in 2nd quarter; But sales up 17 percent from last year

Broadwind, based in Illinois, began Abilene operations in 2008 and receives financial incentives from the Development Corp. of Abilene, which allocates the city's half-cent sales tax for economic development projects. The DCOA has pledged up to $7.3 million to the company.

Broadwind Energy, which makes wind towers in Abilene along with operating a separate maintenance facility, reported Friday a net loss of $4.4 million from continuing operations in its second-quarter earnings announcement.

But the company noted that sales of $39.3 million were up 17 percent compared with the second quarter of last year.

Broadwind, based in Illinois, began Abilene operations in 2008 and receives financial incentives from the Development Corp. of Abilene, which allocates the city's half-cent sales tax for economic development projects.

The DCOA has pledged up to $7.3 million to the company, with payouts based in part on the number of jobs created in Abilene.

In April and May, 44 positions were cut at the company's tower manufacturing site, according to the DCOA. Before the job cuts, company officials had said there were about 160 workers in Abilene (they declined to confirm the number of job cuts).

A spokesman did not respond to a request for information made Friday about the number of workers the company has in Abilene. After the cuts, a Broadwind spokesman noted a "significant reduction in customer demand for wind towers in the southwestern U.S.,"... more [truncated due to possible copyright]  

Broadwind Energy, which makes wind towers in Abilene along with operating a separate maintenance facility, reported Friday a net loss of $4.4 million from continuing operations in its second-quarter earnings announcement.

But the company noted that sales of $39.3 million were up 17 percent compared with the second quarter of last year.

Broadwind, based in Illinois, began Abilene operations in 2008 and receives financial incentives from the Development Corp. of Abilene, which allocates the city's half-cent sales tax for economic development projects.

The DCOA has pledged up to $7.3 million to the company, with payouts based in part on the number of jobs created in Abilene.

In April and May, 44 positions were cut at the company's tower manufacturing site, according to the DCOA. Before the job cuts, company officials had said there were about 160 workers in Abilene (they declined to confirm the number of job cuts).

A spokesman did not respond to a request for information made Friday about the number of workers the company has in Abilene. After the cuts, a Broadwind spokesman noted a "significant reduction in customer demand for wind towers in the southwestern U.S.," citing "the low price of natural gas and lack of transmission capacity" as reasons for the drop in demand.

Broadwind also makes towers at a Wisconsin plant, and pointed to a 48 percent increase in tower segment revenues as a bright spot in the earnings report.

In February, Broadwind held a dedication for its new gearbox refurbishing facility in Abilene.

The company reported decreases in both gearing sales and revenue from technical and engineering services for the quarter compared with last year, however.

"Our tower business had a 48 percent increase in revenue in a difficult market, and in our gears business, sales to industrial customers exceeded wind customers," said Pete Duprey, company president and chief executive officer, in a news release.

He added: "While we continue to face a challenging wind energy market, we remain focused on the diversification of our customer base and the expansion of our services business where we have strong core competencies."

Shares for the company dropped in trading price Friday from $1.27 to $0.95, according to Yahoo Finance.


Source: http://www.reporternews.com...

AUG 6 2011
http://www.windaction.org/posts/31581-broadwind-loses-4-4m-in-2nd-quarter-but-sales-up-17-percent-from-last-year
back to top