Wellington Drive narrows third quarter loss

Wellington Drive Technologies [NZX: WDT] narrowed its third-quarter loss after the unprofitable maker of energy-efficient motors lifted sales in Latin America and Asia and benefited from a weaker kiwi dollar.

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

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% to 6.1c, valuing the company at $14.1 million.

(BusinessDesk)

Sophie Boot
Mon, 16 Nov 2015

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Wellington Drive narrows third quarter loss

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