1400 Union Meeting Road
Blue Bell, PA 19422
Phone: 215-619-2700
Shareholder Contacts:
Stephen E. Markert, Jr. of C&D: 215-619-7835
Yanis Bibelnieks for C&D: 718-499-6516
C&D TECHNOLOGIES REPORTS EARNINGS FOR
FIRST QUARTER FY 2004
BLUE BELL, PA, May 27, 2003 - 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 net income for its first
quarter ending April 30, 2003 of $2,822,000 or 11 cents per share
compared to $4,124,000 or 16 cents per share in the prior year's first
quarter. Sales for the first quarter were $77,368,000 compared to the
prior year's first quarter of $84,062,000.
"We're pleased that despite beginning the quarter with a weak February
coupled with continued weakness in our major markets, we operated
profitably, generated positive cash flow, reduced debt and repurchased
company shares while increasing the backlog modestly," said Wade H.
Roberts, Jr., the company's president and chief executive officer. "As
for the quarter ending July 31, given the last two months of the first
quarter and the tempo thus far of the month of May, we anticipate a
double-digit percentage increase in our earnings, compared to those of
the first quarter. Assuming the last three months' (March, April and
May to date) sales trend continues, due to our operating leverage, we
would expect a solid flow through of (incremental) profit per sales
dollar," Mr. Roberts stated.
C&D Technologies' fiscal 2004 first quarter operating results from its
reporting segments were as follows:
Powercom - Sales fell 13% to $31,860,000, compared with $36,488,000 in
last year's first quarter primarily due to lower telecommunications
sales. Operating income in the quarter decreased 32% to $4,078,000
from $6,004,000 in the first quarter of fiscal 2003.
Dynasty - Sales increased 12% in the quarter to $23,592,000 from
$21,056,000 in the prior year. This increase was primarily due to an
increase in uninterruptible power supply sales partially offset by
sales to the cable market. Operating income for the segment increased
45% to $3,471,000 in the first quarter of fiscal 2004, compared with
$2,392,000 in the prior year.
Motive Power - Sales decreased 6% in the first quarter to $12,880,000
from $13,675,000 in the prior year's first quarter. The business had
an operating loss of $1,544,000 in the first quarter compared to an
operating loss of $1,057,000 in the prior year's comparable quarter.
Power Electronics - Sales decreased 30% in the quarter to $9,036,000
from $12,843,000 last year. The revenue decrease was due primarily to
a decline in DC to DC converter sales. The business had an operating
loss of $594,000 in the quarter compared to operating income of
$136,000 in the prior year's first quarter.
This press release may contain forward-looking statements (within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934). Words and expressions
reflecting something other than historical fact are intended to
identify forward-looking statements, but are not the exclusive means
of identifying such statements. Factors that appear with the
forward-looking statements, or in the company's Securities and
Exchange Commission filings (including without limitation the
company's annual report on Form 10-K for the fiscal year ended January
31, 2003, could cause the company's actual results to differ
materially from those expressed in any forward-looking statements made
herein.
# # # # #
C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(In thousands, except for per share data)
(Unaudited)
Three months ended
April 30,
Summary of earnings 2003 2002
---- ----
Net sales $77,368 $84,062
Gross profit 16,992 18,646
Selling, general and
administrative expenses 9,170 8,809
Research and development
expenses 2,411 2,362
Operating income 5,411 7,475
Income before income taxes
and minority interest 4,695 6,297
Net income before minority
interest 2,958 3,967
Net income 2,822 4,124
Basic earnings per share 0.11 0.16
Diluted earnings per share 0.11 0.16
Weighted average shares
outstanding:
Basic 25,650 25,971
Diluted 25,760 26,273
Other financial data
Operating cash flow $7,219 $17,994
Depreciation and amortization 5,812 6,252
C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION (CONT.)
(Dollars in thousands)
(Unaudited)
Selected Balance April 30, January 31,
Sheet data 2003 2003
---------- ---- ----
Total cash $ 8,101 $ 12,966
Total assets 374,891 382,156
Total debt 30,600 39,919
Total equity 258,460 258,274