Sevcon Records Loss In Q1
Southborough-based Sevcon Inc., which makes drivetrain controls for electric and hybrid vehicles, saw its sales fall 22 percent in its first fiscal quarter, helping drive a loss of $1.3 million.
Compared to the same fiscal quarter of 2011, Sevcon's revenue fell from $8.5 million to $6.6 million, and profits dropped from $284,000 to a loss of $1.3 million.
CEO Matt Boyle attributed the results to "challenging global economic conditions," which he said affected the on-road and off-road segments of Sevcon's business.
"Product demand for traditional off-road industrial (electric vehicle) applications remained soft, reflecting ongoing weakness in the global construction and mining sectors," Boyle said.
It was a continuation of a trend Sevcon experienced in the previous quarter, despite double-digit growth in sales of two-wheel applications such as electric scooters and motorcycles.
But Boyle said there's reason to be optimistic about the future. Order flow, which was weak in October and November, has picked up in December and January.
WBJ Web Partners
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