Westport Posts Q1 Loss | Transport Subjects
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Westport Gas Programs Inc. shifted to the purple from the black within the first three months of 2023 because the absence of earnings from the 2022 sale of its share in a pure gasoline truck engine three way partnership with trade heavyweight Cummins Inc. weighed on the Canadian firm’s backside line, it mentioned Could 9.
Vancouver-headquartered Westport posted a web lack of $10.6 million, or 6 cents per diluted share, within the first quarter of 2023 after delivering a revenue of $7.7 million, 4 cents, in the identical quarter final 12 months, it mentioned.
The lower in earnings was pushed by the lack of fairness earnings from the sale of Westport’s curiosity within the 20-year Cummins Westport Inc. three way partnership, together with a $19.1 million acquire recorded within the first quarter of 2022, it mentioned.
Nonetheless, Westport beat consensus earnings estimates. Analysts had anticipated a lack of 8 cents per diluted share within the first quarter, in line with Zacks Fairness Analysis. The corporate additionally beat consensus income expectations of $78 million, Zacks mentioned.
Westport Gas Programs Reviews First Quarter 2023 Monetary Outcomes https://t.co/Xi3rEZxyit
— Westport Gas Programs (@WestportDotCom) Could 8, 2023
Westport’s income elevated 7% to $82.2 million within the first three months of 2023 from $76.5 million within the year-ago interval, pushed by a rise of $4.5 million or 9% in its gross sales to unique gear producers.
“Operationally our companies carried out properly, regardless of continued challenges associated to chip shortages and a gradual return of shoppers who’ve lingering considerations from the excessive LNG costs seen in 2022,” CEO David Johnson mentioned in a press release accompanying the outcomes.
Through the firm’s earnings name Could 9, Johnson mentioned hydrogen-based gas techniques could be key to the corporate’s focus going ahead. Westport’s hydrogen product line was not altering the gas cycle for inner combustion truck engines, however would make them 10% extra environment friendly, amongst different issues, he mentioned.
A mess of unique gear producers throughout North America and across the globe are specializing in hydrogen-powered trucking, Johnson mentioned, as “it’s the one one for the longhaul” operators. However Johnson mentioned Westport was forward of most of its rivals as a result of they have been specializing in spark-ignited techniques reasonably than direct injection — as Westport does with its Excessive Strain Direct Injection product line — to chop emissions.
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