EnerSys announced results for its third quarter of fiscal 2011, which ended on January 2, 2011. Net earnings for the third quarter of fiscal 2011 were $33.7 million, or $0.67 per diluted share, including an unfavorable highlighted $0.04 per share impact from the $1.4 million, $1.8 million pre-tax, charge for restructuring plans and $0.5 million, $0.6 million pre-tax, for fees related to acquisition activities. Excluding these highlighted items, adjusted net earnings for the third quarter of fiscal 2011, on a non-GAAP basis, were $0.71 per diluted share, which exceeded the guidance of $0.59 to $0.63 per diluted share given by the company on November 9, 2010, largely from higher sales volume and the favorable settlement of a foreign tax audit of $2.5 million. These earnings compare to the prior year third quarter adjusted net earnings of $0.44 per diluted share.
The net earnings of $0.67 per diluted share, which includes the highlighted items, compares to diluted net earnings per share of $0.47 for the third quarter of fiscal 2010, which included a favorable highlighted impact of $0.03 per share from the $2.9 million (tax-free) bargain purchase gain on the Oerlikon Battery acquisition partially offset by the $0.7 million, $1.1 million pre-tax, charge for restructuring plans and the $0.5 million, $0.7 million pre-tax, expense related to acquisition activities.
Net sales for the third quarter of fiscal 2011 were $508.6 million, an increase of 21% from the prior year third quarter net sales of $421.3 million and an 8% sequential quarterly increase from the second quarter of fiscal 2011’s net sales of $472.8 million. The 21% increase was the result of an 18% increase in organic volume, 3% from acquisitions, and 3% due to pricing, which was partially offset by a 3% decrease from weaker foreign currencies, primarily the euro and British pound. The sequential revenue increase of $35.8 million in the third quarter was due primarily to organic volume growth.
Net earnings for the nine months of fiscal 2011 were $83.3 million or $1.67 per diluted share, and included the unfavorable impact from highlighted charges of $0.10 per share. Also included in the nine months of fiscal 2011 earnings is a $2.5 million favorable settlement of a foreign tax audit. Highlighted charges include $4.1 million, $5.2 million pre-tax, for restructuring plans and $1.0 million, $1.3 million pre-tax, for expenses related to acquisition activities.
Net earnings for the nine months of fiscal 2010 were $44.5 million or $0.91 per diluted share, and included the unfavorable impact from highlighted items of $0.08 per share from the $5.4 million, $7.8 million pre-tax, charge for the restructuring plans and the $1.3 million, $1.9 million pre-tax, expense related to potential acquisition activities. These unfavorable items were partially offset by the $2.9 million (tax-free) bargain purchase gain arising out of the Oerlikon Battery acquisition.
Net sales for the nine months of fiscal 2011 were $1,416.4 million, an increase of 26% from the net sales of $1,128.8 million in the comparable period in fiscal 2010. The 26% increase was the result of a 19% increase in organic volume, 5% increase due to pricing, a 5% increase from acquisitions, partially offset by a 3% decrease from weaker foreign currencies, primarily the euro and British pound.
