Westport Innovations shares skid after outlook cut

Fri Aug 2, 2013 11:54am EDT
 
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(Reuters) - Westport Innovations Inc's WPT.TO shares fell as much as 17 percent after the designer of natural gas-powered engines cut its full-year revenue outlook and reported a bigger quarterly loss.

Westport Innovations faces delays in both a product launch in China and the start of 2013 incentives for natural gas cars in Sweden.

The company on Thursday cut its 2013 revenue forecast to $160 million-$180 million from $180 million-$200 million.

"The long timeline to market maturity may begin to weigh on its balance sheet," Northland Capital analyst Colin Rusch said in a note, downgrading the stock to "market perform" from "outperform."

The company said some car buyers were delaying purchases in anticipation of Volvo AB's VOLVb.ST new V60 model, which uses Westport's components.

The company — which makes and sells pressure regulators, injectors and other components to car makers such as Volkswagen AG VOWG_p.DE, Toyota Motor Corp 7203.T and Chrysler — recorded a 29 percent fall in revenue for the second quarter.

Operating costs rose 31 percent for the quarter ended June.

The company's net loss widened to $33.9 million, or 61 cents per share, from $6.1 million, or 11 cents per share, a year earlier.

Westport shares were down 11 percent at C$28.94 on the Toronto Stock Exchange. The stock, which touched a low of $27.26, was one of the top percentage losers on the exchange on Friday morning.

The company's Nasdaq-listed shares WPRT.O were down 12.5 percent at $27.91.

(Reporting by Krithika Krishnamurthy in Bangalore; Editing by Joyjeet Das)