Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Wellington Drive narrows FY loss after trimming costs

Wellington Drive narrows FY loss after trimming costs, fattening margin

Feb. 28 (BusinessDesk) – Wellington Drive Technologies, which makes energy efficient motors, narrowed its full-year loss after embarking on a strategic overhaul that cut costs, spending and inventory and widened its margins.

The net loss shrank to $6.3 million in calendar 2012, from a loss of $14.5 million a year earlier, the Auckland-based company said in a statement. Revenue rose 2 percent to $35.6 million.

The manufacturer’s turnaround plan saw it exit ventilation production in Singapore, now outsourced to Ziehl-Abegg, and reductions in inventory, supply chain and operating costs. Wellington Drive’s gross margin jumped to 14 percent from 5 percent. Operating costs fell 28 percent to $11.7 million and inventory fell to $4.5 million from $10.9 million.

The shares last traded at 15.5 cents and have declined 16 percent in the past 12 months.

The company said its targets for 2012 are continued margin expansion and revenue growth. Revenue is forecast at between $30 million and $33 million, while the gross margin target is a 4 percent-to-6 percent increase on 2012.

It is aiming for a full-year loss on an earnings before interest, tax, depreciation and amortisation basis of below $3 million, with positive ebitda for 2012.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news