Natural gas engine and vehicle manufacturer Westport Innovations Inc. on Monday released earnings for the final quarter of last year and all of 2014 showing it lost less money in both periods while revenue declined.
The Canada-based company reported a net loss of $64.9 million in the final quarter, or $1.02 per share, an improvement of 27% and 28%, respectively, compared to the same time a year earlier. Revenues during the period fell 48% to $27.4 million.
Westport posted a 2014 net loss of $149.6 million, or $2.37 per share, 19% and a 26% less, respectively, compared to 2013.
In a release, the company noted total revenue exceeded $1 billion annually for the first, what it called “a significant milestone for both Westport and the natural gas engine and vehicle industry.” Westport said the improvement in net loss for the quarter and for all of 2014 was primarily due to increases in consolidated gross margin and joint ventures’ income, combined with a reduction in operational expenses.
During the fourth quarter, in North America, a joint venture with the engine maker Cummins, known as Cummins Westport, saw unit volume increase by 28% year-over-year, driven primarily by strong growth in trucking and bus applications, which are up 41% and 40%, respectively, over the same period in 2013, according to Westport.
"Despite volatile energy markets in 2014, market interest in alternative fuels continues to grow in many parts of the world," said David Demers, CEO. " Our joint ventures posted record annual revenue with over 61,000 combined units sold during the year, representing approximately 2.7% of the global medium- and heavy-duty on-road engines sold in 2014."
As the end of 2014, Westport reported cash, cash equivalents, and short-term investment balance was $94 million. It said its primary motivation is to get the company to breakeven from a cash flow stance as soon as possible.
“Westport has a number of choices that can be made around investments and other research and development programs that will expedite this process. Additionally, Westport has a number of strategic alternatives to help reduce core expenses and cash burn and maintains the ability to divest certain non-core assets,” the company said in a statement.
More details on the Westport Innovations financial performance are available on its website.