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
SECOND QUARTER FY 2004
BLUE BELL, PA, August 28, 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 second quarter ending July 31, 2003 of $3,580,000 or 14 cents
per share compared to $4,704,000 or 18 cents per share in the prior year's
second quarter. Net sales for the second quarter were $81,364,000 compared to
the prior year's second quarter of $84,292,000, but were up from net sales of
$77,368,000 in the first quarter of this year, with earnings per share up over
10% from the first quarter's 11 cents per share.
"The second quarter results reflect our continuing focus on cost controls in a
difficult business environment," stated Wade H. Roberts, Jr., president and
chief executive officer of the company. "This focus has enabled us to produce a
solidly profitable quarter, generate strong operating cash flow and reduce debt
to a four-year low. We are encouraged by the modest sequential improvement in
sales and profit over the first quarter. This sales increase, the first in three
quarters, combined with increased quotation activity, higher order backlog and a
book-to-bill ratio slightly greater than one, gives us confidence that third
quarter earnings per share could increase by a double digit percentage over the
just-concluded second quarter," he said.
For the fiscal six-month period ending July 31, 2003, net income decreased 27%
to $6,402,000, or 25 cents per share, from $8,828,000, or 34 cents per share for
the first six months of the prior year. Sales for the fiscal six-month period
declined 6% to $158,732,000 from $168,354,000 in the prior year's comparable
period.
C&D Technologies' fiscal 2004 second quarter operating results from its
reporting segments were as follows:
Powercom - Sales fell 6% to $33,354,000, compared with $35,668,000 in last
year's second quarter primarily due to lower telecommunications sales. Operating
income in the quarter decreased 20% to $4,257,000 from $5,306,000 in the second
quarter of fiscal 2003.
Dynasty - Sales increased 13% in the quarter to $26,010,000 from $23,054,000 in
the prior year's second quarter. This increase was primarily due to an increase
in uninterruptible power supply sales. Operating income for the segment was
relatively constant at $4,002,000 in the second quarter of fiscal 2004, compared
with $4,018,000 in the prior year.
Motive Power - Sales decreased 9% in the second quarter to $11,958,000 from
$13,077,000 in the prior year's second quarter. The business had an operating
loss of $1,649,000 in the second quarter compared to an operating loss of
$1,138,000 in the prior year's comparable quarter.
Power Electronics - Sales decreased 20% in the quarter to $10,042,000 from
$12,493,000 in the prior year's second quarter. The revenue decrease was due
primarily to a decline in DC to DC converter sales. The business had an
operating loss of $391,000 in the quarter compared to operating income of
$440,000 in the prior year's second 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) which are based on management's current expectations and
are subject to uncertainties and changes in circumstances. 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 Six months ended
July 31, July 31,
Summary of earnings 2003 2002 2003 2002
------------------- ---- ---- ---- ----
Net sales $81,364 $84,292 $158,732 $168,354
Gross profit 19,078 20,202 36,070 38,848
Selling, general and
administrative expenses 10,524 9,044 19,694 17,853
Research and development
expenses 2,335 2,532 4,746 4,894
Operating income 6,219 8,626 11,630 16,101
Income before income taxes
and minority interest 5,605 7,688 10,300 13,985
Net income before minority
interest 3,531 4,844 6,489 8,811
Net income 3,580 4,704 6,402 8,828
Basic earnings per share 0.14 0.18 0.25 0.34
Diluted earnings per share 0.14 0.18 0.25 0.34
Weighted average shares
outstanding:
Basic 25,555 25,915 25,601 25,943
Diluted 25,656 26,140 25,707 26,207
Other financial data
Operating cash flow $9,590 $15,923 $16,809 $33,917
Depreciation and amortization 5,628 5,998 11,440 12,250
C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION (CONT.)
(Dollars in thousands)
(Unaudited)
Selected Balance July 31, January 31,
Sheet data 2003 2003
---- ----
Total cash $ 6,769 $ 12,966
Total assets 364,319 382,156
Total debt 22,500 39,919
Total equity 260,685 258,274