Exide Technologies Reports Q2 2002 Results

November 08, 2001 by Jeff Shepard

Exide Technologies (Princeton, NJ) announced its results for the second quarter of fiscal 2002 ended on September 30, 2001. The company reported a consolidated net loss, excluding non-recurring charges, of $15.9 million, or $0.59 per diluted share. This compares to consolidated net earnings, on a pro-forma basis, for the acquisition of GNB Technologies Inc. in September 2000, excluding non-recurring charges and goodwill amortization, of $6.8 million, or $0.27 per diluted share last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) and losses on sales of receivables, excluding non-recurring charges, were $51.0 million for the quarter, as compared with $57.0 million for the same period a year ago. Pro-forma EBITDA, excluding non-recurring charges, was $76.5 million last year. Consolidated net revenues for the current quarter were $624.2 million versus $494.2 million for the same period a year ago. Pro-forma consolidated net revenues were $746.9 million last year.

Exide reported a consolidated net loss of $32.5 million, or $1.20 per diluted share, for the second quarter of fiscal 2002, compared to a consolidated net loss, including non-recurring charges, of $14.5 million or $0.68 per diluted share, for the second quarter last year.

Craig Muhlhauser, president and CEO of Exide Technologies, said, "These results are clearly disappointing. However, our three businesses remain solid, as evidenced by significant new business wins and the fact that our operating cash flow for the quarter was on target. Despite the challenging global business environment, we are confident that the strength of our market leadership and technology breadth, along with our operational restructuring plan, will provide a solid foundation for future growth and profitability. We are moving forward with many new business initiatives and continue to evaluate how we can optimize our resources to better serve our customers."

Exide also announced that it intends to work toward reduction of its salaried work force by approximately 20 percent by the end of fiscal year 2002, in addition to work-force reductions announced in August 2001. Additionally, Exide's board of directors has suspended the company's quarterly common stock dividend of $0.02 per share.