Zacks_Analysts' Blog : Energy Conversion Signs New Deal - Analyst Blog

Early yesterday, Michigan-based Energy Conversion Devices, Inc. (ENER) declared that it has signed a multi-year supply agreement with Johns Manville, a Berkshire Hathaway (BRK.A) company. Energy Conversion will supply its UNI-SOLAR laminates for commercial roofs to Johns Manville.

The deal is mutually beneficial. For Energy Conversion, this increases its exposure in the rooftop solar technology apart from increasing its order backlog. The company will also be able to tap into Johns Manville’s customer base spread across the industry segments aerospace, automotive and transportation, air handling, appliance, HVAC, pipe and equipment, filtration, waterproofing, building, flooring, interiors and wind energy. For Johns Manville, this will facilitate its entry into the field of solar energy.

Johns Manville is a prominent manufacturer and marketer of premium-quality products for building insulation, mechanical insulation, commercial roofing and roof insulation, apart from fibers and nonwovens for commercial, industrial and residential applications. The company operates 40 manufacturing facilities spanning North America, Europe and China.

Energy Conversion is a technology, product development and manufacturing company. It is engaged in the invention, engineering, development and commercialization of new materials, products and production technology in the fields of alternative energy technology and information technology.

Energy Conversion will report its second quarter numbers on August 27. The consensus estimate expects the company to swallow a loss of four cents per share while we expect the company to barely break-even. We reaffirm our BUY rating on the stock.