Exide Corporation Announces Fiscal Year 1998 Results
5 June 1998
Exide Corporation Announces Fiscal Year 1998 Results
BLOOMFIELD HILLS, Mich., June 4 -- Exide Corporation,
, the world's leading manufacturer of starting, lighting and
ignition ("SLI") batteries and industrial batteries as well as battery
accessories, today reported fourth quarter and year-end earnings for fiscal
year 1998 which ended March 31, 1998.
Net sales for the fourth quarter were $538,657,000, up from $512,263,000
for the same period last year. Loss before extraordinary charges for the
quarter was $(5,062,000) or $(.25) basic earnings per share compared to
$(7,785,000) or $(.38) basic earnings per share a year ago.
Net sales for the year were $2,273,126,000, down from $2,333,230,000 from
fiscal year 1997. Income before extraordinary charge for the year was
$18,697,000 or $.91 basic earnings per share compared to $18,992,000 or
$.92 basic earnings per share a year ago.
"Despite the warmest winter in North America and Europe since weather
records have been kept, due principally to the effects of El Nino and despite
the devaluation of most European currencies versus the U.S. dollar, we are
pleased that sales increased over $26 million in the fourth quarter compared
with the same period last year," said Arthur M. Hawkins, Chairman. "We are
also gratified by the growth in Exide's unit volume which occurred despite a
general decline in the industry in both North America and Europe.
"In addition, I would note that for the third time in three years,
earnings per share have improved in this quarter, up $.13 when compared to the
fourth quarter one year ago due principally to our rationalization program
which continues to mitigate the impact of warm winters," said Hawkins.
"Furthermore, although the earnings for the year are essentially flat when
compared to last year, when adjusted to reflect the one-time gain on the sale
of Evanite which occurred in Fiscal 1997, and the negative impact of currency,
earnings are up 72% or $.46 versus the prior year.
"In light of these factors, we were pleased with this year's earnings and
achievements, which included the purchase of DETA Akkumulatoranwark GmbH,
MAREG Accumulatoren GmbH and FRIWO SILBERKRAFT (collectively "DETA"), the
launch of the successful Exide NASCAR Select line of batteries and accessories
and the continued European rationalization program, which remains on its
aggressive schedule," he concluded.
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 Ended For the Fiscal Year Ended
March 31, March 31, March 31, March 31,
1998 1997 1998 1997
NET SALES $ 538,657 $ 512,263 $ 2,273,126 $ 2,333,230
COST OF SALES 398,308 382,678 1,670,408 1,737,954
Gross profit 140,349 129,585 602,718 595,276
OPERATING EXPENSES:
Selling, marketing
and advertising 93,445 77,144 311,683 290,076
General and
administrative 37,221 38,277 135,606 145,869
Goodwill amortization 4,544 4,046 16,922 17,853
------- ------- ------- -------
135,210 119,467 464,211 453,798
Operating income 5,139 10,118 138,507 141,478
INTEREST EXPENSE 26,285 26,586 112,301 118,837
OTHER (INCOME) EXPENSE, net (8,319) (2,297) (5,852) (12,382)
Income (loss) before income
taxes, minority interest
and extraordinary loss (12,827) (14,171) 32,058 35,023
INCOME TAX PROVISION
(BENEFIT) (7,765) (8,527) 13,475 14,732
Income (loss) before
minority interest and
extraordinary loss (5,062) (5,644) 18,583 20,291
MINORITY INTEREST -- 2,141 (114) 1,299
Income (loss) before
extraordinary loss (5,062) (7,785) 18,697 18,992
EXTRAORDINARY LOSS RELATED
TO EARLY RETIREMENT OF DEBT,
net of income tax benefit
of $0, $0, $3,667
and $0 (11,419) (2,767) (28,513) (2,767)
Net income (loss) $ (16,481) $ (10,552) $ (9,816) $ 16,225
BASIC EARNINGS PER SHARE:
Income (loss) before
extraordinary loss $ (0.25) $ (0.38) $ 0.91 $ 0.92
Extraordinary loss (0.55) (0.13) (1.39) (0.13)
Net income (loss) $ (0.80) $ (0.51) $ (0.48) $ 0.79
DILUTED EARNINGS PER SHARE:
Income (loss) before
extraordinary loss $ (0.25) $ (0.38) $ 0.87 $ 0.90
Extraordinary loss (0.55) (0.13) (1.32) (0.13)
Net income (loss) $ (0.80) $ (0.51) $ (0.45) $ 0.77
WEIGHTED AVERAGE SHARES:
Basic 20,595,898 20,538,351 20,587,782 20,502,014
Diluted 20,595,898 20,538,351 21,641,786 21,204,241