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Wellington Drive narrows third quarter loss, forecasts 'modest' full year uplift

Wellington Drive narrowed its third quarter loss.

Suze Metherell
Fri, 05 Dec 2014

Wellington Drive [NZX: WDT], the unprofitable manufacturer of energy efficient motors, narrowed its third quarter loss and revised guidance for a "modest level" of sales growth.

The company posted a loss of $725,000 in the three months ended Sept. 30, narrowing from a loss of $969,000 in the same period a year earlier, it said in statement. Sales fell to $3.8 million from $4.7 million, while earnings before interest, tax, depreciation and amortisation was a smaller loss of $509,000 compared to a loss of $840,000 a year earlier.

In August, Wellington Drive said first half sales in the Americas, its largest market, slumped 45 percent to $6.6 million as weak demand in Latin America prompted increased rivalry and pushed down prices, and expected weak demand in the region is expected to continue through the rest of 2014. It previously expected flat annual earnings, but today was more optimistic.

"For 2015 we are expecting a modest level of revenue growth as a result of new business wins from our new regional channel partners, growth with supermarket display customers and commencement of revenue generation from new products in the second half of 2015," the company said. "We remain cautious overall given that some of the market drivers that impacted 2014 have not changed."

Wellington Drive shares dropped 10 percent to 8.1 cents, and have declined 63 percent since the start of the year.

(BusinessDesk)

Suze Metherell
Fri, 05 Dec 2014
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Wellington Drive narrows third quarter loss, forecasts 'modest' full year uplift
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