The wind industry is suffering through a tough first half of 2010, and Broadwind Energy
Second-quarter earnings were tough, but show signs of improvement. Revenue was $36.6 million, up 65% sequentially on increased wind-turbine construction. Net loss reached $14.2 million, including a $4.6 million non-cash charge. The adjusted EBITDA loss was less than half of the first quarter's, checking in at $4 million. That's not exactly a blowout quarter, but it still looks much better than the start of the year.
The hope for coming quarters lies in Broadwind’s extremely low capacity utilization. In May, the company reported less than 40% capacity utilization in towers, gearing, and logistics. Although management said this improved throughout the quarter, it’s still below what investors should expect, and it leaves a lot of room for improvement.
We’ve been hearing about “hope for the second half” from Broadwind customers General Electric
I’m not getting too worked up over the wind industry's second-quarter numbers. It’s taken time to digest weaker credit markets and a changing energy landscape. Heck, even superstar American Superconductor
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