(Broadwind Energy story updated for pre-market trading on Tuesday)
NEW YORK (TheStreet) -- U.S. wind turbine maker Broadwind Energy (BWEN) - Get Report announced after the close on Monday that Danish wind power bellwether Vestas was moving ahead with an order for 90 turbines at a Wisconsin wind power project.
If the deal with Vestas was good news for Broadwind Energy, that doesn't mean that it was
news. Broadwind shares, which are down close to 80% this year, rose by 11%, or 19 cents, after the close on Monday. During Tuesday morning's pre-market session, Broadwind shares rose by another 8%, or 14 cents.
Broadwind Energy's Tower Tech Systems subsidiary was selected as the supplier of wind towers for the Glacier Hills Wind Park project in Wisconsin.
The agreement to supply the Glacier Hills Wind Park with Broadwind turbines was first announced in June, and received coverage across the eco-blogosphere and within the Midwestern daily press. At that time, Tower Tech Systems president Paul Smith gave several interviews to the press about the Vestas deal for the Glacier Hills Project.
Additionally, while any business win is good news for Broadwind, Vestas and the Broadwind subsidiary Tower Tech Systems already have a multi-year agreement in place.
On Monday, Bjarne Hansen, president of Vestas Towers, said in a release about the project, "Broadwind is the strategic supply partner to Vestas and with its new and upgraded facilities, it made the selection of Tower Tech as the supplier to the WE Energies project very natural."
Broadwind has a plant in the Glacier Hills project's home state of Wisconsin. Transportation of wind turbines can be costly given their size, which helps the case for using a manufacturing plant located near a project. There were no specific home-state requirements for the WE Energies project.
Vestas has its own U.S. wind turbine plant in Pueblo, Colorado.
Including the new Vestas order, plus other business booked during November, Broadwind said it has increased its backlog to approximately $245 million, which is approximately 17% above its backlog as of Sept. 30.
Overall conditions in the wind power market, though, remain challenging. Vestas itself recently announced a profit outlook for 2011 that disappointed the market, and showed that even after mass layoffs and operations streamlining, the wind power bellwether wouldn't be growing its profits next year.
JPMorgan, the only Street firm with coverage of Broadwind Energy, recently reduced its rating to a sell.
Meanwhile, there has been increasing focus on the offshore wind market as the terrestrial wind market business remains a struggle.
recently announced financial backing for an offshore wind power transmission system. Just last week, the first major offshore wind project in the United States received a key approval from the state of Massachusetts.
Questions about the Vestas deal announcement on Monday, following its coverage in the press during the early summer, were referred to Broadwind Energy spokesman John Segerich, who didn't immediately respond.
-- Written by Eric Rosenbaum from New York.
>To contact the writer of this article, click here:
>To follow the writer on Twitter, go to
>To submit a news tip, send an email to: