Dallas-based Trinity Industries – a provider of products and services to the industrial, energy, transportation and construction sectors – is reporting an increase in wind tower production due to the extension of the federal production tax credit (PTC).
In its quarterly filing, Trinity says its Energy Equipment Group – the segment that includes wind towers – reported revenues of $152.5 million for the quarter ended June 30, compared to revenues of $130.7 million in the same quarter last year. In the filing, Trinity notes, ‘Orders for structural wind towers, slow since mid-2008, increased in 2013 principally related to the January 2013 renewal of the federal production tax credit.’
Further, its operating profit for the quarter increased to $14.3 million, compared to $4 million in the same quarter last year.
As of June 30, the company notes it has received orders for $22 million of structural wind towers during the quarter, resulting in a backlog for structural wind towers of $642.9 million.
The rebound in tower orders is notable considering that last July, Trinity noted that it was transitioning away from tower production. In fact, Trinity re-purposed tower facilities in Ft. Worth, Texas, and Castanos, Mexico to produce rail tank cars.
However, Trinity continued to build towers in Clinton, Ill., and Newton, Iowa. The company also confirms that it is manufacturing towers in West Fargo, N.D. and Tulsa, Okla. – two sites formerly owned by DMI Industries, which Trinity acquired in Sept. 2012.