What is in this article?:
- Westport Realigns Businesses, Sees Brighter Prospects
- Future prospects
- “Transformational shift”
- New business units emphasize sales, marketing
- Two new OEM partners lined up
"There has been a transformational shift in the opportunity for natural gas solutions for transportation," according to Westport Innovations CEO David Demers. As evidence of its bullish outlook, the company pointed to numerous developments in engine and vehicle design, and natural-gas fueling infrastructure programs.
Vancouver-based natural-gas engine developer Westport Innovations Inc. reported a Q4 2012 net loss of $37.6 million and a FY 2012 net loss of $98.8 million. Its joint venture with Cummins Inc., Cummins Westport Inc., delivered 2012 revenue of $353.6 million, exceeding its own guidance of $340-350 million. The company’s various joint ventures performed better, including Cummins Westport Inc. (2012 net revenue of $198.0 million, +21% year-over-year) and Weichai Westport Inc. ($272.1 million, +148% year-over-year.)
Westport Innovations develops alternative fuel, low-emissions technologies and manufactures engines that operate on compressed natural gas, liquefied natural gas, hydrogen, and biofuels, e.g., landfill gas. Its operating divisions focus on light-duty automotive systems, components, and engines; and natural gas-enabling technology for the heavy-duty diesel engines.
Its technologies are the basis of several development programs with OEMs like General Motors Corp. and Cummins Inc.
"There has been a transformational shift in the opportunity for natural gas solutions for transportation," stated Westport CEO David Demers. "Global infrastructure partners and original equipment manufacturers covering multiple platforms are signing up to develop natural gas products with Westport. As a result of this shift, we realigned our business units to focus on product sales and marketing, while expanding on corporate and technology development investments."
Despite the loss in revenue, Westport said its various product lines expanded over the reporting period, and it said it expects the growth continue, “considerably.” However, to promote product commercialization strategy Westport it has realigned its programs into new business units. These are: Westport Applied Technologies, On-Road Systems, New Markets and Off-Road Systems, and Corporate and Technology Investments.
Joint ventures, like the Westport Cummins venture, will continue to be reported separately.