Exide Corporation Reports First Quarter Fiscal 1998 Results
31 July 1997
Exide Corporation Reports First Quarter Fiscal 1998 Results
BLOOMFIELD HILLS, Mich., July 31 -- Exide Corporation
, the world's leading manufacturer of lead-acid batteries, today
reported earnings for the first quarter of Fiscal 1998, ended June 29, 1997.
Net sales for the first quarter were $490,365,000, as compared to
$556,020,000, for the same period last year. The lower sales were principally
a result of the precipitous decline of most European currencies, particularly
the French Franc and the German Deutsche Mark, which lost almost 15% of their
values from last year's levels in respect to the U.S. dollar. Although net
sales were down, income before extraordinary loss for the quarter was better
by $3,674 million at $(7,445) million or $(.35) per share compared to
$(11,119) million and $(.53) per share a year ago.
"We are very pleased to see the tremendous improvement in first quarter
earnings per share from $(.74) in Fiscal 1996 to $(.53) in Fiscal 1997 to
today's $(.35)," said Arthur M. Hawkins, chairman, president and CEO of Exide.
"Our first quarter is traditionally a loss due to the seasonality of the
battery business. However, we have made visible, constant progress in
reducing this seasonal loss. Battery sales are slowest in the spring months
because of the season's mild weather, and those batteries that are in demand,
such as lawn and garden, are some of our least expensive, lowest margin units.
To be better by more than $.40 a share for the first quarter in that short a
period of time -- while more than doubling the size of our company through
European expansion -- is very gratifying."
Mr. Hawkins also announced that Exide concluded its purchase of DETA
Akkumulatoranwark GmbH, MAREG Accumulatoren GmbH and FRIWO SILBERKRAFT
(collectively "DETA"), with sales in excess of DM 300 million, on July 30.
Exide plans to expand its European restructuring plans with the DETA plants,
and expects to obtain significant savings through plant rationalization and
consolidation of selling and administrative functions.
"DETA is the final strategic piece in the European consolidation effort.
By the year 2000 we will have 14 plants throughout Europe, including DETA --
six automotive and eight industrial - down from more than 35 just two years
ago," noted Mr. Hawkins. "We have firmly established our place as the
European marketshare leader with an average share of over 45%."
"We are also seeing a steady improvement in our North American business,
partially due to our new premium battery line, Exide NASCAR Select. The line
was introduced in April and has done very well in all markets. We are also
looking forward to the nationwide launch of the Exide NASCAR Select Line of
starters, alternators and chargers, which we believe will be equally
well-received," concluded Mr. Hawkins.
Exide Corporation is headquartered in Bloomfield Hills, Michigan, with
administrative offices in Reading, Pennsylvania, as well as in France and
Spain.
EXIDE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per-share data)
For the Three Months Ended
June 29, June 30,
1997 1996
NET SALES $490,365 $556,020
COST OF SALES 366,057 425,319
Gross profit 124,308 130,701
OPERATING EXPENSES:
Selling, marketing and advertising 68,813 72,847
General and administrative 31,157 39,589
Goodwill amortization 4,118 4,552
104,088 116,988
Operating income 20,220 13,713
INTEREST EXPENSE 29,264 30,756
OTHER EXPENSE (INCOME), net 2,251 (360)
Income (loss) before income taxes, minority
interest and extraordinary loss (11,295) (16,683)
INCOME TAX PROVISION (BENEFIT) (3,559) (5,005)
Income (loss) before minority interest and
extraordinary loss (7,736) (11,678)
MINORITY INTEREST (291) (559)
Income (loss) before extraordinary loss (7,445) (11,119)
EXTRAORDINARY LOSS RELATED TO EARLY
RETIREMENT OF DEBT, net of income tax
benefit of $0 (7,313) ---
Net income (loss) $(14,758) $(11,119)
NET INCOME (LOSS) PER COMMON AND COMMON
EQUIVALENT SHARE:
Income (loss) before extraordinary loss $(0.35) $(0.53)
Extraordinary loss (0.34) 0.00
Net income (loss) $(0.69) $(0.53)
WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES OUTSTANDING 21,246,700 20,824,419
SOURCE Exide Corporation