Motor manufacturer expects to make a loss

Listed electric motor manufacturer Wellington Drive Technologies is expecting to post a full-year loss for the year to June.

The company, which had hoped to break even this year, said it was still spending heavily on research and development, as well as boosting productive capacity.

It did not expect new licensing and contracted engineering revenues to offset these costs to the extent previously anticipated in the remaining 10 weeks of the financial year.

However, the company said it had recently won additional orders and expected to succeed in cutting costs.

It has secured an order from Dutch company J E StorkAir worth $2 million over 12 months and the expansion of its contract manufacturing activities in Asia were progressing according to plan.

"We expect substantial working capital, production and delivery cost savings, when our products are fully built and sourced in Asia."

It expects its Asian supply chain to be in place by September this year.