24feb10Sevcon
Sevcon, which designs drives for electric vehicles in Gateshead, reported three month sales of $6.3m to NASDAQ through its Massachusetts parent Tech/Ops Sevcon.
In its financial statement for the quarter ended January 2010, the company recorded an operating income of $161,000, compared to the $73,000 reported in the first quarter last year.
The increase in operating income was attributed to a combination of improved margins and lower operating expenses that more than offset lower levels of shipments.
"Improved sales of our new vehicle control products, combined with the results of effective cost and cash management, enabled the company to record its first quarterly profit since the beginning of the severe economic decline in our worldwide markets that began in Autumn 2008," said MD Matt Boyle.
Although registered in Boston where its chairman resides, the company is largely based along with its MD in Gateshead. Manufacture is contracted out.
"Although listed in the USA, we are very much a North East company with a global reach. Gateshead is the Company's engineering headquarters and the focal point for Sevcon's technical design and product development activities," said Boyle. "In recent years we've worked hard to innovate and boost the performance of our controls to meet changing market needs and stay ahead of the competition. In this respect our recent new technology products have been very well received in our markets."
The firm's traditional customer base is industrial vehicles, where clients include Toyota, Nissan, Ford and Hyundai.
However, it is spreading its wings.
"New applications for Sevcon electronic motor controllers have been secured in electric vehicles used in the utility and recreational sectors," said a spokesman for the company. "These are mainly low speed vehicles which are not road legal but they have nevertheless have helped to offset recent reduced demand in the company's traditional electric vehicle markets including fork lift trucks, aerial platforms and mining vehicles."
The firm is beginning to talk to road vehicle makers, particularly for scooters.
"Interest in on road electric vehicles is rising, in everything from hybrids to plug-in hybrids and electric scooters, where the potential volume is far greater. The main interest at present is in the USA and Asia, but India and Europe will follow, said the spokesman.
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