Demand for wind turbine towers helped push Broadwind operating income in its heavy fabrications business segment back into the black in the first quarter of 2020, compared with the same period last year.
Operating income in heavy fabrications grew to $3.5m, up from a loss of $0.3m, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 350% to $4.5m from $1m. Sales increased 36% to $38.4m.
In the company’s gearing segment, sales declined 38% to $6.2m in the first three months of the year from $10m in 2019.
EBITDA declined by $1.7m to $0.3m, and the segment made an operating loss of $0.3m, compared with income of $1.3m last year.
Broadwind said the fall was driven by lower sales across each major end-market, as the emergence of Cvod-19 and deteriorating oil prices, led customers to temporarily postpone purchasing activity.
Overall, for the three months ended 31 March, the company reported total sales of $48.6m, an increase of 16.7% compared to the prior-year period.
EBITDA was $3.6m in the first quarter 2020, compared with $1.7m in 2019.
Broadwind chief executive Eric Blashford said: “Our first quarter results reflect significant year-over-year growth in both revenue and margin capture, resulting in a return to profitability in the period.
“Due to our ongoing customer diversification efforts, our order book improved materially across each of our reporting segments during the first quarter, while total backlog increased by more than 50% on a year-over-year basis, given increased demand for our wind tower, gearing and industrial fabrication product lines.
“We sold more than 300 wind tower sections in the first quarter, an increase of more than 65% compared to the prior-year period.
“Improved plant utilisation contributed to a significant expansion in segment operating margin the first quarter, when compared to the year-ago period.
“During March, we entered into a new supply relationship with a large global wind turbine manufacturer.
“With the addition of this customer, Broadwind expects to supply tower sections to three of the top four global wind tower OEMs in 2020 serving the US market, positioning us as a key participant in the development of clean energy-producing infrastructure.
“Looking ahead, offshore wind remains an emerging growth opportunity for us, one where our precision manufacturing expertise and deep industry knowledge position us to capitalise on increased global investment in sustainable energy sources.”