CS Wind reports 45.2 percent jump in second-quarter operating profit

CS Wind, a supplier of wind towers, tower components and bearings, and offshore wind substructures, said its second-quarter operating profit rose 45.2 percent from a year earlier to 86 billion won ($60.6 million), helped by tower operations and stable substructure margins.

Revenue increased 5.6 percent to 686 billion won ($484 million), while net income rose 56.9 percent to 61.1 billion won ($43 million), both in the same year-on-year comparison. CS Wind tied the sales outcome specifically to its tower business, while the offshore wind substructure unit featured in its account of profitability.

CS Wind linked the revenue gain to the high visibility it had over orders at its U.S. corporation, a condition that gave the company scope to increase its production volumes. The increase in output drove solid growth in tower operations during the quarter, the company said. The tower unit was therefore the business at the heart of the reported sales advance.

For operating profitability, CS Wind cited an increased contribution from the tower business, stable production margins at its offshore wind substructure operations and recognized incentives. That explanation differs from its sales account, which centered on U.S. order visibility and higher tower output during the quarter.

Looking ahead, CS Wind plans to stabilize productivity at its Aalborg plant in Denmark as part of an effort to improve cost efficiency.

The company is also seeking new European orders for offshore wind substructures. That commercial target is focused on the unit that maintained stable production margins in the quarter, connecting the company's order plans with one of the businesses it cited in its earnings explanation.