Exide Corporation Reports Q1 Fiscal 1999 Results
29 July 1998
Exide Corporation Reports First Quarter Fiscal 1999 Results
BLOOMFIELD HILLS, Mich., July 28 -- Exide Corporation
, the world's leading manufacturer of lead-acid batteries, today
reported earnings for the first quarter of Fiscal 1999, ended June 28, 1998.
Net sales for the first quarter were $544,532,000, as compared to
$490,365,000 for the same period last year. The increase in sales is due
largely to the German acquisition DETA, which was not consolidated until
September 1, 1997. It is also due to continued higher automotive unit volumes
and increased industrial sales. The loss for the quarter, before an
extraordinary charge, was $(6,053,000) or $(.29) per share compared to
$(7,445,000) or $(.36) per share a year ago.
"This marks the fourth consecutive first quarter earnings report where
results have shown significant improvement," said Arthur M. Hawkins, Chairman
and CEO of Exide. "We have slashed what is traditionally a loss quarter by
more than 60%, from $(.74) in fiscal 1996 to $(.29) this year. This number
would have been $.04 better, or $(.25) per share, had it not been for a
one-time write-off of expenses associated with the financing commitments made
during a potential acquisition; a bid that was subsequently awarded to another
entity and an additional charge for bad debt for a U.S. retailer. However, we
are pleased that these improvements are consistent with our internal plan, and
they illustrate the ongoing benefits of our consolidation strategy."
"Quarter highlights include an increase of almost 400,000 automotive unit
sales in North America, primarily due to increased sales by our Branch System
and growth in our Canadian operations, and a 600,000 unit increase in Europe,
of which half is attributable to the DETA acquisition and the other half to
expansion in Spain and a strong comeback in the United Kingdom," he added.
Exide Corporation, the world's leading manufacturer of lead-acid
batteries, is headquartered in Bloomfield Hills, Michigan, with administrative
offices in Reading, Pennsylvania. Exide is traded on the New York Stock
Exchange under the symbol "EX".
EXIDE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
(Amounts in thousands, except share and per-share data)
For the Three Months Ended
June 28, June 29,
1998 1997
NET SALES $544,532 $490,365
COST OF SALES 405,402 366,057
Gross profit 139,130 124,308
OPERATING EXPENSES:
Selling, marketing
and advertising 78,531 68,813
General and administrative 36,981 31,157
Goodwill amortization 4,176 4,118
119,688 104,088
Operating income 19,442 20,220
INTEREST EXPENSE, net 26,543 29,264
OTHER EXPENSE(INCOME), net 1,390 2,251
Income(loss) before income
taxes, minority interest and
extraordinary loss (8,491) (11,295)
INCOME TAX BENEFIT (2,338) (3,559)
Income (loss) before minority
interest and extraordinary
loss (6,153) (7,736)
MINORITY INTEREST (100) (291)
Income (loss) before
extraordinary loss (6,053) (7,445)
EXTRAORDINARY LOSS RELATED
TO EARLY RETIREMENT OF DEBT,
net of income tax benefit
of $0 and $0 (301) (7,313)
Net income (loss) $(6,354) $(14,758)
BASIC EARNINGS PER SHARE:
Income (loss) before
extraordinary loss $(0.29) $(0.36)
Extraordinary loss (0.01) (0.36)
Net income (loss) $(0.30) $(0.72)
DILUTED EARNINGS PER SHARE:
Income (loss) before
extraordinary loss $(0.29) $(0.36)
Extraordinary loss (0.01) (0.36)
Net income (loss) $(0.30) $(0.72)
WEIGHTED AVERAGE SHARES:
Basic 21,152,596 20,573,209
Diluted 21,152,596 20,573,209