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Workhorse Group Cuts Vehicle Production Guidance for 2021 After First-Quarter Miss on Supply Chain Issues, Shipping Delays

05/10/2021 11:08

02:58 PM EDT, 05/10/2021 (MT Newswires) -- Workhorse Group (WKHS) lowered its vehicle production guidance for 2021 after first-quarter results missed expectations on supply chain issues and shipping delays.

The electric delivery vehicle manufacturer expects to produce 1,000 units in 2021, versus a previous outlook of 1,800 units issued back in November.

"Our deliberate approach to growth will ensure we are well-positioned to deliver the increased volumes we expect in 2022 and beyond," said Chief Executive Duane Hughes.

Cincinnati-based Workhorse on Monday reported a loss of $1.04 per diluted share in the quarter ended March, compared with earnings of $0.06 a year earlier. Analysts polled by Capital expected a loss of $0.17. Sales rose to $521,060 from $84,300. The Street forecast was $2.3 million.

"Bottlenecks within the global supply chain and offshore shipping delays of commodity raw materials and components as well as our initial stages of production limited our capacity to produce during the first quarter," said Hughes. "However, our vehicle production numbers in April in comparison to the last few quarters are encouraging as are the proactive steps we are taking to build our volumes and ensure consistent production."

Sales increased year over year despite a miss due to a higher number of delivered trucks which totaled six in the quarter.

Total operating expenses rose to $10.7 million from $7.5 million last year.

Price: 8.41, Change: -1.23, Percent Change: -12.73