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Westport Q1 Income Drops, Canada

May 3, 2013

Westport Q1 Income Drops

Westport Innovations Inc. reported financial results for the first quarter ended March 31, 2013 and provided an update on operations.

Highlights include:

  • Westport revenue for the quarter ended March 31, 2013 was $30.1 million compared with $36.0 million for the same period last year.
  • For the quarter ended March 31, 2013 Westport reported a net loss of $31.8 million or $0.57 per share compared to $22.6 million or $0.44 per share for the same period last year.
  • Segment revenue for the quarter ended March 31, 2013 was: $23.3 million for Applied Technologies; $5.8 million for On-Road Systems; $1.0 million for Corporate and Technology Investments; $44.7 million for Cummins Westport Inc. (CWI) and $105.9 million for Weichai Westport Inc. (WWI). For comparative purposes and consistency with previous presentations, Westport plus CWI revenue was $74.8 million.
  • In the first quarter of 2013, CWI shipped 1,313 units, On-Road shipped three WestportTM 15L units and 204 Westport WiNGTM Power System units, and WWI shipped 8,529 units.
  • Westport and ENN Group signed an agreement for liquefied natural gas (LNG) as a fuel for on-road, off-road, rail and marine applications.
  • Westport and Clean Energy launched a co-marketing program to increase the use of LNG in trucking applications in North America and offer a bundled solution for the purchase of natural gas trucks.
  • Cummins Westport ISX12 G engine was featured at the Mid-America Trucking Show, with new truck products shown for 2013 delivery. Production of the ISX12 G began on schedule in April.
  • Announced the availability of the Ford F-Series Super Duty pickup trucks with the Westport WiNG Power System in Canada, and availability of the system in the Ford F-450 and F-550 platforms.

“As expected, our first quarter of 2013 was a transition period with remnant effects from soft market conditions at the end of 2012, and the impact on timing and recognition of service revenue and opportunities in our On-Road Systems business,” said David Demers, CEO of Westport. “We are expecting a step change in growth over the course of this year and remain confident the market for natural gas as a fuel in trucking is here and now – not five or ten years down the road. With the launch of so many new truck models with the new Cummins Westport ISX12 G engine, we see strong customer demand going forward alongside our new WestportTM LNG Tank System. At the same time, the change in infrastructure availability year-over-year has been impressive, and more is on the way. Our Westport WiNGTM products have established a market leading position for performance, quality and value. We are expanding that offering into the larger F-450/550 models, and will be producing in Canada for the Canadian market in June.”

“Internationally, we continue to see excellent growth in China, with our Weichai joint venture shipping more than 8,500 engines this quarter, up over 200%,” continued Demers. “In Sweden, uncertainty about the availability of government incentives slowed sales substantially in the quarter, but the recent announcement by the Swedish government that natural gas vehicles credits would continue for three years is expected to revive sales.”

“Perhaps the most interesting news this quarter was the extent of interest in use of LNG in the rail industry. Our programs with Caterpillar to develop locomotives and mining applications that use WestportTM HPDI technology for high performance and fuel economy that matches diesel are going well and we are seeing high commitment to building an LNG fuel distribution system dedicated to the rail industry.”

“We are reiterating strong sustainable growth for the full year in 2013, based on a build in new products sales, particularly in our On-Road Systems business,” stated Demers. “We are in a position to capture our share of this emerging opportunity by leveraging our first mover advantage, technologies, and asset-light business model. Our balance sheet has enabled us to continually invest in new products and innovative technologies that will fundamentally change the transportation sector.”

[mappress]
LNG World News Staff, May 3, 2013