Wind blades manufacturer TPI Composites posts net income increase of 65% in first quarter
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TPI Composites, Inc., a manufacturer of composite wind blades with three production facilities in Mexico, reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$ 21.0 million in its financial results for the first quarter ended March 31, 2018. The figure represents a 44.8% increase compared to US$ 14.5 million during the same period in 2017.
Net income for the quarter was US$ 8.6 million, up 65% compared to US$ 5.2 million in the same period in 2017.
The EBITDA margin increased to 8.3% compared to 7.0% in the 2017 period. Adjusted EBITDA for the quarter increased to US$ 27.4 million compared to US$ 17.6 million during the same period in 2017. The Adjusted EBITDA margin increased to 10.8% compared to 8.4% during the same period in 2017.
“So far this year, we have signed supply agreements for a total of five lines representing potential contract revenue of up to US$ 1.2 billion over the terms of the agreements. These include four manufacturing lines with Vestas, with an option for additional lines, in a new manufacturing hub in Yangzhou, China and an additional line with Vestas in Izmir, Turkey,” said Steven Lockard, TPI Composites’ President and Chief Executive Officer.
Net sales for the quarter increased by US$ 45.4 million or 21.7% to US$ 254.0 million compared to US$ 208.6 million in the same period in 2017. Total billings increased by US$ 12.3 million or 5.8% to US$ 223.7 million for the three months ended March 31, 2018 compared to US$ 211.4 million in the 2017 period.
Net sales of wind blades were US$ 234.2 million for the quarter as compared to US$ 195.7 million in the same period in 2017. The increase was primarily driven by higher average sales prices due to the mix of wind blade models produced during the quarter compared to the same period in 2017.
This was partially offset by a 10.5% decrease in the number of wind blades produced during the quarter compared to the same period in 2017. The favorable impact of the currency movements on consolidated net sales was 3.4% and on total billings was 3.9% for the quarter.
Total cost of goods sold for the quarter was US$ 225.7 million and included aggregate costs of US$ 14.7 million primarily related to startup costs for new plants in Turkey and Mexico and for a new customer, Senvion, in Taicang, China. This compares to total cost of goods sold of US$ 188.7 million for the same period in 2017, including aggregate costs of US$ 6.2 million related to startup costs for new plants in Turkey and Mexico.
TPI operates three manufacturing plants in Juarez, Chihuahua. The company also plans to open a fourth facility in Matamoros, Tamaulipas, which is expected to start production in the first half of 2018.