|C&D Technologies Reports Earnings for Third Quarter FY 2003|
Wednesday November 20, 4:32 pm ET
BLUE BELL, Pa., Nov. 20 /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 and industrial applications, today announced earnings for its third quarter ending October 31, 2002 of $5,128,000 or 20 cents per share compared to $1,848,000 or 7 cents per share in the prior year's third quarter (which included a charge of $4,000,000 on a pre-tax basis or approximately 9 cents per share on an after-tax basis, primarily due to costs related to an acquisition that did not close). Sales for the third quarter were $87,637,000 compared to the prior year's third quarter of $102,505,000. These results were in line with the company's previously announced projections. In this year's second fiscal quarter, the company had net income of $4,704,000, or 18 cents per share, on revenues of $84,292,000.
"Our company's performance in the third fiscal quarter was consistent with our expectations. Sales have stabilized in our core businesses, albeit at lower levels than the prior year, while earnings have improved, reflecting our aggressive management of costs," said Wade H. Roberts, Jr., the company's president and chief executive officer. "Based on current business conditions we expect earnings in our final fiscal quarter, ending January 31, 2003, (typically the company's slowest quarter) to be roughly comparable to those of the third quarter," Mr. Roberts stated. "We continue to seek production efficiencies, reduce debt, consider share buybacks and search for potential strategic acquisitions to facilitate C&D Technologies' growth," he said.
For the fiscal nine-month period ending October 31, 2002, net income decreased 56 percent to $13,956,000, or 54 cents per share, from $31,795,000, or $1.19 per share in the prior year. Sales for the fiscal nine-month period declined 33 percent to $255,991,000 from $383,381,000 in the prior year's comparable period.
C&D Technologies' fiscal 2003 third quarter operating results from its reporting segments were as follows:
Powercom - Sales fell 25 percent to $38,009,000, compared with $51,009,000 in last year's third quarter primarily due to lower telecommunications and uninterruptible power supply sales for reserve power systems. Operating income in the quarter decreased 34 percent to $6,340,000 from $9,622,000 in the third quarter of fiscal 2002.
Dynasty - Sales declined 14 percent in the quarter to $23,460,000 from $27,431,000 in the prior year. Primary contributors to this decrease were a decline in battery demand for uninterruptible power supplies as well as telecommunications applications, partially offset by an increase in sales to the cable market. Operating income for the segment increased 53 percent to $3,929,000 in the third quarter of fiscal 2003, compared with $2,564,000 last year.
Motive Power - Sales increased 5 percent in the third quarter to $13,903,000 from $13,280,000 in the prior year's third quarter. The segment had an operating loss of $1,058,000 in the third quarter compared to an operating loss of $1,397,000 in the prior year's comparable quarter.
Power Electronics - Sales increased 14 percent in the quarter to $12,265,000 from $10,785,000 last year. The revenue increase was due primarily to an increase in DC to DC converter sales. Operating income increased by $5,286,000 to $181,000 in the third quarter from an operating loss of $5,105,000 in the prior year's third quarter. The prior year's third quarter included one-time charges related to inventory reserves and costs related to the downsizing of the Shannon, Ireland facility.