|C&D Technologies Reports Earnings for Fourth Quarter and Year|
BLUE BELL, Pa., March 5 /PRNewswire-FirstCall/ -- 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, industrial applications, and computers, today announced earnings for its fourth quarter ending January 31, 2002 of $4,279,000 or 16 cents per share compared to $16,706,000 or 61 cents per share in the prior year. Sales for the latest quarter were $88,260,000 compared to the prior year's fourth quarter of $163,589,000. These results were in line with the company's previously announced projections as well as the consensus estimates of analysts.
``While we had significant declines in sales and earnings in the fourth quarter as well as the full year as demand in our markets declined, we remained solidly profitable as we reduced costs, increased effectiveness and streamlined our operations,'' said Wade H. Roberts, Jr., the company's president and chief executive officer. ``Record operating cash flows of more than $81,000,000 enabled us to repurchase almost $11,000,000 of company stock and to reduce debt by $43,000,000 giving us a roughly .30 debt-to-equity ratio. Our strong balance sheet reinforces our ability to fund future growth and expansion, both internally and through strategic acquisitions,'' Mr. Roberts stated. ``Although the business environment remains challenging in all of our core businesses, we are confident we have a cost base and structure that will enable us to take advantage of the inevitable turnaround in the markets we serve.''
For the full fiscal year 2002, ended January 31, 2002, net income decreased 35 percent to $36,074,000, or $1.35 per share, from $55,895,000, or $2.05 per share, in fiscal year 2001. Sales for fiscal year 2002 declined 23 percent to $471,641,000 from $615,678,000 in fiscal year 2001. Diluted common shares outstanding in fiscal 2002 were 26,688,011, a decrease of 2 percent from the prior year's 27,264,528 shares.
C&D Technologies' fiscal 2002 fourth quarter operating results from its reporting segments were as follows:
Power Electronics -- Sales decreased by 65 percent in the quarter to
$12,087,000 from $34,709,000 last year. The revenue decrease was due
primarily to the decline in DC to DC converter sales to key
telecommunications customers. An operating loss of $1,230,000 in the
latest quarter compares to operating income of $5,438,000 in the prior
year's fourth quarter.
Dynasty -- Sales declined 47 percent in the quarter to $23,220,000 from
$43,628,000 in the prior year. Primary contributors to this decrease
were a decline in battery demand for uninterruptible power supplies as
well as telecommunications applications. Operating income for the
segment decreased 65 percent to $3,902,000 in the final quarter of fiscal
2002, compared with $11,228,000 last year.
Powercom -- Sales fell 40 percent to $40,195,000, compared with
$66,698,000 in last year's final quarter. Telecommunications market
demand for reserve power systems and batteries remains weak. Operating
income in the quarter decreased 44 percent to $7,637,000 from $13,548,000
in the fourth quarter of fiscal 2001.
Motive Power -- Sales dropped 31 percent in the fourth quarter to
$12,758,000 from $18,554,000 in the prior year's last quarter. The
segment had an operating loss of $1,102,000 in the quarter compared to
an operating loss of $729,000 in the prior year's quarter. The
operating loss was primarily the result of low sales volumes.
Separately, the company expects earnings in the first quarter of fiscal year 2003 to approximate those of the fourth quarter of fiscal year 2002.