Shares of Ballard Power Systems Inc (NASDAQ:BLDP) slipped in Thursday’s pre-market session after the fuel cell technology company posted a loss and missed the Street’s revenue and profit estimates for the third quarter due to a slowdown in its business in China.
For the three months ended on September 30, the company, which is based in Burnaby, British Columbia, reported a loss of $6 million, or $0.03 per share, on revenue of $21.6 million. The results fell short of Wall Street’s estimates of a loss of $0.02 per share on revenue of $31.3 million.
Investors were left unimpressed and pushed Ballard shares down 14.5% to $3.18 before Thursday’s opening bell.
In a statement, CEO Randy MacEwen attributed the quarterly shortfall to Ballard’s sluggish performance in China where it is looking to position itself as a top fuel cell technology provider in the country's burgeoning fuel cell electric vehicle market.
READ: China’s Weichai Power pours US$163mln in Canada’s Ballard Power for a majority stake in the company
“Financial results disappointed in Q3, primarily due to a slower-than-expected ramp-up in China, while the Company’s long-term value and growth potential improved in the quarter,” MacEwen said.
Last August, Ballard announced it had secured around US$163 mln from Weichai Power Company and established a joint venture in China. The equity investment represents a 19.9% interest in Ballard and makes the Chinese automotive and equipment manufacturer Ballard’s largest shareholder.
Ballard and Weichai established a joint venture to support China’s growing fuel cell electric vehicle market in which Ballard will initially have a 49% ownership stake.
“Our strategic collaboration with Weichai Power, which we anticipate closing by year-end, is expected to be a positive long-term catalyst for our business,” noted MacEwen.
In the quarter, Ballard unveiled a new liquid-cooled fuel cell stack, the FCgen-LCS, which will be a core component for use in buses, commercial trucks and trains.
Contact Ellen Kelleher at [email protected]