Lion Electric Company had trouble finding other parts in the third quarter and had to be patient in getting some parts. This has made it difficult for electric truck and bus manufacturers to complete and distribute vehicles.
Saint-Jerome-based company Laurentians witnessed disruptions in its supply chain after the stock markets closed, revealing its financial performance for the three-month period ending Wednesday, September 30th.
According to company president and founder Mark Bedard, these unexpected events are not going away. The disruption is expected to continue next year and Lion said it will try to reduce the impact on its “production” and “performance”.
These specific actions include increasing supplier duplication, selecting raw materials for the benefit of our component suppliers, increasing the internal manufacture of certain components and redesigning specific sub-components.
Mark Bedard, President and Founder of the Law Company Electric Lion
On Wednesday evening, Lion did not specify how many vehicles were due to issues such as delivery or assembling. This seems to have had an impact on revenue growth, although the company has lost analysts ’forecast for revenue.
However, in the third quarter, the company made 10 deliveries of 40 vehicles – 28 school buses and 12 trucks – over the same period last year.
In his presentation to investors, Lion explained that supply difficulties mainly affected parts that are considered “less needed” such as metal modules, plastic parts and wire harnesses.
Last August, Mr. Bédard explained Tap Thanks to the strategy of overstocking the parts that are considered “strategic” in the manufacture of engines and batteries, the Lion was able to get out of the game.
“We continue to see the transition to transport electrification […] It is experiencing a strong momentum and has led to a certain commitment through negotiations with potential customers, ”said the President of Electric Buses and Trucks Manufacturers.
On October 25, Lion announced that it had pledged to purchase 1,000 electric buses from the Student Transportation of Canada (STC) federal program if its eligibility for grants was confirmed – an agreement that would double the size of the order book. .
As of November 10 – the end of the third quarter – the Lion order book was worth nearly half a billion or 2,024 vehicles. This data takes into account STC commitment.
Lion reported revenue of US $ 11.9 million in the third quarter, up from US $ 2.6 million a year earlier. Analysts polled by Refinitiv estimated turnover at 25.5 million US.
US $ 123 million net income or US $ 60 cents per share was posted, but this result was mainly due to accounting factors. In the third quarter of last year, Lion lost 38.6 million US or 35 US cents per share.
Excluding one-time items, Lion’s loss in the third quarter was approximately US $ 15 million. Its adjusted operating loss was US $ 8.8 million, down from US $ 2.8 million a year ago.
On the Toronto Stock Exchange, Lions stock closed at $ 15.20, 46 cents or 2.9%.