Windflow 2010 loss bigger than estimated at $7.95M

Windflow says 2010 loss bigger than estimated at $7.95M

Sept. 9 (BusinessDesk) Windflow Technology Ltd., which makes turbines for windfarms, revised up its loss for the year ended June 30 to $7.95 million because of costs of remedial work for customer NZ Windfarms.

The manufacturer had previously estimated the loss at $5 million to $6 million. The increased loss “arises from additional provisions WTL has recorded in respect of the full costs of remedial work arising from the agreement reached with NZ Windfarms,” it said in a statement.

The larger loss also reflects a reassessment of the Company’s warranty cost requirements for the next five years, it said.

“Although this review has resulted in an increased level of provisioning, I am comforted that the warranty costs relating to our new and unique technology are at the low end of international norms,” chief executive Geoff Henderson said.

Shares of Windflow fell 4.4% to $1.10 cents on the NZX today.

(BusinessDesk)

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