Member Article

Gateshead-based Sevcon defies market challenges to post strong Q3 financials

Gateshead-based Sevcon has reported a strong set of financials for Q3, increasing both sales and profits.

The low carbon vehicle company saw revenues increase to $10.3m (£6.6m) from $9.7m (£6.2m), reflecting strong customer demand for products in the on-road sector.

Sevcon said foreign currency fluctuations decreased reported sales by $846,000, or 8%, mainly due to a stronger US dollar compared with both the Pound and the Euro. Excluding the impact of currency fluctuations, revenues increased 15%.

Moreover, profits increased to $261,000, (£167,300) compared with $213,000 (£136,500) in the third quarter of the year.

Additionally, for the first nine months of fiscal 2015 sales were $30.6m (£19.6m) compared with $27.9m (£17.9m) in the same period last year. Profits rose to $1.2m (£780,000) compared with $1.1m (£720,000) in the first nine months of fiscal 2014.

Matt Boyle, President and CEO, said: “Our initiatives to accelerate growth in our traditional off-road industrial markets are progressing well.

“In the on-road sector, our ongoing investments in engineering and technical innovation, have enabled us to forge strong partnerships with some of the largest companies in the world. These alliances are creating lasting relationships that get our products ‘designed in’ and help us grow as our customers grow.

“Taking the longer view, many traditional internal combustion and mechanical systems are being replaced by electrical solutions that improve efficiency, reduce emissions, and lower overall cost in both off-road and on-road applications.”

Commenting on the last quarter’s performance, Mr Boyle added: “Sevcon’s third-quarter sales grew 7% year-on-year, despite weak conditions in some of our traditional off-road markets and the unfavourable impact of foreign exchange rates.”

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