Orbital Corporation Limited has posted a net after-tax loss of $A1.5 million for the six months ended 31 December 2004 compared to a profit of $2.1 million for the same period last year.
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Chief executive officer Peter Cook, said the results were consistent with Orbital’s previous guidance.
Revenue was down 46% to $5.4 million.
“Given our recent track record of steadily improving results each half year, these results are disappointing, but we expect to achieve our three year plan,” Cook said. “We remain on track to return to profitability in the June half.”
Cook said there had been timing issues with new powertrain engineering orders during the first half and the year on year licence difference was to be expected given the success in India with Bajaj and UCAL in the last year.
“Synerject, our joint venture with Siemens-VDO, returned a creditable performance in the first half, recognising the strengthening Australian dollar, with our share of joint venture profits up 4% on the previous corresponding half year,” he said.
“The measures we have implemented over the last three years have positioned Orbital to benefit from the changes precipitated by the introduction of the Kyoto Protocol and the inevitable move towards lower emissions and improved fuel consumption standards globally.
“Our focus on Asia Pacific has created an encouraging forward pipeline.”
Orbital said its expenses fell 9% to $7.9 million due to lower employee expenses, reduced depreciation and lower engineering contractor costs associated with the reduced level of engineering services work during the half year.
Its reported share of Synerject’s profit rose 4% to $0.9 million for the half year, despite the strengthening Australian dollar.
The board expects a return to profitability in the second half based on current strong powertrain engineering interest and volume increases from new or recent product releases from Kymco, Aprilia and Mercury Marine using Orbital technology under licence.
In addition, Synerject’s results should benefit from the seasonal influences that typically deliver better results in the second half.
