EnerSys, Inc. announced today results for its third quarter of fiscal 2014, which ended on December 29, 2013. Net earnings for the third quarter of fiscal 2014 were $55.3 million, or $1.10 per diluted share, including a favorable net of tax impact of $0.03 per share from a net tax credit of $22.1 million from a previously unrecognized tax asset offset by a charge of $11.3 million for restructuring plans, impairment of goodwill (net) of $2.6 million, write-off of other non-operating assets and other miscellaneous charges of $6.3 million and $0.4 million for fees related to acquisition activities.
The Net earnings of $1.10 per diluted share, compares to Net earnings per diluted share of $0.80 for the third quarter of fiscal 2013, which included an unfavorable net of tax charge of $0.08 per share from a charge of $3.5 million for restructuring plans and $0.1 million for fees related to acquisition activities. Operating earnings in the third quarter of fiscal 2014 were slightly lower compared to the third quarter of fiscal 2013. Sales increased by 15% during the third quarter compared to the prior year quarter and was offset by the impact of restructuring and impairment charges described above.
Excluding the items highlighted above, adjusted Net earnings per diluted share for the third quarter of fiscal 2014, on a non-GAAP basis was $1.07, which exceeds the guidance of $1.00 to $1.04 per diluted share given by the Company on November 6, 2013. These earnings compare to the prior year third quarter adjusted Net earnings of $0.88 per diluted share. Net sales for the third quarter of fiscal 2014 were $643.1 million, a 15% increase from the prior year third quarter net sales of $557.3 million. Sequential quarterly sales increased 13% from the second quarter of fiscal 2014 net sales of $568.8 million primarily due to strong organic volume improvements in all of our regions.
"Our record third quarter results of $1.07 adjusted diluted net earnings per share reflect strengthened order and sales volumes along with the purchase of Purcell and Quallion. We believe this positions us well for our fourth quarter which is traditionally our strongest," stated John D. Craig, chairman, president and chief executive officer of EnerSys.
Net earnings for the nine months of fiscal 2014 were $137.5 million or $2.77 per diluted share, including an unfavorable net of tax impact of $0.01 per share from a charge of $12.4 million for restructuring plans, write-off of goodwill and other non-operating assets of $8.9 million and $1.2 million for fees related to acquisition activities partially offset by a net tax credit for $22.1 million.
Net earnings for the nine months of fiscal 2013 were $128.8 million or $2.65 per diluted share, including an unfavorable net of tax impact of $0.10 per share from a charge of $4.8 million for restructuring plans and $0.2 million for fees related to acquisition activities.
Adjusted net earnings for the nine months of fiscal 2014, on a non-GAAP basis, were $2.78 per diluted share. This compares to the prior year nine months adjusted net earnings of $2.75 per diluted share. Net sales for the nine months of fiscal 2014 were $1,809.2 million, an increase of 6% from the net sales of $1,705.4 million in the comparable period in fiscal 2013. The 6% increase was primarily the result of an increase in organic volume and acquisitions.
Mr. Craig concluded, "Our fourth quarter guidance for non-GAAP adjusted net earnings per diluted share should be $1.08 to $1.12, which excludes an expected net charge of $0.15 from our ongoing restructuring programs and acquisition expenses. Based upon this, our forecasted fiscal year 2014 results will once again be a record year for EnerSys."
