Shares of Santa Ana-based Fuel Systems Solutions Inc., Orange County’s strongest major stock in 2008, plunged Friday, a day after the company reported a big profit drop and warned about 2009 results.
Fuel Systems, which makes kits that allow vehicles to run on propane and natural gas, saw its shares drop about 35% in early Friday trading on a market value of about $200 million.
In 2008, Fuel Systems was the best major stock in the county, ending the year up 140%.
As part of fourth-quarter results issued Thursday, Fuel Systems said it expects a big shortfall in 2009 revenue and weaker profits because of the global recession, acquisition costs and a stronger dollar.
The company projects sales of $330 million to $360 million, versus the $418.5 million Wall Street had been expecting.
The company didn’t provide a specific profit outlook but said it expects profits to be impacted by product development and other spending.
Fuel Systems said it is projecting a 2009 operating profit margin of 10% to 12%, versus 12% for 2008.
For the fourth quarter, Fuel Systems reported a profit of $641,000, down from $4.8 million a year earlier.
Analysts on averaged expected a profit of $6.6 million.
Fuel Systems runs Santa Ana’s Impco Technologies Inc., a maker of engine parts for propane and natural gas vehicles, and Italy’s BRC Gas Equipment SRL, which makes kits for converting vehicles from gasoline to alternative fuels.
Sales in Europe, where gas prices are higher because of taxes, have driven growth.
The kits haven’t had the same impact in the U.S., where ethanol and hydrogen have been the preferred alternative fuels.
