A123 Falls After Cutting Sales Forecast on Fisker Orders
November 06, 2011, 8:48 PM ESTBy Craig Trudell
(Updates with closing share price in second paragraph.)
Nov. 4 (Bloomberg) -- A123 Systems Inc., the maker of batteries for electric vehicles, fell the most in more than a month after cutting its sales forecast on reduced orders by Fisker Automotive Inc.
A123 fell 10 percent to $3.17 at the close of New York trading. The shares have plunged 67 percent this year.
Full-year sales will be in the range of $165 million to $180 million, Waltham, Massachusetts-based A123 said today in a statement. Analysts expected revenue of $204 million, the average of 12 estimates compiled by Bloomberg. The company’s previous forecast was for sales of $210 million to $225 million.
A123, a supplier of batteries for automakers including General Motors Co. and Daimler AG, said Fisker lowered orders of packs for its Karma plug-in hybrid electric vehicle. Irvine, California-based Fisker is balancing inventories from all suppliers, said David Vieau, chief executive officer of A123, without being more specific.
“Our relationship with Fisker remains strong, and we expect that this reduction in volume is temporary,” Vieau said in the statement. “We are executing a plan that we believe will manage costs in the near term while allowing us to maintain the manufacturing and operational capabilities required to quickly ramp up production.”
A123 said Fisker’s Karma plug-in hybrid received Environmental Protection Agency certification and an all- electric range rating of 51.6 miles from Europe’s regulator Technischer Ueberwachungs Verein, clearing the way for vehicle sales.
Electric Spark
GM said Oct. 12 that A123 will supply battery packs for its Chevrolet Spark electric subcompact going on sale in 2013. The Detroit-based automaker may sell 15,000 electric Sparks in the model’s first year, Dan Galves, a New York-based analyst for Deutsche Bank, wrote in an Oct. 13 research note. Deliveries may rise to 20,000 in 2014, he said.
A123 has reported losses in every quarter since 2008 and went public in September 2009. The battery maker’s second- quarter loss widened to $55.4 million, from $34.2 million a year earlier, according to an Aug. 4 statement. Sales were $54.5 million in the six months ending June 30.
A123 will release results for the quarter ending Sept. 30 before the start of trading on Nov. 9. The battery maker’s other customers include Bayerische Motoren Werke AG and Shanghai Automotive Industry Corp.
--Editors: Jamie Butters, John Lear
To contact the reporter on this story: Craig Trudell in Southfield, Michigan, at ctrudell1@bloomberg.net
To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net
