Wellington Drive narrows 3Q loss as international demand, weak kiwi drive sales growth

Monday 16th November 2015

Wellington Drive Technologies narrowed its third-quarter loss after the unprofitable maker of energy-efficient motors lifted sales in Latin America and Asia, and benefitted from a weaker kiwi dollar.

The net loss was $388,000 in the three months ended Sept. 30, compared to a loss of $643,000 a year earlier, the Auckland-based company said in a statement. Revenue rose 31 percent to $5.1 million, while gross margin increased to 23.5 percent from 18.2 percent.

The company sold 211,000 motors in the quarter, up from 185,000 a year earlier, driven by higher sales in Latin America and Asia, it said. The narrower loss reflected a lift in sales, a wider margin on cheaper supplier costs, lower operating costs, and a weaker New Zealand dollar, it said.

Wellington Drive said its ECR2 motor had completed regulatory approvals in Europe, and was expected to be approved in North America by the end of November.

The stock rose 1.7 percent to 6.1 cents, valuing the company at $14.1 million.

BusinessDesk.co.nz

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