Exhibit 99.1
1400 Union Meeting Road
Blue Bell, PA 19422
Phone: 215-619-2700
Fax: 215-619-7841
Shareholder Contacts:
Stephen E. Markert, Jr. of C&D: 215-619-7835
Joseph Crivelli of Gregory FCA, for C&D: 610-642-8253
For Immediate Release
C&D Technologies Announces Preliminary Fourth Quarter Results
Blue Bell, PA--March 7, 2005--C&D Technologies (NYSE: CHP), a leading North
American producer and marketer of electrical power storage and conversion
products used in telecommunications and industrial applications, today announced
it expects to report revenues of approximately $122 million for the fourth
fiscal quarter ended January 31, 2005. The company further expects a net loss
per share for its fourth fiscal quarter in the range of $0.04 to $0.06 per
share, compared to the range for earnings per share of $0.08 to $0.12 previously
forecasted.
These results were primarily due to the following factors: lower-than-expected
profits in the company's Power Electronics Division, principally the recently
acquired CPS operation, where non-cash charges for in-process R&D and
amortization of intangibles contributed; the continued high cost of raw material
(primarily lead); and transition costs at the new Reynosa, Mexico plant. The
required annual assessment of goodwill is in process at this time and could
affect the final results in a non-cash fashion.
Wade H. Roberts, Jr., president and chief executive officer of the company,
said, "We are obviously very disappointed with the company's financial
performance in fiscal 2005. We encountered a number of challenges that pressured
earnings throughout the year, principally escalating raw material prices, the
cost of transitioning manufacturing of battery products from Huguenot, New York,
and Leola, Pennsylvania, to our Reynosa, Mexico facility, asset impairments, and
the costs to comply with Sarbanes-Oxley requirements. These issues negatively
affected 2005 pre-tax earnings performance by over $40 million."
In commenting on the outlook for the first quarter of fiscal 2006, Mr. Roberts
stated, "We anticipate earnings per share will be in the range of break-even to
plus or minus two cents, assuming the price of lead does not worsen."
As a result of the fourth quarter loss, the company breached its leverage ratio
covenant under its $200 million revolving credit facility. The company has
obtained a waiver and is renegotiating the credit facility to more accurately
reflect the company's leverage on a going-forward basis.
C&D Technologies will hold a conference call on Tuesday, March 8, 2005 at 9:00
AM Eastern Standard 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
12:00 PM and will remain available until midnight on March 22, 2005. Please call
800-642-1687 (706-645-9291 for international callers) and enter PIN number
4619632 to access the replay.
A simultaneous webcast of the conference call may be accessed at the investor
relations section of our website at http://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 March 22, 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, 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.
Section 404 of the Sarbanes-Oxley Act of 2002 requires management to perform an
evaluation of the internal control over financial reporting and have its
independent auditors attest to such evaluation. Along with other companies whose
fiscal year ends January 31, the company must implement these requirements for
the first time in connection with the preparation of the annual report for the
year ending January 31, 2005. The company has been actively preparing for the
implementation of this requirement by, among other things, establishing an
ongoing program to document, evaluate and test the systems and processes
necessary for compliance. If the company fails to complete and file its
evaluation on a timely basis and in a satisfactory manner, it may be subject to
additional scrutiny surrounding its internal control over financial reporting.