|C&D Technologies Announces Third Quarter Earnings|
BLUE BELL, Pa., Nov. 20 /PRNewswire/ -- C&D Technologies, Inc. (NYSE: CHP), a leading North American producer and marketer of electrical power storage and conversion products used in telecommunications, internet infrastructure and industrial applications, announced that in its fiscal 2002 third quarter, ended October 31, 2001, net income was $4,368,000 or 16 cents per share before a charge of $4,000,000 on a pre-tax basis or approximately nine cents per share on an after-tax basis, primarily due to costs related to a potential acquisition that did not close. This compares to $14,745,000 or 54 cents per share, in the third quarter of fiscal 2001. Diluted shares for the third quarter were 26,502,000 compared to 27,424,000 last year. Sales for the fiscal 2002 third quarter decreased 37 percent to $102,505,000 from $161,922,000 in the third quarter last year.
``These results are in line with our previously announced expectations,'' said Wade H. Roberts, Jr., the company's president and chief executive officer. ``We expect operating profit performance in the fourth quarter to approximate the third quarter even though the fourth quarter has typically been our weakest.''
For the fiscal nine-month period ending October 31, 2001, sales declined 15 percent to $383,381,000, compared to $452,089,000 in the prior year's like period. Net income for the fiscal nine months declined 19 percent to $31,795,000, or $1.19 per share including the negative impact of the nine cent per share third quarter charge, from $39,189,000, or $1.44 per share, in the prior year.
Excluding the acquisition-related portion of the pre-tax charge, fiscal 2002 third quarter operating results from the reporting segments were as follows:
Powercom -- Powercom segment sales were down 26 percent to $51,009,000, compared to $68,551,000 in last year's third quarter primarily due to lower telecommunications sales for reserve power systems. Operating income in the third quarter of fiscal 2002 decreased 17 percent to $10,757,000, down from $12,921,000 in the third quarter of fiscal 2001.
Dynasty -- The company's Dynasty segment sales declined 36 percent in the third quarter to $27,431,000 from $42,805,000 in the prior year. Sales in uninterruptible power supply applications, CATV/Broadband and telecommunications decreased in the quarter compared to the same quarter of the prior year. Operating income in the third quarter for the segment decreased 69 percent to $3,232,000, down from $10,538,000 in last year's third quarter.
Power Electronics -- Power Electronics' segment sales decreased by 65 percent in the quarter to $10,785,000, from $30,927,000. The revenue decrease was primarily in DC to DC power converter sales. The segment had an operating loss of $4,512,000 in the third quarter which included one-time charges related to inventory reserves and costs related to the downsizing of the Shannon Ireland facility, compared to operating income of $4,507,000 in the prior year's third quarter.
Motive Power -- Sales in the company's Motive Power segment declined 32 percent in the third quarter to $13,280,000 from $19,639,000 in the third quarter of the prior fiscal year. The segment had an operating loss of $1,122,000 in the third quarter compared to an operating loss of $1,422,000 a year earlier.