in News Departments > New & Noteworthy
print the content item

Chicago-based Broadwind Energy reported revenue increases and improved its net loss for 2012. However, the tower, gear and services provider attributed sharp fourth quarter declines to the expiration of the production tax credit (PTC) as developers put projects on hold awaiting a resolution of the key wind incentive.

For the year, sales increased 13% to $210.7 million, reflecting growth in all operating segments. Broadwind also narrowed its net loss from continuing operations to $17.9 million, compared to a net loss of $20.7 million loss reported in 2011.

Broadwind reported sales of $44.9 million for the fourth quarter of 2012, an 18% decrease compared to $55.1 million in the fourth quarter of 2011. Broadwind notes that the PTC deadline accelerated shipments earlier in the year.

Broadwind's net loss for the quarter widened to $5.9 million, compared to a loss of $5.7 million in the same period in 2011. The company attributes the net loss increase to increased amortization expenses.

Broadwind says uncertainties due to the PTC expiration made for a difficult 2012.

"In the fourth quarter, (the) towers segment operations were particularly challenged by deliveries accelerating ahead of the PTC expiration and then falling off sharply as year-end approached," says Peter C. Duprey, Broadwind's president/CEO.

However, with the PTC's extension and a favorable ruling from the International Trade Commission, the company expects demand to rebound. In fact, the company recently announced a $27 million tower order from an undisclosed wind turbine manufacturer.

"We see strong near-term demand for towers, as some of the market uncertainty has been removed," says Duprey. "As a result, we now expect higher productivity in towers in 2013 than last year, which, combined with benefits from our restructuring initiatives, should drive significant expansion in our 2013 gross margins."


Trachte Inc._id1770
Latest Top Stories

Senate Passes Tax Extenders Bill With Wind PTC Extension

The legislation, which passed in the U.S. House earlier this month, will renew the critical production tax credit through the end of 2014 - giving developers only about two weeks left to start construction.


Transmission Study Shows Nebraska Could Handle A Lot More Wind Power

A new report released by the Nebraska Power Review Board finds that the state already has enough infrastructure to accommodate at least 2 GW of additional wind generation.


Can Wind Energy And Birds Coexist? Environmental Group Says Yes

The Environmental Defense Fund, a supporter of responsible wind energy development, points out ways to help mitigate impacts of turbines on birds and bats.


Another Study Finds Wind Turbines Do Not Affect Nearby Property Values

Research conducted by the University of Guelph focused on regions in Ontario, and the conclusion echoes that of previous studies.


Too Little, Too Late? U.S. House Approves Wind PTC Extension

The U.S. House of Representatives has passed a tax extenders package that would renew the wind production tax credit (PTC) and about 50 other expired tax breaks through 2014. The wind industry argues the short-term fix is virtually no fix at all.

Hybrid Energy Innovations 2015