Stuart Energy to Take One-Time Charge
Stuart Energy Systems Corp. (Toronto, ON) announced that it will take a one-time charge of CDN$6.0 million in its fourth-quarter 2002 financial results in connection with the retrofit of nine hydrogen systems, including costs related to customer support and inventory replacement.
The affected components are covered under Stuart Energy's warranty program and are scheduled for replacement by the end of the calendar year. The retrofit will have no effect on future deliveries of the company's products or on its announced milestones.
The retrofit of the hydrogen-generating systems built for customers between March 2001 and April 2002 is in response to discovery of a batch of nonconforming, outsourced components. The affected components, which include gas handling and generating parts, require retrofit in order to meet specified product-life requirements of the hydrogen systems. All affected customers are being notified and corrective actions have been initiated.