Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
A123 Predicts a Good Year, Providing Electric Cars Sell
http://www.technologyreview.com/energy/39877/?p1=A1[font face=Times, Times New Roman, Serif][font size=5]A123 Predicts a Good Year, Providing Electric Cars Sell[/font]
[font size=4]Despite losing over $250 million last year, the company remains optimistic.[/font]
Thursday, March 8, 2012
By Kevin Bullis
[font size=3]A123 Systems—the battery maker that's central to the Obama administration's efforts to establish an advanced battery industry in the United States and to greatly increase the number of battery-powered vehicles on the road—announced today that it lost $258 million in 2011, compared to $152 million in 2010. In spite of the loss, the company remains optimistic, predicting lower operating and capital costs and a 45 percent to 89 percent increase in revenue in 2012. But hitting those targets will depend on more consumers buying electric vehicles, and so far, demand has been lower than A123 expected.
Things initially looked good for A123 in 2011. Revenues increased from $18 million in the first quarter to $64 million in the third quarter, as the company sold batteries to Fisker Automotive for the Karma extended-range electric sedan. But later in the year, the Karma was delayed, and Fisker stopped ordering batteries from A123, with the intention of using up the batteries it had already ordered. That left much of A123's factory idle.
On top of that, A123 ran into production problems that decreased yields in the fourth quarter of 2011, and it had to deal with costs for repairing battery systems for the Karma and another heavy-duty battery pack made for BAE Systems.
A123's revenues dropped to $40 million in the fourth quarter last year, and the company expects revenues to fall still lower this quarter, returning to the level from the first quarter of last year, erasing the temporary gain it had from the Fisker deal and other contracts.
…[/font][/font]
[font size=4]Despite losing over $250 million last year, the company remains optimistic.[/font]
Thursday, March 8, 2012
By Kevin Bullis
[font size=3]A123 Systems—the battery maker that's central to the Obama administration's efforts to establish an advanced battery industry in the United States and to greatly increase the number of battery-powered vehicles on the road—announced today that it lost $258 million in 2011, compared to $152 million in 2010. In spite of the loss, the company remains optimistic, predicting lower operating and capital costs and a 45 percent to 89 percent increase in revenue in 2012. But hitting those targets will depend on more consumers buying electric vehicles, and so far, demand has been lower than A123 expected.
Things initially looked good for A123 in 2011. Revenues increased from $18 million in the first quarter to $64 million in the third quarter, as the company sold batteries to Fisker Automotive for the Karma extended-range electric sedan. But later in the year, the Karma was delayed, and Fisker stopped ordering batteries from A123, with the intention of using up the batteries it had already ordered. That left much of A123's factory idle.
On top of that, A123 ran into production problems that decreased yields in the fourth quarter of 2011, and it had to deal with costs for repairing battery systems for the Karma and another heavy-duty battery pack made for BAE Systems.
A123's revenues dropped to $40 million in the fourth quarter last year, and the company expects revenues to fall still lower this quarter, returning to the level from the first quarter of last year, erasing the temporary gain it had from the Fisker deal and other contracts.
…[/font][/font]
1 replies
= new reply since forum marked as read
= new reply since forum marked as read
