BC Ballard Power chops loss 20% in 2003
VANCOUVER -- - Ballard Power Systems Inc. says it managed to cut its annual loss by 20 per cent last year, helped by record product and service revenue, foreign exchange gains and reduced operating expenses.
Ballard said recently that its loss for the year ended Dec. 31 was $125.1-million (U.S.) or $1.07 a share compared with a loss of $148.4 million or $1.41 in 2002. Revenue rose to a record $119.6-million from $90.9-million.
Ballard, based in Burnaby, B.C., is working with auto giants DaimlerChrysler AG. and Ford Motor Co. to develop fuel cells that generate electricity by combining oxygen and hydrogen. Fuel cells are considered an environmentally friendly alternative to the internal combustion engine.
In a conference call with analysts, chief executive officer Dennis Campbell said Ballard is talking with its auto industry partners about how it can speed the development of fuel-cell vehicles.
He said the consortium is looking at how it can take advantage of similarities in the design of fuel-cell and electric-hybrid vehicles.
"As a result of this, our partners Ford and Daimler have stepped back and said: 'You know, maybe we had better take a look at who is doing what and how we might best capture the efficiencies of these two platforms,' '' he said.
This makes sense, Mr. Campbell said, because electric hybrid vehicles are not just a "passing fancy,'' and major auto makers are going to have to get involved in developing that technology.
Ballard reported a higher-than-expected loss of $38.8-million or 33 cents a share in the fourth quarter ended Dec. 31, a 9-per-cent increase from the year-earlier loss of $35.5-million or 34 cents.
` Analysts polled by Thomson Financial/First Call had been forecasting a loss of 29 cents.
Ballard attributed the increased loss to lower engineering service revenue as well as the impact of a $5.3-million writedown on its investment in QuestAir Technologies Inc. of Burnaby, B.C. Fourth-quarter revenue fell to $29.1-million from $29.3-million.
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