Net sales for the three months ended December 31, 2023, decreased by 26.2% to $297.0 million compared to $402.3 million in the same period in 2022. Net sales of wind blades, tooling, and other wind-related items (wind) decreased by $96.9 million, or 25.6%, to $281.8 million for the three months ended December 31, 2023, compared to $378.6 million in the same period in 2022.
Net sales for the year ended December 31, 2023, decreased by 4.4% to $1,455.2 million compared to $1,522.7 million in 2022. Net sales of Wind decreased by $29.5 million, or 2.1%, to $1,394.3 million for the year ended December 31, 2023, compared to $1,423.8 million in 2022. These decreases were partially offset by an increase in the number of wind blades produced, increased average sales prices, favourable foreign currency fluctuations, and an increase in tooling sales. In Q4 TPI produces 602 wind blades set.
The decline in sales was partially due to a reduction in wind blade inventory included in contract assets, driven by working capital initiatives. This inventory reduction significantly impacted net sales of Wind for the quarter ended December 31, 2023, as lower blade inventory costs directly correlate to lower revenue under the cost-to-cost revenue recognition method for blade contracts. Sales were also negatively impacted as TPI had to slow down production at a plant for approximately 10 weeks, including a four-week shutdown, due to out-of-spec material received from a supplier, and they ramped down five lines in preparation for transitions that will occur in early 2024. These decreases were partially offset by higher average selling prices. TPI produced a total of 2584 wind blades sets in 2023.
