C&D Technologies, Inc. announced financial results for the fourth quarter and year ended January 31, 2007. For the quarter, the company reported a net loss of $12.1 million, or 47 cents per share on a diluted share basis, on revenues of $132.3 million. This compared to break-even results in the prior year’s fourth quarter on revenues of $124.5 million. Results for the fourth quarter of fiscal 2007 included net restructuring and other special charges totaling $5.1 million, while results for the fourth quarter of fiscal 2006 included net restructuring and other special charges totaling $0.3 million.
For the year, the company reported a net loss of $46.1 million, or $1.80 per diluted share, on revenues of $524.6 million. This compares to a net loss of $60.7 million, or $2.39 per share, on revenues of $497.4 million in fiscal 2006. Restructuring, impairment and other special charges totaled $26.4 million and $42.8 million in fiscal 2007 and fiscal 2006, respectively.
In commenting on the financial results for the year, Dr. Jeffrey A. Graves, President and CEO of the company, said, "Fiscal 2007 was a tough year, but we took the hard actions necessary to remain competitive and establish the platform for our future success. We relentlessly addressed those factors within our control, aggressively pursuing cost savings initiatives in sourcing, manufacturing, design, and operations. As a result of these actions, we are well positioned to benefit as our markets continue to grow and as raw material prices return to historic levels."
"The continued escalation of lead and other raw material prices negatively impacted margins and operating income in our core Power Systems Division throughout fiscal 2007. We increased base prices twice during the fiscal year to partially recoup these additional costs, and we also implemented an industry-first lead surcharge mechanism. These efforts helped us to partially offset rising raw material prices and to generate a 8.6% increase in Power Systems Division revenues on a year-over-year basis. Despite these actions, higher lead and other material costs, net of pricing actions, impacted operating profit by over $6 million during the year."
Dr. Graves continued, "Our turnaround efforts at the Power Electronics Division were also a major focus in 2007. During the year, we took decisive action to improve the division’s manufacturing platform and reduce our cost base, including our move to new contract manufacturers and consolidation of our design and development activities. These initiatives began to drive improved cost performance in the fourth quarter and will reap further benefits in fiscal 2008 and beyond. Unfortunately, these improvements were masked by a softening in the end markets in the third and fourth quarters, and accompanying erosion of pricing with our Tier One customer base. Our previously announced initiative to pursue the possible divesture of this division is well underway."
