A123 takes a financial hit as Fisker battery orders slump

A123

Advanced battery maker A123 Systems has lowered its revenue guidance figure for 2011

 

Advanced battery maker A123 Systems has lowered its revenue guidance figure for 2011, because of a steep drop in battery orders from Fisker Automotive. A123 had given a revenue guidance range of $210-225 million, but they’ve lowered that to $165-180 million. Deliveries of Fisker’s Karma PHEV have been delayed by well over a year, and that translates into less business for A123, at least for now.

CEO David Vieau said, “Our relationship with Fisker remains strong, and we expect that this reduction in volume is temporary as we understand the Karma plug-in hybrid electric vehicle has received EPA certification as well as an all-electric range rating of 51.6 miles from the European regulatory body Technischer Ueberwachungs Verein (TUV), clearing the way for vehicles sales.”

A123 is scheduled to release third-quarter financial results this Wednesday (November 9).

Meanwhile, there was good news on another front as A123 announced an expanded partnership with IHI Corporation, a Japanese manufacturer of industrial equipment. A123 will license its battery technology to IHI for use in passenger and commercial electric vehicles in Japan. IHI will also invest $25 million in A123.

 

Image: A123