Exide Technologies reported financial results for its fiscal 2007 first quarter, which ended June 30, 2006. Consolidated net sales for the 2007 first quarter were $683.2 million versus $669.3 million for first quarter 2006. A slight drop in sales volume, primarily in the Transportation segments during the quarter was offset by pricing improvements that have been phased in throughout all segments over the past fiscal year.
The company had a net loss of $37.9 million or ($1.51) per share for the first quarter of 2007, compared with a net loss of $35.7 million or ($1.43) per share for the 2006 first quarter. The increase in net loss is primarily attributable to an increase in restructuring charges of approximately $6 million driven principally by the April 2006 closing of the company's automotive battery plant in Shreveport, Louisiana, and to a $6.2 million increase in interest expense resulting from higher debt and higher rates principally as a result of amendments to our credit agreement at the end of the last fiscal year. These were offset, to a degree, by improved margins.
Combined adjusted EBITDA in the first quarter of fiscal 2007 was $27.2 million, which includes $3 million of expenses for professional fees relating to the now withdrawn potential sale of the company's Industrial Energy Europe and Rest of World business segment, still a 43% increase from $19 million in the first quarter of fiscal year 2006. All business segments contributed to the overall increase.
Exide's President and CEO, Gordon A. Ulsh, commented that although Exide continued to show improvement in the first quarter of fiscal 2007, the company still has much work to do. "We are now beginning to realize some tangible benefits from the actions that we took during the past year. Although our pricing adjustments have caused a slight reduction in sales volume, the net effect is an overall increase in year-over-year revenue, gross profit, gross margin and adjusted EBITDA. Additionally, increases in the cost of lead have been offset by our more favorable pricing structure. We are also seeing a leveling off and greater stability of lead prices as we continue to pursue more cost effective lead procurement methods including continued emphasis on securing spent batteries from our customers as well as from targeted long-term contracts with core brokers."
"First quarter 2007 also marked the first period in which we allocated certain corporate expenses of an operational nature to the individual business segments that incurred them. This provides us with a more accurate picture of segment adjusted EBITDA," Mr. Ulsh said. "We are encouraged by our 2007 first quarter results but recognize that much remains to be done as we strive to achieve our full year objectives."
