Broadwind Energy, Inc. BWEN recently announced that it has completed the divestiture of majority of its Services business assets to RENEW Energy Maintenance, LLC, a subsidiary of RENEW Energy, Inc. Financial terms of the transaction have been kept under wraps.
During the release of third-quarter 2015 results, Broadwind Energy had hinted that its board of directors has approved the decision to dispose its Services business. This business specializes in providing non-routine drivetrain and blade maintenance services as well as offers comprehensive field services to the wind industry. The divested business contributed nearly 4% to the company’s revenues in first-half 2015.
Broadwind Energy is engaged in providing products and services to energy, mining, and infrastructure sector in the U.S. The company expects the sale of its Services business to help it better align its operations with current market demands as well as optimally use its resources for the existing core gearing and towers & weldments operations.
Last quarter, Broadwind Energy recorded net loss from continuing operations of 16 cents per share; while its revenue of $50 million declined 10% from the year-ago tally of $55.3 million. The top-line weakness was triggered primarily by reduced tower production. Net orders booked were $12.2 million, down from $60.8 million in the year-ago quarter. Total backlog was $128 million, exiting the quarter.
Currently, Broadwind Energy has a market capitalization of $31 million. Better-ranked companies in the same sector include Encore Wire Corp. WIRE, Unifi Inc. UFI and John Bean Technologies Corporation JBT. While Encore Wire sports a Zacks Rank #1 (Strong Buy), both Unifi Inc. and John Bean Technologies carry a Zacks Rank #2 (Buy).
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