1400 Union Meeting Road
Blue Bell, PA 19422
Phone: 215-619-2700
Shareholder Contacts:
Stephen E. Markert, Jr. of C&D: 215-619-7835
Joseph Crivelli of Gregory FCA, for C&D: 610-642-8253
C&D TECHNOLOGIES REPORTS EARNINGS FOR
THIRD QUARTER FY 2004
BLUE BELL, PA, November 20, 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 third quarter ending October 31, 2003 of $4,203,000 or 16
cents per share compared to $5,128,000 or 20 cents per share in the prior year's
third quarter. Net sales for the third quarter were $84,870,000 compared to the
prior year's third quarter of $87,637,000, but were up from net sales of
$81,364,000 (a 4% increase) in the second quarter of this year, with earnings
per share up over 10% from the second quarter's 14 cents per share.
"We achieved a modest improvement in the operating results of our Motive Power
and Power Electronics Divisions, and a double-digit operating income increase in
the Dynasty Division. All of which combined to offset continuing weakness in
most segments of the telecommunications market," stated Wade H. Roberts, Jr.,
president and chief executive officer of the company. "The Power Electronics
Division generated an operating profit for the first time in a year, while
Motive Power's operating loss declined almost 40% from the second quarter. We
anticipate, in the fourth quarter (traditionally our slowest), earnings per
share will be comparable to those of the third quarter," he said.
For the fiscal nine-month period ending October 31, 2003, net income decreased
24% to $10,605,000, or 41 cents per share, from $13,956,000, or 54 cents per
share for the first nine months of the prior year. Sales for the fiscal
nine-month period declined 5% to $243,602,000 from $255,991,000 in the prior
year's comparable period.
C&D Technologies' fiscal 2004 third quarter operating results from its reporting
segments were as follows:
Power Electronics - Sales decreased 23% in the quarter to $9,450,000 from
$12,265,000 in the prior year's third quarter. The revenue decrease was due
primarily to a decline in sales of DC to DC converters and custom power
supplies. Operating income for the segment increased to $401,000 from $181,000
in the third quarter of fiscal 2003.
Powercom - Sales fell 19% to $30,910,000, compared with $38,009,000 in last
year's third quarter primarily due to lower telecommunications sales. Operating
income in the quarter decreased 51% to $3,119,000 from $6,340,000 in the third
quarter of fiscal 2003.
Motive Power - Sales increased 10% in the third quarter to $15,345,000 from
$13,903,000 in the prior year's third quarter. The business had an operating
loss of $995,000 in the third quarter compared to an operating loss of
$1,058,000 in the prior year's comparable quarter and $1,649,000 in this year's
second quarter.
Dynasty - Sales increased 24% in the quarter to $29,165,000 from $23,460,000 in
the prior year's third quarter. This increase was primarily due to an increase
in uninterruptible power supply sales. Operating income for the segment
increased 19% to $4,676,000 from $3,929,000 in the third quarter of fiscal 2003.
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, or the quarterly reports filed on Form 10-Q thereafter), 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 Nine months ended
October 31, October 31,
Summary of earnings 2003 2002 2003 2002
------------------- ---- ---- ---- ----
Net sales $84,870 $87,637 $243,602 $255,991
Gross profit 19,656 20,808 55,726 59,656
Selling, general and
administrative expenses 10,097 8,955 29,791 26,808
Research and development
expenses 2,358 2,461 7,104 7,355
Operating income 7,201 9,392 18,831 25,493
Income before income taxes
and minority interest 6,582 8,160 16,882 22,145
Net income before minority
interest 4,147 5,207 10,636 14,018
Net income 4,203 5,128 10,605 13,956
Basic earnings per share 0.16 0.20 0.41 0.54
Diluted earnings per share 0.16 0.20 0.41 0.54
Weighted average shares
outstanding:
Basic 25,496 25,671 25,566 25,851
Diluted 25,757 25,799 25,724 26,070
Other financial data
Operating cash flow $16,363 $14,258 $33,172 $48,175
Depreciation and amortization 5,593 6,072 17,033 18,322
C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION (CONT.)
(Dollars in thousands)
(Unaudited)
Selected Balance October 31, January 31,
Sheet data 2003 2003
---- ----
Total cash $7,248 $ 12,966
Total assets 378,672 382,156
Total debt 20,000 39,919
Total equity 266,221 258,274