Unique Mobility Takes a Charge against Second-Quarter Earnings
Unique Mobility (Golden, CO) recently announced that, following a reassessment of its investments, it will take a charge against earnings for its second quarter ended September 30, 1999 of approximately $4.5 million or $0.27 per share. The charge arises from the write-down of its investments in three joint ventures; Unique Mobility Europa GmbH, Taiwan UQM Electric Co. Ltd. and EV Global Motors Company and a charge against the retirement of the company's former CEO."Our investments in these joint ventures were directed toward participating in a potentially large emerging market for 'electric' automobiles, scooters and bicycles, however, these markets are developing slower than expected and the timing of revenue levels sufficient to provide a return on our invested capital has become uncertain," said William G. Rankin, president and CEO of Unique. "Although 'electric' vehicles will likely meet with acceptance in selected 'niche' markets, industry focus has shifted to 'hybrid electric' vehicles which have the potential to achieve broad market acceptance."Mr. Rankin went on to state that the move should not be viewed as a shift away from Unique's advanced vehicle operations. He said that the company is actively involved in a wide range of product developments including hybrid electric drive systems, and said that, "Our focus is to move these developed products into production as soon as practicable. In addition, we are leveraging these developments into existing markets; wind turbines, stationary power generators and industrial vehicles."
