Oct. 27, 2009 (PR Newswire) --
READING, Pa., Oct. 27 /PRNewswire-FirstCall/ -- EnerSys (NYSE: ENS) the world's largest manufacturer, marketer and distributor of industrial batteries, announced today preliminary results for the second quarter of fiscal 2010. The Company expects to report net sales of approximately $367 million and net earnings of $12.9 million, or $0.26 per diluted share. These earnings include pre-tax highlighted items totaling $4.0 million for restructuring and acquisition related costs, which is equivalent to $2.8 million after tax, or $0.06 per diluted share. Therefore, on an adjusted, non-GAAP basis, second quarter net earnings are expected to be $15.7 million, or $0.32 per diluted share. This compares to their previous guidance of $0.25 to $0.29 per diluted share on an adjusted, non-GAAP basis.
The company also announced that it anticipates diluted earnings per share of $0.29 to $0.33 for the third quarter of fiscal 2010. This includes expected highlighted items of approximately $0.06 per diluted share for restructuring and acquisition related costs. Therefore, on an adjusted, non-GAAP basis, third quarter net earnings per diluted share are expected to be between $0.35 and $0.39.
The Company will discuss this information at a meeting of investors tomorrow, October 28, 2009. The Company also confirms that it intends to release its full earnings report for the second quarter, along with its Quarterly Report on Form 10-Q, after the close of business on October 29, 2009.
Reconciliation of Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). EnerSys' management uses the non-GAAP measure "adjusted net earnings" in their analysis of the Company's performance. This measure, as used by EnerSys in past quarters and years, adjusts net earnings determined in accordance with GAAP to reflect changes in financial results associated with the Company's restructuring initiatives and highlighted charges and income items. Management believes the presentation of this financial measure reflecting these non-GAAP adjustments provides important supplemental information in evaluating the operating results of the Company as distinct from results that include items that are not indicative of ongoing operating results; in particular, those charges that the Company incurs as a result of restructuring activities associated with its acquisitions and those charges and credits that are not directly related to operating unit performance and are unusual in nature. Because these charges are incurred as a result of an acquisition and in connection with secondary offerings on behalf of certain of our stockholders, they are not a valid measure of the performance of our underlying business.
