Orbital Expects Improvement in 2005
December 7, 2004
Filed under Features
In October, Orbital Corporation Limited (OCP) advised of a $1.5 million to $1.9 million operating loss for the six months to Dec. 31, 2004. The company said the loss was the result of a combination of poor volumes in both the European scooter market and in the personal watercraft market as well as a delay in powertrain engineering orders which was not corrected until the end of the first quarter.
This week, Orbital leaders say they expect the company to return to profit in the six months ending June 2005 by feeding accounts with recent improvements in powertrain engineering orders, an expected upturn in Synerject royalties, and the addition of new licensees.
Since July, the company has garnered several new contracts, including projects to supply a direct injection management system for four-stroke two wheeler applications, engine calibration and testing and government vehicle testing programs.
Piaggio uses OCP technology in a number of offerings, including the Gilera Race Replica 50cc scooter and the new NRG Purejet; Aprilia utilizes OCP in its Sr 50 R Factory; Kymco revealed it plans to release its first product incorporating OCP, a 100cc direct injection scooter; and Bajaj Auto in India, OCP’s most recent licensee, says it has plans to utilize the direct-injection technology in a variety of its models.
Furthermore, in Europe, Suzuki recently released the 50cc Katana direct injection scooter, which utilizes OCP’s patented combustion technology in an engine supplied under license by Aprilia. It is the first Japanese branded product utilizing Orbital technology.
“Soft conditions prevalent in the first half of full year 2005 should not be expected to be carried into full year 2006,” Orbital leaders said in a prepared statement. “These contracts together with other anticipated programs are expected to produce a solid second half for full year 2005.”
Headquartered in Perth, Western Australia, Orbital stock is traded on the Australian Stock Exchange (OEC) and the OTC Bulletin Board (OBTLY).