CAP.L Share News (CAP)

Clean Air Power (CAP), a San Diego based developer of compression-ignited natural gas engine management systems, expects results to be "significantly below" average due to trading difficulties. The firm published a press release on Friday stating the concerns of management, accompanied by some of CAP's more promising accomplishments, including a letter of intent to begin production in South East Asia.The report concentrated on the recent challenges faced in Europe, as well as detailing unexpected technical delays in achieving certain emissions standards.The report outlines in particular that the introduction of Euro 6 emissions standards in Europe has been a significant challenge for the firm.CAP's chief executive officer, John Pettitt, said: "Our business is in a challenging transitional period in which our focus is moving from a European market at the end of its product lifecycle towards two new, sizable and attractive markets in Russia and the US where we are preparing product launches."As we manage this transition there will be a short-term impact on sales but the long-term opportunity for Clean Air Power as a design, development and delivery partner on OEM and Tier 1 compression-ignited natural gas engine programmes, remains significant."This potential was demonstrated by the recent letter of intent with a global truck manufacturer to commence the first phase of a production development program for an engine for the South East Asian market."Following the press release, CAP's share price plummeted 32.84% as of 15:36 on Friday