Exide Corporation Reports Second Quarter Fiscal 1998 Results
27 October 1997
Exide Corporation Reports Second Quarter Fiscal 1998 Results
BLOOMFIELD HILLS, Mich., Oct 27 -- Exide Corporation
, the world's leading manufacturer of lead-acid batteries, today
reported earnings for the second quarter of Fiscal 1998, ended September 28,
1997.
Net sales for the second quarter were $552,389,000, as compared to
$587,403,000 for the same period last year. Income for the quarter before the
extraordinary loss was $8,154,000, or $.38 per share, as compared to
$11,691,000, or $.56 per share one year ago. The lower sales were a result of
the devaluation of most European currencies versus the U.S. Dollar, which
accounted for almost $62 million of the shortfall. This was partially offset
by higher European automotive and industrial battery volume. The lower income
before extraordinary item was also principally attributable to the adverse
foreign exchange rates.
For the fiscal year to date ended September 28, 1997, net sales were
$1,042,754,000, as compared to $1,143,423,000. Year to date income before
extraordinary loss was $709,000 or $.03 per share, as compared to $572,000 or
$.03 per share last year.
"This quarter went exactly as expected and we are pleased that the
earnings are in line with consensus," noted Arthur M. Hawkins, Chairman and
Chief Executive Officer of Exide. "Our European consolidation and
rationalization continues as planned, except in France where the change in
government has extended the closures of the Vierzon and Nimes plants;
otherwise our earnings would have been even higher. In North America, we are
pleased with the acceptance of the NASCAR Select line, our new premium line of
products. A shift to these premium products has improved our pricing in North
America, where we have seen an increase of 2.5% in average selling prices
compared to the previous year, despite lower lead prices.
"In addition," Hawkins noted, "European original equipment sales are up 8%
year to date due to stronger new car sales. All of these factors are
particularly heartening in view of the negative impact of foreign exchange
rates -- something over which we have no control."
"We are also pleased to note that our Cwmbran (UK) plant is back up to
speed after the small fire that damaged the roof last month. Fortunately,
none of the finished products were damaged, and we are back on track," he
added.
Exide Corporation is headquartered in Bloomfield Hills, Michigan, with
administrative offices in Reading, Pennsylvania.
EXIDE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per-share data)
For the Three Months For the Six Months
Ended Ended
September 28, September 29, September 28, September 29,
1997 1996 1997 1996
NET SALES $552,389 $587,403 $1,042,754 $1,143,423
COST OF SALES 404,043 431,587 770,100 856,906
Gross profit 148,346 155,816 272,654 286,517
OPERATING EXPENSES:
Selling, marketing
and advertising 69,906 66,033 138,719 138,880
General and
administrative 31,876 33,347 63,033 72,936
Goodwill amortization 4,283 4,786 8,401 9,338
106,065 104,166 210,153 221,154
Operating income 42,281 51,650 62,501 65,363
INTEREST EXPENSE 27,834 30,701 57,098 61,457
OTHER EXPENSE (INCOME),
net 1,426 953 3,677 593
Income before income
taxes, minority
interest and
extraordinary loss 13,021 19,996 1,726 3,313
INCOME TAX PROVISION 5,085 8,614 1,526 3,609
Income (loss) before
minority interest and
extraordinary loss 7,936 11,382 200 (296)
MINORITY INTEREST (218) (309) (509) (868)
Income before
extraordinary loss 8,154 11,691 709 572
EXTRAORDINARY LOSS
RELATED TO EARLY
RETIREMENT OF DEBT,
net of income tax
benefit of $768 (1,445) -- (8,758) --
Net income (loss) $6,709 $11,691 $(8,049) $572
NET INCOME (LOSS)
PER COMMON AND COMMON
EQUIVALENT SHARE:
Income before
extraordinary loss $0.38 $0.56 $0.03 $0.03
Extraordinary loss (0.07) -- (0.41) --
Net income (loss) $0.31 $0.56 $(0.38) $0.03
WEIGHTED AVERAGE NUMBER
OF COMMON AND COMMON
EQUIVALENT SHARES
OUTSTANDING 21,680,806 20,831,086 21,463,753 20,827,766
SOURCE Exide Corporation