Tuesday, October 16, 2012

Notable Losers: A123 Systems, Inc. (NASDAQ:AONE) & Brown & Brown (NYSE:BRO)

Insurance broker Brown & Brown, Inc.(NYSE:BRO) on Tuesday reported a 12 percent rise in its net income on higher commissions and fees.
The company said it earned $49.5 million, or 34 cents per share, in the quarter ended Sept. 30. That's up from $44.2 million, or 30 cents per share, in the same quarter last year.
The profit fell a penny short of average Wall Street predictions of 35 cents per share.
Revenue rose 17 percent to $303.8 million, from $260.4 million last year, below analysts' expectations for $311.1 million.
Commissions and fees increased nearly 18 percent to $302.3 million, while investment income dropped 25 percent to $239,000 and other income dropped 57 percent to $1.3 million.
Brown & Brown shares fell 99 cents to $25.31.
A123 Systems, Inc.(NASDAQ:AONE) said on Tuesday that it is likely to default on its debt obligations and it would soon seek bankruptcy protection.
The company revealed this is a regulatory filing with the Securities and Exchange Commission.
About two months back the company, which makes batteries for electric vehicles, had announced a $450 million loan from a Chinese company as a survival measure. It is getting a waiver on that debt now.
The company said it expects to miss payments Tuesday on its $143.8 million in 2016 notes and $2.8 million in 6 percent notes.
Three years ago when A12 had gone public it raised a lot of expectations and hopes. Shares soared 50 percent to more than $20 on the first day.
The company also got a $249 million government grant to help it build a battery factory in Michigan. Shares were trading at 0.0611 cents on Tuesday, slumped 75%.

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