Broadwind Energy has lowered its revenue and earnings forecast for the second half of the year because of a decline in turbine tower deliveries as a result of delays in receiving fabricated steel.
The US company’s chief executive Stephanie Kushner said: “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 normalise, we remain confident that plant utilisation will grow late in the year, and into 2019.”
Third quarter revenue guidance is now expected to be $31-32m, compared with $34-36m previously.
Kushner said growth in the company’s heavy fabrications product line and stronger gearing shipments are partially offsetting the impact of the tower business.
Broadwind expects to remain EBITDA positive in the third quarter despite the lower revenue, she added.
Earlier this year, US President Donald Trump imposed tariffs on imported steel.
Image: Broadwind Energy
Broadwind cuts revenue forecast
By EBS