10.11.06

10.11.2006: Meldung: Exide Technologies: Second Quarter 2007 Results

Exide Technologies Reports Second Quarter 2007 Results
Thursday November 9, 5:02 pm ET

ALPHARETTA, Ga.-- Exide Technologies, a global leader in stored electrical-energy solutions, today reported its financial results for its fiscal 2007 second quarter, which ended September 30, 2006.


Quarter

Consolidated net sales for the fiscal 2007 second quarter were $680.3 million versus $686.5 million for fiscal 2006 second quarter. Many of our markets experienced drops in unit volume, which were partially offset by the favorable impact of recent pricing actions in both Transportation and Industrial Energy. Much of the lower unit volumes in both of our Transportation segments can be directly attributed to our pricing strategy to drive customer profitability to more appropriate levels or sever relationships where reasonable profitability could not be achieved. In our Industrial Energy North America business, we continue to enjoy strong growth in our motive power product lines. These increases have been more than offset by a soft network power market, including lower sales to the U.S. Navy as they transition to our Valve Regulated Lead Acid (VRLA) technology.

The Company had a net loss of $35.1 million or ($1.16) per share for the second quarter of 2007, compared with a net loss of $33.0 million or ($1.29) per share for the 2006 second quarter. The slight increase in net loss is primarily attributable to increased interest expense as a result of higher debt levels and higher interest rates related to amendments to our credit agreement made in the fourth quarter of fiscal 2006. Net loss per share for the second quarter of fiscal 2007 was impacted by higher weighted average shares outstanding as a result of the Company"s $75 million rights offering and $50 million private sale of common stock.

Adjusted EBITDA in the second quarter of fiscal 2007 was $33.4 million, a 34% increase over fiscal 2006 Adjusted EBITDA of $24.9 million. The increase in Adjusted EBITDA is attributable to improved margins as a result of pricing actions, and a decrease in general and administrative expenses of approximately $6.7 million related to headcount reductions and other organizational and operational streamlining initiatives. These factors were partially offset, however, by higher lead costs.

The Company uses Adjusted EBITDA as a key measure of its operational financial performance, as it is an important element of its bank agreement covenants. This measure underlies the Company"s operational performance and excludes the nonrecurring impact of the Company"s current restructuring actions. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and restructuring charges. Our Adjusted EBITDA definition also adjusts reported earnings for the effect of non-cash currency remeasurement gains or losses, the non-cash gain or loss from revaluation of the Company"s warrants liability, impairment charges and non-cash gains or losses on asset sales. See the reconciliations of net losses to Adjusted EBITDA in the attachments to this release.

Fiscal Year-To-Date

Consolidated net sales for the first six months of fiscal 2007 were $1,363.5 million versus $1,355.8 million for the first six months of fiscal 2006. Excluding the favorable impact of exchange rates, sales were slighty down year-over-year principally due to lower unit volume in our Transportation North America business driven by our pricing actions and soft network power demand in North America.

The Company had a net loss of $73.0 million or ($2.61) per share for the first six months of 2007, compared with a net loss of $68.7 million or ($2.69) per share for the first six months of 2006. The increase in net loss is primarily attributable to an increase in restructuring charges of approximately $6.4 million driven principally by the April 2006 closing of the Company"s automotive battery plant in Shreveport, Louisiana, and to a $12.2 million increase in interest expense due to higher debt and higher rates resulting from the recent amendments to our credit agreement. These were offset, to a degree, by improved operating results as more fully described below in our discussion of Adjusted EBITDA. Net loss per share was also impacted by an increase in weighted average shares outstanding as a result of the rights offering and private sale of common stock, as discussed above.

Combined Adjusted EBITDA for the first six months of fiscal 2007 was $60.6 million, an increase of 38% over fiscal 2006 Adjusted EBITDA of $44.0 million.. The increase in Adjusted EBITDA is attributable to improved margins as a result of pricing actions, slight reductions in selling, marketing, and advertising costs, and savings of approximately $4.5 million in general and administrative expenses as a result of ongoing initiatives to streamline the organization. These savings were partially offset, however, by higher lead and fuel costs.


About Exide Technologies:

Exide Technologies, with operations in 89 countries, is one of the world"s largest producers and recyclers of lead-acid batteries. The Company"s four global business groups - Transportation North America, Transportation Europe and Rest of World, Industrial Energy North America and Industrial Energy Europe and Rest of World - provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.

Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and 42-volt automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.

Further information about Exide, including its financial results, are available at www.exide.com.



Contact:

Exide Technologies
Media Contacts:
J.Addams & Partners, Inc.
Jeannine Addams
Kristin Wohlleben, 404-231-1132
jfaddams@jaddams.com
kwohlleben@jaddams.com
or
Investor Contact:
Todd Atenhan, 770-425-7877
investorrelations@exide.com

Source: Exide Technologies
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