Fuel Systems shares up on 4Q results
Fuel Systems Solutions 4Q adjusted profit beats expectations; shares jump
NEW YORK (AP) -- Fuel Systems Solutions Inc. posted a loss for its fiscal fourth quarter on Friday but its adjusted results exceeded market expectations, sending its stock higher.
The New York-based company makes alternative fuel components and systems for use in the transportation, industrial, and power-generation industries worldwide.
Fuel Systems reported a net loss of $21 million, or $1.05 per share, for the quarter that ended Dec. 31. That is compared to net income of $1.4 million, or 7 cents per share, in fourth quarter of the prior year. After adjusting for a $22 million asset-impairment charge and associated tax benefit, it earned 1 cent per share in the most recent quarter.
The company took the charge to reflect adjustments it has made over the past few quarters to its expectations for U.S. automotive operations and its AFS acquisitions.
Fuel Systems' total revenue fell to $98 million from $111 million on weaker automotive demand in the U.S. and Latin America, as well as unfavorable foreign exchange rates.
Analysts polled by FactSet had forecast an adjusted loss of 3 cents per share on revenue of $88.9 million.
Fuel Systems CEO Mariano Costamagna said demand remains strong for its gaseous and bi-fuel products as equipment manufacturers look for cleaner and more cost-efficient methods for powering automotive and industrial engines.
The company forecast revenue between $400 million and $420 million for its 2013 fiscal year. Analysts had forecast revenue of $412.9 million.
Fuel Systems shares were up $1.15, nearly 8 percent, to $15.71 in afternoon trading. Its shares, however, remain at the lower end of their 52-week trading range of $13.38 to $28.28. The stock fell sharply last spring after Fuel Systems posted disappointing results and is down about 40 percent from year-ago levels.
