Oct. 29, 2009 (PR Newswire) --
READING, Pa., Oct. 29 /PRNewswire-FirstCall/ -- EnerSys (NYSE: ENS) the world's largest manufacturer, marketer and distributor of industrial batteries, today announced results for its second fiscal quarter of 2010, which ended on September 27, 2009.
Net earnings for the second fiscal quarter of 2010 were $12.9 million or $0.26 per diluted share, including the unfavorable highlighted charges of $0.06 per share impact from the $2.2 million, $3.2 million pre-tax, charge for our restructuring plans, and $0.6 million, $0.8 million pre-tax, of expense related to potential acquisition activities.
This compares to diluted net earnings per share of $0.48 for the second fiscal quarter of 2009, which included unfavorable highlighted charges of $0.02 per share or $0.7 million, $1.0 million pre-tax.
Adjusted net earnings for the second fiscal quarter of 2010, on a non-GAAP basis, were $0.32 per diluted share. This compares to our previous guidance of $0.25 to $0.29 per diluted share and to the prior year second quarter of $0.50 per diluted share on an adjusted and restated non-GAAP basis. These earnings were achieved despite the anticipated decline in revenue, which was partially offset by the positive effects of our cost reduction activities and further reductions in commodity costs, net of pricing. Please refer to the section included herein under the heading "Reconciliation of Non-GAAP Financial Measures" for a discussion of the Company's use of non-GAAP adjusted financial information.
Net sales for the second fiscal quarter of 2010 were $367.3 million, a decrease of 30% from the prior year second fiscal quarter net sales of $526.8 million but, a 7.9% sequential quarterly increase from the first fiscal quarter of 2010's net sales of $340.3 million. The 30% decline was attributed to a 21% decline in organic volume, 3% from weaker foreign currencies, primarily the euro, and 6% from reduced pricing related to lower commodity costs. The decline in organic volume was a direct result of reduced end-user demand caused by the global economic recession.
The Company's operating results for its reporting segments for the second fiscal quarters of 2010 and 2009 are as follows (in millions):
Reserve Motive
Power Power Consolidated
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Three months ended
September 27, 2009:
Net sales $198.0 $169.3 $367.3
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Operating earnings
before highlighted
items $24.5 $4.6 $29.1
Restructuring charges (0.7) (2.5) (3.2)
Acquisition activity
expense (0.8) - (0.8)
--- - ----
Total operating
earnings $23.0 $2.1 $25.1
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Three months ended
September 28, 2008:
Net sales $246.1 $280.7 $526.8
====== ====== ======
Operating earnings
before highlighted
items $26.6 $18.3 $44.9
Restructuring charges
(0.2) (0.8) (1.0)
--- --- ----
Total operating
earnings $26.4 $17.5 $43.9
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Net earnings for the six fiscal months of 2010 were $21.3 million or $0.44 per diluted share, including the unfavorable highlighted charges of $0.11 per share impact from the $4.7 million, $6.7 million pre-tax, charge for our restructuring plans, and the $0.8 million, $1.2 million pre-tax, for expense related to potential acquisition activities.
This compares to diluted net earnings per share of $0.98 for the six fiscal months of 2009, which included net favorable highlighted credits of $0.01 per share or $0.6 million, ($1.1) million charge pre-tax.
Adjusted net earnings for the six fiscal months of 2010, on a non-GAAP basis, were $0.55 per diluted share. This compares to the prior year second quarter of $0.97 per diluted share on an adjusted and restated non-GAAP basis. These earnings were achieved despite the anticipated decline in revenue, which was partially offset by the positive effects of our cost reduction activities and further reductions in commodity costs, net of pricing. Please refer to the section included herein under the heading "Reconciliation of Non-GAAP Financial Measures" for a discussion of the Company's use of non-GAAP adjusted financial information.
Net sales for the six fiscal months of 2010 were $707.6 million, a decrease of 37% from the prior year six fiscal months net sales of $1.12 billion. The 37% decline was attributed to a 27% decline in organic volume, 4% from weaker foreign currencies, primarily the euro, and 6% from reduced pricing related to lower commodity costs.
The Company's operating results for its reporting segments for the six fiscal months of 2010 compared to the six fiscal months of 2009 are as follows (in millions):
Reserve Motive
Power Power Consolidated
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Six months ended
September 27, 2009:
Net sales $380.8 $326.8 $707.6
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Operating earnings
before highlighted
items $45.3 $7.3 $52.6
Restructuring charges
(2.1) (4.6) (6.7)
Acquisition activity
expense (0.8) (0.4) (1.2)
--- --- ----
Total operating
earnings $42.4 $2.3 $44.7
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Six months ended
September 28, 2008:
Net sales $504.8 $614.0 $1,118.8
====== ====== ========
Operating earnings
before highlighted
items $47.6 $40.0 $87.6
Gain on sale of
manufacturing
facility 10.9 - 10.9
Legal proceedings
charge (3.4) - (3.4)
Restructuring charges (1.5) (1.7) (3.2)
--- --- ----
Total operating
earnings $53.6 $38.3 $91.9
===== ===== =====
"We were very pleased with our second quarter results, in which our adjusted, diluted earnings per share of $0.32 exceeded our previous guidance for the quarter of $0.25 to $0.29 per share. More importantly, this sequential improvement in revenue and earnings had solidified our confidence that we have turned the corner on the recession," said John D. Craig, chairman, president and chief executive officer of EnerSys. "As I have stated previously, we expected to exit this recession a stronger company than we entered it, and I believe we are on target to meet this objective. We continue to improve our gross profit margin and our liquidity and capital structure is strong. This will allow us to fund the growth we anticipate from both organic and acquisition activities. It is fortunate that we implemented the cost saving actions as early as we did since our current earnings would have been substantially lower without those actions."
Craig added, "As reported on October 27, 2009, our third quarter guidance for non-GAAP, adjusted earnings per diluted share will be between $0.35 and $0.39, which excludes an expected charge of $0.06 per diluted share from restructuring and acquisition related costs."
Reconciliation of Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S.
