Westport Innovations shares skid after outlook cut

Fri Aug 2, 2013 11:54am EDT
 

(Reuters) - Westport Innovations Inc's (WPT.TO: Quote) 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: Quote) 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: Quote), Toyota Motor Corp (7203.T: Quote) 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: Quote) were down 12.5 percent at $27.91.

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