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UPDATE 1-Plug Power shares slump on bigger-than-expected loss

Nov 12 (Reuters) - Fuel cell maker Plug Power Inc posted a bigger-than-expected quarterly loss as it continues to struggle to cut costs, sending its shares down as much as 18 percent in premarket trading.

Nov 12 (Reuters) - Fuel cell maker Plug Power Inc posted a bigger-than-expected quarterly loss as it continues to struggle to cut costs, sending its shares down as much as 18 percent in premarket trading.

The company's total cost of revenue more than doubled to $21 million in the third quarter ended Sept. 30, while its operating loss widened 34 percent to $10.7 million from a year earlier.

Plug Power has been increasing investments and expanding its clientele in European auto-manufacturing markets to take advantage of the growing interest in clean technology.

The company's top customers include some of the biggest European carmakers, such as Daimler AG and BMW AG , as well as retailers Wal-mart Stores Inc and Kroger Co, and beverage giant Coca-Cola Co.

Plug Power shipped 857 units of its key GenDrive product, used to power forklifts, in the quarter, compared with 155 units a year ago.

However, the jump in shipments was not enough to lift revenue in line with Wall Street's estimate.

The company reported third-quarter revenue of $19.9 million, well below the average analyst expectation of $24.4 million, according to Thomson Reuters I/B/E/S.

On adjusted basis, Plug Power reported a third-quarter loss of 4 cents per share, missing the average analyst estimate of a loss of 3 cents.

Up to Tuesday's close, Plug Power's shares had fallen 57 percent since March 11, when the heavily shorted stock touched a more than four-year high of $11.72.

The stock was down about 15 percent at $4.32 in trading before the bell on the Nasdaq on Wednesday. (Reporting By Kanika Sikka in Bangalore; Editing by Savio D'Souza and Simon Jennings)

Reuters
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Reuters
Published on:
November 13, 2014
Source url:
http://feeds.reuters.com/~r/reuters/USenergyNews/~3/e7ccnnO6MSg/story01.htm
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