Advanced Energy expects more cost cutting, earnings growth

Fort Collins-based Advanced Energy Industries Inc. (Nasdaq: AEIS) said Wednesday it will continue cutting expenses even after cost reductions of at least $72 million next year.

“There’s more to be had: We’ve only just started,” Advanced Energy CEO Garry Rogerson said.

Rogerson made the comments at Advanced Energy’s analyst day in New York City, which was also webcast online.

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The event comes on the heels of Advanced Energy’s third-quarter earnings report, in which the company said it had completed a two-year restructuring that included outsourcing of some of its operations to Shenzen, China, and consolidation in Fort Collins. Advanced Energy earned $687,000 during the quarter, down from $5.7 million during the same period a year earlier.

Wednesday, Advanced Energy outlined its growth strategy and highlighted its energy products that showed promise for increased revenue. The company has thin-films and solar segments that led to a combined total of $142.9 million in sales during the third quarter.

The company also announced a three-year goal to achieve $3 growth in earnings per share. Advanced Energy, in part, plans to reach its goal by expanding solar sales in growing markets such as India, Turkey and United Kingdom while cutting back in countries such as Spain and Italy.

“It’s very reasonable to expect that we’ll get to $3 a share the next three years,” CFO Danny Herron told analysts. “We might be as high as $4; we might be as low as $1.50.”

Advanced Energy shares rose 3 percent to $22.82 Wednesday afternoon.