(RTTNews) - Wind turbine manufacturer Clipper Windpower Plc (CWP.L: News ) Wednesday reported a narrower loss for the first-half, as it sold more turbines and generated significantly higher revenues year-over-year. Clipper Windpower shares are currently trading above 7% on the London Stock Exchange.

Pre-tax loss for the half-year was $120.20 million, narrower than $211.74 million in the previous year.

Net loss was $120.20 million or $0.92 per share, narrower than $211.18 million or $1.84 per share in the year-earlier period.

According to the company, the loss is primarily due to $68 million of expenses attributable to previously identified remediation programs, compared to $139 million last year, and lower than expected sales due to customer deferral of turbine commissioning. Deferred sales are estimated to provide $36 million of gross margin.

London-based Clipper's revenues more than doubled to $357.26 million from $156.09 million in the prior year. The company sold 127 turbines or 317.5 megawatts during the period, compared to 46 turbines or 115 MW a year ago.

Administrative expense for the period decreased to $18.33 million from $27.74 million, primarily due to lower litigation related expenses and professional fees.
At June 30, inventories totaled $456.0 million compared to $557.4 million at December 31, 2008. The $101.4 million decrease primarily results from revenue recognized on 127 turbines sold and a $30 million reduction in component inventory.

Looking ahead, for the full year, Clipper expects revenues to be about $750 million from about 260 turbines or 650 MW delivered. Turbine production and deliveries for 2009 have been reduced by the deferral of 130 turbine shipments from 2009 to 2010/2011. The deferral of shipments negatively impacts anticipated margins for 2009 by $94 million. The company said no customer orders have been cancelled.

Looking forward to 2010, the company expects improvement in margins through higher contracted pricing and lower component costs leading to positive operating income.

CWP is currently trading at 70 pence per share, up 7.94%, on the London Stock Exchange.

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by RTT Staff Writer

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