Broadwind Energy Lowers Short Term Outlook
September 05 2018 - 7:00AM
Broadwind Energy, Inc. (NASDAQ: BWEN) today announced that its
short-term outlook for tower deliveries has declined, resulting in
lower second half revenues and earnings. The reduction reflects
slower tower production rates triggered in part by delays in
receiving steel for fabrication. Growth in the heavy fabrications
product line and stronger gearing shipments are partially
offsetting. The Company has reduced its third quarter revenue
guidance to $31-32 million from the $34-36 million previously
communicated.
Stephanie Kushner, President and CEO stated, “The volatile steel
supply situation has been extremely challenging for us. Although
tower orders are firming up for the next several quarters, lead
times for domestic steel have lengthened despite sharply higher
prices, due to the uncertainty regarding available steel imports.
Negotiations with new tower customers have been slow because of the
significant domestic steel price increases, and the widening gap
versus Asian tower imports. As trade flows normalize, we remain
confident that plant utilization will grow late in the year, and
into 2019.”
Kushner continued, “The performance of our gearing business has
improved significantly, due to better inflow of materials, improved
scheduling and higher labor productivity. Order intake remains
robust, not only for oil and gas customers but in mining and wind
as well. Through the end of August, Gearing orders totaled $33
million, up 20% from 2017, with a book-to-bill of approximately
1.4. Due to the improving outlook for Gears, we expect the Company
to remain EBITDA positive in the third quarter despite the lower
revenue.”
About Broadwind Energy, Inc.Broadwind Energy
(NASDAQ: BWEN) is a precision manufacturer of structures, equipment
and components for clean tech and other specialized applications.
From gears and gearing systems for wind, oil and gas and mining
applications, to wind towers and industrial weldments, we have
solutions for the clean tech, energy and infrastructure needs of
the future. With facilities throughout the U.S., Broadwind Energy's
talented team is committed to helping customers maximize
performance of their investments—quicker, easier and smarter. Find
out more at www.bwen.com
Forward-Looking StatementsThis release contains
“forward looking statements”—that is, statements related to future,
not past, events—as defined in Section 21E of the Securities
Exchange Act of 1934, as amended, that reflect our current
expectations regarding our future growth, results of operations,
financial condition, cash flows, performance, business prospects
and opportunities, as well as assumptions made by, and information
currently available to, our management. Forward looking statements
include any statement that does not directly relate to a current or
historical fact. We have tried to identify forward looking
statements by using words such as “anticipate,” “believe,”
“expect,” “intend,” “will,” “should,” “may,” “plan” and similar
expressions, but these words are not the exclusive means of
identifying forward looking statements.
Our forward-looking statements may include or relate to our
beliefs, expectations, plans and/or assumptions with respect to the
following: (i) state, local and federal regulatory frameworks
affecting the industries in which we compete, including the wind
energy industry, and the related extension, continuation or renewal
of federal tax incentives and grants and state renewable portfolio
standards; (ii) our customer relationships and our substantial
dependency on a few significant customers and our efforts to
diversify our customer base and sector focus and leverage
relationships across business units; (iii) our ability to continue
to grow our business organically and through acquisitions; (iv) our
production, sales, collections, customer deposits and revenues
generated by new customer orders and the resulting cash flows; (v)
the sufficiency of our liquidity and alternate sources of funding,
if necessary; (vi) our ability to realize revenue from customer
orders and backlog; (vii) our ability to operate our business
efficiently, manage capital expenditures and costs effectively, and
generate cash flow; (viii) the economy and the potential impact it
may have on our business, including our customers; (ix) the state
of the wind energy market and other energy and industrial markets
generally and the impact of competition and economic volatility in
those markets; (x) the effects of market disruptions and regular
market volatility, including fluctuations in the price of oil, gas
and other commodities; (xi) the effects of the change of
administrations in the U.S. federal government; (xii) our ability
to successfully integrate and operate the business of Red Wolf
Company, LLC and to identify, negotiate and execute future
acquisitions; and (xiii) the potential loss of tax benefits if we
experience an “ownership change” under Section 382 of the Internal
Revenue Code of 1986, as amended; and (xiv) the impact of future
sales of our common stock or securities convertible into our common
stock on our stock price. These statements are based on information
currently available to us and are subject to various risks,
uncertainties and other factors that could cause our actual results
to be materially different from the forward-looking statements
including, but not limited to, those set forth under the caption
“Risk Factors” in Item 1A of our Annual Report on Form 10-K for the
year ended December 31, 2017 and in subsequent filings, including
the amended and restated risk factors set forth under the caption
‘Risk Factors” in Item 1A of the Quarterly Report on Form 10-Q for
the quarter ended June 30, 2018. We are under no duty to update any
of these statements. You should not consider any list of such
factors to be an exhaustive statement of all of the risks,
uncertainties or other factors that could cause our current
beliefs, expectations, plans and/or assumptions to change.
BWEN INVESTOR CONTACT: Joni Konstantelos, 708.780.4819 joni.konstantelos@bwen.com
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