In its quarterly earnings, Cicero, Ill.-based Broadwind Energy says it will begin to evaluate strategic alternatives for its service business, which provides ‘non-routine’ blade maintenance, drivetrain and field services to the wind industry.
‘After much consideration, we have decided to evaluate strategic alternatives for our services business,’ says Peter Duprey, Broadwind's president and CEO. ‘The wind services industry is becoming increasingly consolidated, and the operational synergies with the rest of Broadwind appear limited. Our services management team and employees will work with our customers to conduct business as usual during the strategic review period.’
The news comes after disappointing results for the services unit. Broadwind says revenue for the services segment fell 23% to $2.7 million for the quarter ended June 30 compared to $3.5 million in the second quarter of last year, due to weak demand for turbine blade repairs and lower shop activity. The services segment's operating loss totaled $1.8 million, compared to $1.3 million in the second quarter of 2014, due to lower volumes and inventory charges of $400,000 to the consolidation of gearbox shops.
Broadwind, which also sells to the mining, steel, and oil and gas industries, posted a 5% sales decline of $65.2 million compared with $68.4 million last year, due mainly to weak demand. Net income fell 16% to $1.6 million, compared to $1.9 million in the same quarter of last year.
