Westport Posts Slight Revenue Decline Amid Restructuring
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Westport Fuel Systems experienced a slight decline in revenue amid a restructuring of its segments during the second quarter of 2024, the company reported Aug. 13.
The Vancouver, British Columbia-based fuel system component manufacturer posted net income of $5.8 million, or 33 cents per diluted share, for the three months ending June 30. That compared with a loss of $13.2 million, 77 cents, during the same period the previous year. Total revenue decreased 2% to $83.4 million from $85 million.
Westport attributed the revenue decline primarily to decreased sales volumes in the light-duty segment. This was partially offset by increased sales in the high-pressure systems and heavy-duty manufacturer segments. The net income primarily resulted from a $13.3 million gain on deconsolidation of the High Pressure Direct Injection business and formation of an HPDI joint venture with Volvo Group.
Westport is refining its focus by restructuring into five main segments: HPDI JV, light-duty, high-pressure controls, heavy-duty original equipment manufacturer and corporate. This reorganization aims to strengthen alignment between competitive strategies and internal operations.
The HPDI JV reported revenue of $4.1 million and an operating loss of $2 million. No year-over-year comparison was available for this new business unit. The light-duty segment reported a 5.7% revenue decrease to $69.5 million from $73.7 million. Operating income increased to $3.3 million from a loss of $1.8 million.
High-pressure controls and systems segment revenue increased to $3.4 million from $2.8 million. The operating loss was $900,000, compared with $600,000 the prior year. Heavy-duty OEM segment revenue increased 23.5% to $10.5 million from $8.5 million. The operating loss narrowed to $2.3 million from $3.3 million.
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