IBJNews

Ener1 stock takes beating after Think write-down

Back to TopCommentsE-mailPrintBookmark and Share
On The Beat Industry News In Brief

The stock market has punished battery maker Ener1 since executives revealed a $73 million write-down on its stake in Think, the electric car company.

Shares of Ener1 hit a new 52-week low of $1.42 before closing at $1.52 on May 13.

The company reported on May 10 a first-quarter loss of $84.7 million. Net sales were $23.1 million, up 110 percent from the year-ago quarter.

Ener1, which engineers and builds its lithium-ion batteries in the Indianapolis area, is the exclusive supplier for Think, a privately held Norwegian company that began assembling its City car in Elkhart last year. Ener1 also became one of Think’s key financial backers.
 

OTB manufacturing Ener1, the parent company of Indianapolis battery maker EnerDel, wrote off its investment in Think, an electric car. (IBJ File Photo)

“Think faces the need to recapitalize its go-forward business plan,” Ener1 CEO Charles Gassenheimer said during a conference call. “While Think faces this challenge, Ener1 will be guided by two principles: No additional funds will be provided to Think by Ener1, and Ener1 will try to avoid consolidating or increasing its equity exposure to Think.”

Most of Ener1’s first-quarter loss was a $59.4 impairment charge on Think equity. Ener1 wrote down another $13.9 million on financial instruments, “primarily as a result of the impairment charge.”

The total write-off was $73.3 million.

Gassenheimer said Ener1 decided to write down its equity position because of Think’s inability to raise additional capital and its longer-than-expected delay in re-starting operations.

Ener1 halted battery production for Think earlier this year because the carmaker needed to work through a backlog. The stoppage contributed to Ener1’s layoffs in March, which affected 3 percent of 770 employees worldwide. (The number of people laid off at offices in Indianapolis and a Mount Comfort manufacturing plant were not disclosed.)

Ener1 realized last year that its business wouldn’t survive on selling to the electric car market, and it has shifted its emphasis to electric utilities and heavy-duty vehicles.

Gassenheimer reassured investors that Ener1 has the resources to finance the rest of its business plan. He expects Ener1 to post positive EBITDA (earnings before interest, taxes, depreciation and amortization) this year.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Hello Dear Are you tired of Seeking Loans and Mortgages,have you Been Turned down constantly By your banks and Other Financial Institutions or Micro Finance scheme. This is let you know with 100% guarantee that we Offer loans ranging from $1,000 Minimum to $1,000,000.00 Maximum at 3% interest rate per Month. We give out LOANS for developing business. a competitive edge/business expansion. email address: michealscottloan124@gmail.com We offer the following kinds of loans and many more; * Personal Loans ( Unsecured Loan) * Business Loans ( Unsecured Loan) * Consolidation Loan * Combination Loan * Home Improvement * Xmas Loans for contact to seek for loan email this email address: michealscottloan124@gmail.com Thanks

  2. My name is Mr Henry Josh and i live in the USA California and life is worth living right now for me and my family and all this is because of one man sent by GOD to help me and my family, i once had a life filled with sorrow because my first SON needed a kidney transplant and all our savings were going towards his medications and this normally leaves us with no money to pay our bills or even put enough food on our table and our rent was due and no funds to pay these bills and life felt so unfair to me and every night my wife will cry herself to sleep every night until one day, i was browsing through yahoo answers and i saw a striking advert of a man that gives out personal loans and that the offer is opened to all and i have heard so many things about internet scams but at this point of my life, i was very desperate and ready to take any risk and at the end of the day, i applied for this loan and from one step to another, i got my loan within 12 hours through bank transfer and you know, it was all like a dream and i called Mr Daniel Jones A Man who is the GOD sent lender i found and said, i have received my loan and he smiled stating that to GOD be the glory and i was so shocked as i have never ever seen anyone with such a GOD fearing and kind heart and today, i am the happiest man on earth because by GOD’S grace, my SON kidney transplant was successful and today he is healthy, i and my family are living very comfortable and happy and if you are in my former situation or in serious and legitimate need of a loan, you can reach this GOD sent lender via fidelityloanfirm@outlook.com

  3. Greetings to everyone reading this comment!!! I am Greg William by name. I am out here to recommend the effort of Mark Oscar,I was in need of a consolidation loan amount of 50,000 and as soon as I got in contact with Mark Oscar Loan Firm on Wednesday last week and on Friday last week as well I receive an alert from my bank(Royal Bank of Scotland Group) that the fund was transferred,I want everybody on this site to contact Mark Oscar now via email on how to get a loan because I got my loan from them and I am very happy,so contact them now. Oscarloanfinance@hotmail.com Thanks!!!!!!

  4. Elected officials, like Mourdock, get vested in 8 years. It takes 10 years for all other public employees, most of whom make a lot less money. So much for the promise to finish out his term.

  5. Great state treasurer and a good man!! Just curious if the folks who didn't quite understand his quote would like to tell my daughter-in-law that God didn't intend her! Mourdock's comment was correct but twisted and the article didn't mention that his opponent and the press let the impression stand that Mourdock meant that the rape was intended. Stupid people!!

ADVERTISEMENT