Broadwind Energy (BWEN) Reports In-Line Q1 EPS

Broadwind Energy (NASDAQ: BWEN) reported Q1 EPS of ($0.34), in-line with the analyst estimate of ($0.34). Revenue for the quarter came in at $51.1 million versus the consensus estimate of $49.98 million.

Peter Duprey, President and Chief Executive Officer, stated, "During the quarter, we faced three main challenges that contributed to our weak performance: restoring our Abilene tower plant to full capacity, navigating the West Coast port slowdown, and responding to weaker oil and gas and mining end markets. In the Abilene tower facility, we produced 18 fewer towers than in the prior year period, mainly in January and February, but by March the facility was performing near its targeted production rate, signaling that we are back on track in this facility. The West Coast port slowdown required us to produce towers ahead of schedule for which we had materials on hand. We navigated well through this challenge and were able to avoid losing production slots. However, we incurred higher logistics costs and ended the quarter holding more steel than is typical for our Abilene facility and $5 million of towers that will not be invoiced until Q2-Q3. Finally, we are dealing with weak oil and gas and mining demand for gears and weldments, and have reduced headcount and will idle two satellite production facilities to reduce overhead expense by approximately $600,000 per quarter."

Mr. Duprey concluded, "The tower market outlook remains strong for 2016 and we are firming up our order book this quarter. With the operational improvements and cost reductions in place, we expect to have a profitable second quarter on par with Q2 2014."

For earnings history and earnings-related data on Broadwind Energy (BWEN) click here.

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