Clean Diesel’s Pirelli deal scuttled
Clean Diesel Technologies said its third-quarter loss narrowed to $1.1 million, or 12 cents per share, on lower revenue. The Ventura-based emission control technology firm also said that a joint venture with Pirelli & C. Ambiente SpA will be dissolved.
Clean Diesel said Nov. 12 that it and the Italian auto parts firm had decided to cancel a project launched earlier this year that brought Clean Diesel’s catalytic converter coatings to Europe.
“The decision by Pirelli and CDTi to dissolve the joint venture was driven by the slower-than-anticipated progress in achieving the sales objectives that were initially established. In addition, we recently undertook a review of our business investments and activities and made the decision to focus resources outside of the joint venture,” Clean Diesel President and CEO Craig Breese said in a news release.
Clean Diesel said its third-quarter loss was $1.1 million compared to a loss of $1.8 million a year earlier. Revenue dipped 1.4 percent to $14.2 million.
“Our stable top line performance combined with continued operational progress, strong gross margin expansion and cost control drove a significant improvement in our bottom line for a third consecutive quarter,” Breese said.
The company’s catalytic division saw strong sales growth of 9 percent to $6.2 million, largely due to a sales agreement with Honda. Clean Diesel also said its heavy-duty diesel systems division benefited from a jump in sales in the California retrofit market, which helped offset slower retrofit activity in other states and expected softness from reduced sales to mining and material handling customers in Europe.
“We continued to execute on our growth strategies and technology initiatives during the quarter,” Breese said. “Patent filings now total 39 year-to-date. Our priorities will continue to involve the strengthening of our patent position and commercialization of advanced low-platinum group metal and zero-platinum group metal technologies. We remain intently focused on these technology initiatives to help support our innovation and enhance our future growth opportunities.”