Citing a weakness in the wind sector, Dallas-based Trinity Industries noted in an earnings release that the company plans to reposition resources away from wind turbine tower manufacturing.
"During the second half of 2012, we are repositioning a portion of our production capacity to meet the growing demand for products serving the oil, gas and chemicals industries," says Timothy R. Wallace, Trinity’s chairman, CEO and president. "These products are well aligned with our core competencies. The repositioning will include, among other things, the conversion of certain facilities from manufacturing wind towers to railcars."
Trinity's Energy Equipment Group - the business unit that includes tower manufacturing - reported revenues of $130.7 million for the quarter ended June 30, compared to revenues of $117.5 million in the same quarter of 2011. The company attributes the increase to higher demand for tank containers and other products, which offset lower structural wind tower shipments.
Operating profit for the second quarter of this year increased compared to the same quarter last year, as the manufacturing challenges that negatively impacted the group’s 2011 results.
The backlog for structural wind towers as of June 30, was approximately $817 million compared to approximately $885 million as of March 31. Approximately $413 million of this backlog is subject to litigation with a structural wind tower customer for the customer’s breach of a long-term supply contract for the manufacture of towers.
Overall, total company revenue grew 45% to $1.02 billion for the quarter and net income increased 126% to $67.8 million.
