1400 Union Meeting Road
Blue Bell, PA 19422
Phone: 215-619-2700
Fax: 215-619-7841
Contacts:
Tom Lynn of C&D: 215-619-7848
Joseph Crivelli of Gregory FCA, for C&D: 610-642-8253
FOR IMMEDIATE RELEASE
C&D Technologies Announces Phase Two of
Revitalization Plan for Motive Power Products
BLUE BELL, PA, April 6, 2006 - C&D Technologies, Inc. (NYSE: CHP), today
announced the initiation of phase two of a revitalization plan for Motive Power
products.
"When I started at C&D Technologies nine months ago, we announced to the
marketplace that C&D was committed to the Motive Power Market and would be
moving forward with a revitalization plan for the business," said Dr. Jeffrey
Graves, CEO of C&D Technologies. "Over the last two quarters, C&D has
successfully passed the first milestones of this plan, with revenues
significantly increasing and channel partners and customers returning to our
business. We are now ready for the second phase of our plan."
Phase Two of our revitalization plan for Motive Power includes the following:
o Launching new products to open up over $150 million of unaddressed
markets:
o In May 2005, C&D launched an 'Easy Maintenance' battery, the
EM-LINE (TM), which was a first step in addressing a growing market
segment for lower maintenance products.
o In the fourth quarter of this year, C&D will take a major step
forward in the market by officially launching a new generation of
'sealed batteries' that will embody the leading technology in the
industry. Results of beta-tests of this product with customers in the
field have greatly exceeded our expectations, and we will be
investing over $1 million in our Leola, Pennsylvania battery plant
to bring this product to market.
o Expanding Distribution Centers:
o The establishment of our new Distribution Center in Hidalgo, Texas
in the fourth quarter of last year was well received by our customers,
leading to enhanced service and improved delivery times. Over the
next six months, we will be expanding the Hidalgo Distribution
Center to ensure 48-hour delivery on all of our key Motive products.
o In addition, C&D is opening a new Distribution Center in Leola, PA,
to provide this enhanced level of service to our customers in all
Northeastern locations. This Center will be fully operational by July
2006. Further locations will be considered as our business growth
continues to accelerate.
o Manufacturing Focus:
o Production of the flagship product, C-LINE (TM) CLASSIC will be
moved to C&D's most modern lead acid battery manufacturing plant
located in Reynosa, Mexico. This plant has 250,000 square feet of
production space available, and space to grow as we continue to
improve our position in the motive power market. Currently our
V-LINE (TM) and EM-LINE of Motive products are manufactured in this
plant, and we now have an experienced, well-trained and stable
workforce in place, armed with the most modern tools and methods
for driving continuous improvement throughout the operation.
o The manufacturing relocation will be largely completed by August 2006,
costing approximately $2,500,000, and resulting in savings of over
$3,500,000 on an annualized basis with the closure of C&D's Huguenot,
New York facility.
Dr. Graves continued, "The combination of these actions will enable significant
top line growth, while improving our cost structure for the business. We remain
excited about the future and believe more than ever that Motive Power will be a
strong business for C&D for years to come."
Forward-looking Statements:
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, 2005, or the quarterly and current reports filed on Form 10-Q and
Form 8-K thereafter), could cause the company's actual results to differ
materially from those expressed in any forward-looking statements made herein.
SOURCE: C&D Technologies, Inc.
# # #
C&D Technologies, Inc. provides solutions and services for the switchgear and
control (utility), motive (material handling), telecommunications, and
uninterruptible power supply (UPS) as well as emerging markets such as solar
power. C&D Technologies engineers, manufactures, sells and services fully
integrated reserve power systems for regulating and monitoring power flow and
providing backup power in the event of primary power loss until the primary
source can be restored. C&D Technologies' unique ability to offer complete
systems, designed and produced to high technical standards, sets it apart from
its competition. C&D Technologies is headquartered in Blue Bell, PA. For more
information about C&D Technologies, visit www.cdtechno.com.
C&D(R) is a registered trademark of C&D Technologies, Inc.