Increased competition from gasoline-powered vehicles and unfavourable currency exchange rates are partially responsible for a drop in revenue at Westport Innovations.
Year-end financial results released Monday (March 9) reveal revenue dropped 20% to US$130 million in 2014 compared with a year prior when the company brought in US$164 million.
In the fourth quarter, the clean tech engine-maker brought in revenue of US$27.4 million — a 48% plunge from the same period in 2013.
Vancouver-based Westport, which has developed engines running on compressed natural gas, managed to cut its net losses to US$149 million for the year compared with US$185.4 million in 2014. It reported net losses of US$64.9 million in the fourth quarter compared with US$89.5 million during the same period in 2013.
Chief financial officer Ashoka Achuthan told investors during an afternoon conference call the reduction of losses was due to improvements in joint venture income and cuts to operational expenses.
President and chief operating officer Nancy Gougarty said the company cut costs by reducing the number of global facilities by about 30% and slashing nearly 300 jobs.
CEO David Demers said the collapse in oil prices have caused some markets to slow down but other companies seem to be gaining confidence in the stability of natural gas prices. He added the fourth quarter was expected to be “rough” and the financial results reflect that.
But he added the company anticipates strong growth once uncertainties begin to clear up over currencies and energy prices.
Westport has yet to post a profit since it was founded in the mid-90s.
Demers, who has been CEO since Wesport’s inception, told Business In Vancouver the company’s down periods are usually the times where the company has the chance to become even more innovative. He said he doesn’t have plans to step down and leave “our employees and our investors in the lurch.”
