UPDATE 2-Battery maker A123 sees slower demand, shares fall

Tue Nov 9, 2010 10:31pm GMT
 

* A123 posts deeper third-quarter loss on plant costs

* Battery maker says bump up in sales delayed, shares drop

* A123 says wins contract to supply SAIC batteries

* Shares fall after hours (Recasts first paragraph, adds detail, comments from CEO)

DETROIT, Nov 9 (Reuters) - A123 Systems AONE.O, which develops and builds advanced battery systems, posted a deeper third-quarter loss and warned that automakers were moving more slowly on electric car projects, sending its shares tumbling.

The Watertown, Massachusetts-based company cautioned that an increase in sales from electric-car related projects it had told investors to expect would be delayed by about half a year until the second quarter of 2011.

Shares in A123 fell 9 percent in after-hours trade.

Separately, A123 said it had won a contract to supply lithium-ion cells for an electric car to be produced by leading Chinese automaker SAIC Motor Co Ltd.

The battery pack for the 2012 model year vehicle will be developed by a joint venture between the two companies, and the cells will be shipped to China, A123 Chief Executive David Vieau said.   Continued...

Market Update

  • Africa
  • US
  • Europe
  • Asia
UK £ USD =1.5991
Euro USD =1.2603
Rand USD =0.0920