SANTA ANA, Calif., Nov. 30, 2006 (PRIME NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) today announced that it has received initial OEM orders valued at approximately $6.0 million and commenced production of Environmental Protection Agency (EPA) and California Air Resources Board (CARB) certified fuel systems utilized in off-highway mobile industrial equipment. The systems enable OEM customers to meet new stringent emissions standards that become effective January 1, 2007.
These initial orders, obtained by the company's IMPCO Operations, are from recognizable market leaders in the mobile industrial market -- representing OEM manufacturers of forklifts, sweepers and man-lift equipment. In order to meet the new emissions regulations, manufacturers must install emission certified fuel systems for the equipment to be qualified for sale in the U.S.A. market on and after January 1, 2007.
The company indicated that it expects revenue contributions from this business segment to increase by 20 percent in 2007. For the nine months ended September 30, 2006, the company's IMPCO Operations contributed approximately $79.5 million in revenues.
"These initial orders represent a ramp up of business related to the new emissions regulations for the industrial market. Based on our experience with previous EPA and CARB mandates, new emissions regulations typically produce a gradual increase in business rather than extraordinarily large orders all at once. We look forward to working closely with our OEM customers to support them in meeting requirements for the new emissions standards," said Mariano Costamagna, president and chief executive officer of Fuel Systems Solutions.
Costamagna also noted that similar new emissions regulations for stationary industrial equipment, such as irrigation pumps, power generators and construction-related machinery, are expected to be mandated in 2008.
Fuel Systems Solutions is a holding company currently comprised of two operating subsidiaries, IMPCO Technologies and BRC Gas Equipment. Additional information is available at www.fuelsystemssolutions.com. IMPCO designs, manufactures, markets and supplies advanced products and systems to enable internal combustion engines to run on clean burning gaseous fuels such as natural gas, propane and biogas. IMPCO is a leader in the heavy duty, industrial, power generation and stationary engines sectors. Headquartered in Santa Ana, California, IMPCO has offices throughout Asia, Europe, Australia and North America. Additional information is available at www.impcotechnologies.com. BRC produces a complete range of systems for converting vehicles to gaseous fuel to meet market requirements. BRC is a leader in the light duty and automobile alternative fuel sectors and has established alliances with several major automobile manufacturers for OEM projects. Headquartered in Cherasco, Italy, BRC has offices throughout Asia, Europe and South America. Additional information is available at BRC's web site, www.brc.it
Some matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those discussed in any forward-looking statement. Those forward looking statements include statements relating to the $6.0 million value of recent OEM orders, expected market for its industrial products and its ability to achieve 20 percent revenue growth from the IMPCO Operations business segment in 2007. Factors that could cause or contribute to such differences between our expected future results and actual results include, but are not limited to, prevailing market and global economic conditions; changes in environmental regulations that impact the demand for the company's products; the company's ability to design and market advanced fuel metering, fuel storage and electronic control products; the company's ability to meet OEM specifications; and the level and success of the company's development programs with OEMs. Readers also should consider the risk factors set forth in the company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the Risk Factors section of the company's Quarterly Report on Form 10-Q, for the quarter ended September 30, 2006. The company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.