C&D Technologies Announces First Quarter Results
C&D Technologies, Inc. announced financial results for the first quarter ended April 30, 2007. For the quarter, the company reported net income of $2.6 million, or $0.10 per share on a diluted share basis, on revenues of $130.8 million. This compared to a net loss of $8.7 million, or $0.34 per share on revenues of $129.2 million in the prior year’s first quarter.
Results for the first quarter of fiscal 2008 included a non-recurring gain recognized on the disposal of the company’s old joint venture Chinese plant of $15.2 million, and restructuring costs associated with the closure of the company’s Conyers, Georgia manufacturing facility of approximately $200,000. The comparable prior year’s first quarter included net restructuring and other special charges of $2.3 million.
Dr. Jeffrey A. Graves, President and CEO said, "All told, first quarter performance was again hindered by accelerating lead costs, which are up roughly 33% to date since the beginning of the year to new historic highs. On the positive side, we’re very pleased with the continued strength of Standby Power, our core business, which maintained strong top-line momentum while demonstrating solid progress in our cost reduction programs. We were similarly pleased with our Power Electronics Division, which delivered stable financial results in a challenging end-market, while we continue to explore strategic alternatives for the business. Motive Power continued to struggle with market challenges and warranty experience."
In the first quarter, the Standby Power Division posted total net sales of $75.6 million, and operating profit of $15.9 million, which included the previously-mentioned gain on the sale of the company’s former joint venture manufacturing facility in Shanghai, China and severance costs associated with the closure of the Conyers facility. Excluding these items, operating profit would have been approximately $1.0 million. Revenues were up 13.4% compared to last year’s first quarter, and 1.8% on a sequential basis, largely as a result of price increases sequentially but also with strong volume performance versus a year ago.
The Motive Power Division posted total net sales of $12.8 million, and an operating loss of $2.4 million. Revenues decreased 13.2% compared to last year’s first quarter, and 15.9% sequentially.
In the first quarter, the Power Electronics Division posted total net sales of $42.3 million, roughly flat on a sequential basis, and an operating loss of $1.7 million. Versus the prior year, revenues declined from $47.7 million in the prior year’s first quarter.