READING, Pa., Aug. 8 /PRNewswire-FirstCall/ -- EnerSys , the world's largest manufacturer, marketer and distributor of industrial batteries, announced today its financial results for the first fiscal quarter of 2007. Net earnings for the Company's first fiscal quarter of 2007 were $12.2 million, or $0.26 per basic and diluted share, including $0.04 per share favorable impact from a previously disclosed legal settlement, compared to net earnings of $8.8 million, or $0.19 per basic and diluted share in the first fiscal quarter of the prior year. These results exceed the range of $0.17 - $0.21 diluted EPS guidance previously provided on June 14, 2006, which also included the $0.04 favorable impact.
Net sales for the first fiscal quarter of 2007 were $359.0 million compared to $303.8 million in the comparable period of the prior year, or an increase of 18.2 percent. The results reflect the acquisition of FIAMM SpA's motive power business, which occurred on June 1, 2005, and GAZ GmbH's reserve power business, which occurred on October 11, 2006. These two acquisitions contributed sales of approximately $18 million in the first fiscal quarter of 2007 as compared to $7 million in the comparable period of the prior year, or approximately 3 percentage points of the 18.2 percent increase compared to the prior year. Additionally, foreign currency translation (primarily from the Euro) had a 2 percentage point favorable impact on the first fiscal quarter of 2007 net sales, compared to the comparable period in the prior year. Net sales, excluding the effect of foreign currency translation and acquisitions, increased 12.7 percent in the first fiscal quarter of 2007 over the same period of 2006. Approximately 3 percent of the increase in EnerSys' first fiscal quarter of 2007 sales growth is attributable to selling price recovery actions.
EnerSys' first fiscal quarter of 2007 operating results for its reporting segments, compared to the first fiscal quarter of 2006 are as follows (in millions):
Fiscal quarter ended
July 2, 2006 July 3, 2005
Operating Operating
Net Sales Earnings Net Sales Earnings
Reserve Power $158.4 $11.4 $136.3 $8.4
Motive Power 200.6 14.2 167.5 9.2
$359.0 $25.6 $303.8 $17.6
"We continue to experience strong demand for our products, which we believe is due in large part to the value we bring to our customers," said John D. Craig, Chairman, President & Chief Executive Officer of the Company. "We have experienced growth in our market share while we continue to increase the selling price of our products to offset the impact of commodity costs. We remain committed to our strategic direction and believe that our first quarter results are reflective of our efforts."
Craig added, "We anticipate that for our second fiscal quarter of 2007 diluted net earnings per share will be between $0.20 and $0.24; this excludes all costs associated with the Registration Statement filed on July 27, 2006."
This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on management's current expectations and are subject to uncertainties and changes in circumstances. The Company's actual results may differ materially from the forward-looking statements for a number of reasons. For a list of the factors that could affect the Company's results, including earnings estimates, see "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations," including "Forward-Looking Statements," set forth in the Company's Quarterly Report on Form 10-Q for the first fiscal quarter ended July 2, 2006, which was filed with the U.S. Securities and Exchange Commission.
EnerSys
Summary of Earnings
(In millions, except share and per share data)
(Unaudited)
Fiscal quarter ended
July 2, 2006 July 3, 2005
Net sales $359.0 $303.8
Gross profit 77.1 66.5
Operating expenses 54.3 48.9
Litigation settlement income (2.8) -
Operating earnings 25.6 17.6
Earnings before income taxes 17.8 13.3
Net earnings $12.2 $8.8
Net earnings per common share
Basic $0.26 $0.19
Diluted $0.26 $0.19
Weighted average shares outstanding
Basic 46,338,013 46,166,709
Diluted 47,145,216 46,366,789
EnerSys will host a conference call to discuss the Company's first fiscal quarter 2007 financial results and provide an overview of the business. The call will conclude with a question and answer session.
The call, scheduled for August 9, 2006, at 9:00 a.m. Eastern Time, will be hosted by John D. Craig, Chairman, President and Chief Executive Officer and Michael T. Philion, Executive Vice President - Finance and Chief Financial Officer.
The call will also be webcast on EnerSys' Web site. There will be a free download of a compatible media player on the Company's Web site at http://www.enersys.com/.
The conference call information is:
Date: Wednesday, August 9, 2006
Time: 9:00 a.m. Eastern Time
Via Internet: http://www.enersys.com/
Domestic Call-In Number: 800-261-3417
International Dial-In Number: 617-614-3673
Passcode: 10333885
A replay of the conference call will be available from 11:00 a.m. on August 9, 2006, through midnight on September 8, 2006.
The replay information is:
Via Internet: http://www.enersys.com/
Domestic Replay Number: 888-286-8010
International Replay Number: 617-801-6888
Passcode: 42363111
For more information, please contact Richard Zuidema, Executive Vice President, EnerSys, P.O. Box 14145, Reading, PA 19612-4145. Tel: 800-538-3627; Web site http://www.enersys.com/.
About EnerSys
EnerSys, the world leader in stored energy solutions for industrial applications, manufactures, distributes and services reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. Reserve power batteries are used in the telecommunications and utility industries, uninterruptible power suppliers, and numerous applications requiring standby power. Motive power batteries are utilized in electric forklift trucks and other commercial electric powered vehicles. The Company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.
More information regarding EnerSys can be found at http://www.enersys.com/.
