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
FIRST QUARTER FISCAL 2005
BLUE BELL, Pa., May 24, 2004 -- 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
financial results for its first quarter ended April 30, 2004. Net income for the
quarter was $2.0 million, or 8 cents per share, compared to $2.8 million or 11
cents per share in the prior year's first quarter. Net sales for the quarter
were $85.8 million, a 10.9% increase from the prior year's first quarter sales
of $77.4 million.
"Sales in the first quarter of fiscal 2005 increased in all three of our
divisions over the prior year's first quarter," stated Wade H. Roberts, Jr.,
president and chief executive officer of the company. "However, the improved
sales were offset by various factors during the quarter, including a more than
15 cents per pound increase in our cost of lead as well as expenses associated
with the start-up of manufacturing at our Reynosa, Mexico facility. We estimate
that the combination of these two factors negatively affected earnings per share
by over 15 cents."
During the quarter, C&D Technologies completed the integration of its Dynasty
and Powercom business units to form the new Standby Power Division. Therefore,
the financial discussion that follows reflects combined results for the two
former divisions for both fiscal 2004 and 2005. C&D Technologies' fiscal 2005
first quarter operating results from its reporting segments were as follows:
Standby Power - Sales increased 9.8% in the quarter to $60.9 million from $55.5
million in the prior year's first quarter. The increase was due primarily to
strong demand from UPS equipment OEMs (Original Equipment Manufacturers) and
improvement in the cable TV equipment market. Operating income for the segment
decreased 28.6%, to $5.4 million, from $7.5 million in the first quarter of
fiscal 2004, reflecting higher raw material costs, principally lead.
Power Electronics - Sales increased 23.6% during the quarter to $11.2 million
from $9.0 million in the prior year's first quarter. The revenue increase
reflected improved demand for DC to DC converters. Operating income in the first
quarter was $291,000, compared to an operating loss of $594,000 in the first
quarter of fiscal 2004.
-more-
Motive Power - Sales increased 6.7% in the first quarter to $13.7 million from
$12.9 million in the prior year's first quarter. Unfortunately, the division's
operating loss increased 19.4% to $1.8 million, from $1.5 million in last year's
first quarter, primarily reflecting higher raw material costs. Without the lead
cost increase, the current quarter loss would have been lower by more than $1.0
million.
In commenting on the outlook for the second quarter, Mr. Roberts indicated:
"While consolidated sales increased 10.9% over the prior year's first quarter
and our backlog increased modestly, for the second quarter of fiscal year 2005,
we expect operating results of $0.10 to $0.15 per share, including a portion of
the previously announced reorganization costs estimated to total $2.0 to 2.5
million for the fiscal year. These costs relate to severance, moving and rigging
for the relocation of select manufacturing to our Reynosa facility and will be
expensed as work progresses through the second and third quarters."
C&D Technologies will hold a conference call today at 11:00 AM Eastern Daylight
Time to discuss these results in detail. To participate, please call
706-679-4521 approximately five minutes before the conference call start time. A
replay of the conference call will be available at approximately 2:00 PM and
will remain available until midnight on June 7, 2004. Please call 800-642-1687
(706-645-9291 for international callers) and enter pin number 7572141 to access
the replay.
A simultaneous webcast of the conference call may be accessed at the investor
relations section of our website at www.cdtechno.com. To listen to the live
call, please go to the web site at least 15 minutes early to register, download
and install any necessary audio software. An archive of the conference call will
be available approximately two hours after the conference call ends and will
remain available on the company's website until May 24, 2005.
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, 2004), 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 2004 2003
Net sales $85,805 $77,368
Gross profit 16,541 16,992
Selling, general and
administrative expenses 10,034 9,170
Research and development
expenses 2,669 2,411
Operating income 3,838 5,411
Income before income taxes
and minority interest 2,991 4,695
Net income before minority
interest 1,884 2,958
Net income 2,004 2,822
Basic earnings per share 0.08 0.11
Diluted earnings per share 0.08 0.11
Weighted average shares
outstanding:
Basic 25,399 25,650
Diluted 25,585 25,760
Other financial data
Operating cash flow 2,628 9,325*
Depreciation and amortization 5,517 5,812
* Reclassified for comparative purposes.
C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION (CONT.)
(Dollars in thousands)
(Unaudited)
Selected Balance April 30, January 31,
Sheet data 2004 2004
---- ----
Total cash $ 10,597 $ 12,306
Total assets 384,463 385,950
Total debt 19,661 19,620
Total equity 269,657 269,533