C&D Technologies Expects Weak Q3 Results
C&D Technologies Inc. (Blue Bell, PA) announced that its third-quarter earnings will be sharply lower than expected because of shortfalls at units that make batteries for industrial vehicles and power-supply products. The company said it expects to earn between $0.14 and $0.16 per share, excluding charges related to a merger that was not completed. The failed-merger charge will total about $4.0 million, or $0.09 per share, according to C&D.
"In spite of numerous steps to reduce costs, including reduction in total employment since the beginning of the year by over 25 percent, we expect our performance to fall short of expectations, as we have incurred losses in both our power electronics and motive power businesses," stated President and CEO Wade Roberts. “C&D is generating strong cash flows and debt is expected to decline over $20.0 million, to less than $95.0 million, by the end of the quarter. Further, since the beginning of September, order trends and hence backlog, are beginning to show signs of stabilization."