Westport shares rise on prospects for engine deal

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DETROIT

Shares of natural gas engine maker Westport Innovations Inc. rose Thursday after Ryder Systems Inc. said plans to deploy 200 natural-gas trucks as part of a rental and leasing project in California.

Canada-based Westport has not yet received a purchase order for the engines, but expects it will provide 200 engines for the project, Janney Capital Markets analyst John Roy said in a note to investors. Westport currently has a "Buy" rating from Janney.

Miami-based Ryder said Thursday that this will be the first time natural gas trucks will be used in such a large rental and leasing operation. San Bernardino County obtained $19.3 million in state and federal stimulus money for the project.

Ryder will provide the low-emission trucks, which use both liquefied and compressed natural gas for fuel. Ryder customers will be able to use the trucks for short-term rentals or long-term leasing. Ryder also will build new natural gas refueling stations in the region and help customers find existing refueling locations.

Westport could get a "significant commitment from Ryder," Roy said. Ryder could replicate the project in other areas of the country. It currently has 6,000 commercial trucks in operation in Southern California. Nationwide, Ryder has a fleet of 157,600 vehicles, according to the analyst.

Westport shares rose 7 percent, or $1.27, to $18.60 in early afternoon trading and earlier hit a 52-week high of $19.

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