Broadwind Energy, Inc. (BWEN) is a provider of technologically-valued, precision products to different industries. In the sectors ranging from mining, infrastructure and energy across the United States, the fabricated structural metal manufacturing company provides precision components, equipments and structures to be used in specialized and clean tech initiatives by industries.
The company is likely to be facing difficulties ahead as it recently provided a business update which highlights a troubled third-quarter 2020. The company last month also received an order worth $21 million to provide wind turbines.
The order so received by the company is from an existing wind turbine customer. BWEN is likely to be completing the manufacturing of the same at its Abilene, Texas-based facility. The company is expecting first half to 2021 when it will start delivering manufactured tower sections.
Boradwind had also received a similar order in late April this year. The delivery of tower sections in that $19 million order is likely to be completed in 2021. Moreover an order worth $5 million has also been won by the company in March this year.
In second quarter 2020, the company saw an increase in demand for its wind towers bringing its orders 17% higher to reach $39.6 million. At the end of second quarter, Broadwind’s total backlog was at $112.1 million. The backlog was 12% less than that of previous quarter mostly because of the impact on the timing of customer order caused by the pandemic.
The company also communicated that one of its wind turbine OEM customers has shifted some tower contract to the first quarter of 2021 which were initially planned to be placed in third quarter of 2020.
For the reasons, Broadwind is in believes that up to $2.5 million of its earnings meant to be made in second half of 2020 will be shifted to the first half of 2021. Lower utilization of its plant’s capacity will also be the main reason of that weaker earning. Also the shifting of order to next quarters will be impacting its Q3 2020results adeversly.