ENS - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Q3 2018 EnerSys Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, today's conference is being recorded. I would now like to turn this conference call to Mr. CEO. and President Shaffer, David

You may sir. begin,

David M. Shaffer

Thank us. Kevin. Good morning joining for you thank and you,

get this fly, we Accounting Before started Officer, our Kerry I Chief Kane, would say Eagles, morning, fly. I promised

Chief we all with this posted morning Schmidtlein, evening, So, on referencing Financial website during me Last slides the Officer. our morning. be is this Mike our will on call we the

Investors a may webcast to get statements. didn't ask chance of the want tab go you this to you to at If information, cover website the to to in going forward-looking www.enersys.com. section our see information I'm regarding Schmidtlein Mike

Michael J. Schmidtlein

you, Thank good everyone. to Dave, and morning

subject we this be based current are to a certain forward-looking changes are management's will in circumstances. uncertainties call reminder, and that statements on on As and presenting expectations

differ Our from actual reasons. statements the of number for may materially results a forward-looking

based views operating of Our management's statements. such performance forward-looking are regarding and the applicable and on statements only as future of events are current dates and

factors, ended of Analysis of and our statements of X, which Exchange for report and Discussion list on estimates, our future Management's Securities in filed included Condition U.S. XXXX, quarter in Form a and forward-looking the forth earnings our which the Operations Financial Results see For December quarterly including XX, Item results, affect set was XX-Q could with Commission.

In addition, we non-GAAP be presenting measures. will also financial certain

it see you, Form the included www.enersys.com. the company's February GAAP back return the comparable please is XXXX, dated of information, financial press Dave. which website between on explanation differences and an to at which our X, includes release I'll For non-GAAP our X-K, our information

David M. Shaffer

of increased increases commodity our quarter, organic well quarter XX% million will our last legislation were per million which positive recovery. adjusting $X.XX recent continued quarterly from $XX gross share, of were unrelated profit I Sales $X.XX range increased an In comments. will Mike. taxes impacts in begin factoring Thanks, guidance $XX our in $X.XX address growth We after year-over-year, this the cost slide X%. share. Mike earnings creating Simultaneously, X. which including per results over above to his to on despite headwind price of there selling per year-over-year pleased year announce to share, third on were

material price from fiscal on with was consistent recovery Our commodity rising year raw quarters costs cost approximately this prior inflation. total XX% at

able yet increases have We to so recover been year. cost not far commodity fully this

increased through offset Increased meantime, power to we In costs However, price opportunistic confident helped to a all costs costs increases Americas reductions. in stabilize. coming continue and and cost offset remain fully the in organic from gains these strong motive power reserve in commodity higher of commodity commodity we the and mix our volume to opportunities identify Asia. the regions has prices ability recover once aggressively with increased

spending. changes, favorable batteries impact within to business robust in once we to in for supply product [uninterruptible] continue for deployment addition, new and We review Please the X. able to reserve development the telecom power the XG The is I turn for coming with in to or were operators are to initiatives. experience trends our coupled believe networks telecom Core appear large we XX% prices organic organic (sic) the infrastructure and margin growth, recent continues anticipation operating Recent the should East believe in year power In anticipate moving having a increased quarter. in upgrading be UPS business be region with reserve Middle additional Africa telecom but increased uninterrupted to the telecommunications. exceeded announced We driven repeat continued we and briefly in growth. fiscal good their cost per telecom price by the order want that contributing, legislative increased year-over-year years. quarter third net slide experiencing of and offset the spending installation again orders on sales In orders. which Lean, quarter, growth. global in including savings were power mainly our Americas, businesses. the Digital enclosures were do infrastructure lead Motive neutrality, the October in East pound, earnings Middle the are third volume a anticipate and increases power near project Europe, strong during sales positive for motive future. We the steady due will quarter selling UPS In experienced that with third quarter. sales Africa's XXXX. fourth strong power toward not increases Price in $X.XX EMEA, to

good volume sales slightly volume last Asia's spending year-to-date experienced been than slightly the year, power Chinese business This has third sales telecom down year. versus year. quarter, in While reserve last is lower

able has to been steady in remain EnerSys However, gains market due to share.

enhance earnings two XX% power profitability, and Asia volume, intercompany we're increase in of made power versus faces but losses the progress is the of envisioned the Day. growth changes. pace outlined regional fiscal-year business motive been remain margin. motive XXXX, is still Positive reduced has getting commodity double-digits consistent pressures, XXXX India which to to and at months in operating committed the making due our volume. Asian export Asia volume manufacturing to with first nine we Investor To up We

First, footprint repurposing in are have manufacturing and begun exporting product. our we India,

joint acquisition We continue to look venture for in opportunities India. and

production order China. manufacturing defense manufacturing rebalance capacity and to increase in satellites, in we segments, continues the world missile demand to of growing Second, and aerospace land Aerospace medical, rest and our the to business turn is meet flat. to slide X. global Please munitions planning expansion our surge in in all defense the order footprint U.S., In vehicles, this demand. will in export We're systems.

call, progress growth lithium-ion around with on has pertaining market higher next-generation our our of want to products garnering lithium-ion batteries. initiatives, modular which We investor the assumptions, been made power February. at These Day first, I quarterly the to continued to review introduced modular investors trucks. Similar strategic our last to the universally key slide forklift including, last and development made for Please metrics electric some initiatives with which products we power provide TPPL in Investor motive to cost turn X. maintenance-free are the of on Considerable share progress chemistries. designed new are our form and of batteries, motive we've

As accelerated. this been development previously mentioned, has product

of Class our modular electric are on development. and lithium-ion We and have motive excited met fork our II batteries these new new into about III offerings. some influential specific based application requests we're discussions, trucks. I, customers pack These with many product power the power of our And motive for lithium-ion discussed their customers incorporating

products accelerate We are to forklift XXXX the combustion excited products new of to internal of currently – launch conversion will and on are products schedule electric. these fall in these trucks that these about the

the batteries Following power lithium-ion and the product markets. high-quality, we high-performance for launch, will the leader chargers motive be in

improving is by lithium initiative premium product next chargers mix TPPL, our management more Second, systems margins batteries. the and by selling modular increasing battery IRONCLAD,

and recent to datacenters market computing of market One for premium datacenters sales as has relates expansion premium a to to has contributors our products potential privacy enormous in at It due our the laws. into product products datacenters, of and year new benefit. the to solution share power as DataSafe taken the UPS edge We UPS the of percentage believe in applications to for battery traffic We requirements. co-location. the over cloud TPPL these for for will increase and This in introduced hardware our the qualified more TPPL Internet our growth data UPS and increase a of UPS for a new new well specified system be applications several TPPL product gain products total requirements.

a over-the-road TPPL and automotive technology. market in with our share retail Our transportation third initiative sector, is capturing specifically premium higher trucking the

fiscal year believe transportation for capacity global opportunity year Lead address should to Plate growth experience business XXXX setting automated business annual is market which sales, new markets the the sales growth this high-speed double-digit To and attractive million enjoying growth. over a better in TPPL, future (sic) [XXXX], will or second expand the of we growth. again serve. install we meet growing Our stage approaching this and will similar fiscal XXXX, the manufacturing $XXX our past In we Thin during Pure line opportunities half

to product being in best player we market. Our this a in is be the envision significantly the industry and larger deemed TPPL

a trucking companies As that nearly towards industry. defense XX the on The in initiative side the I our ordered is shifted for has non-flooded batteries serve market industry reported note, to Tuesday week, the This long-haul growth. of expands increased sales tactical Journal TPPL Street and Wall or will today led most vehicles. the in has sales and final The markets trucks growth maintenance-free more and we aerospace defense share expansion of mention this years.

defense product strategic important technologies could several the have of medical A&D that EnerSys and offerings made we an fiscal Medical approach our lithium made we expanded significantly addition, In over This supplier sales in years OEMs. XX%. and six and our growth past to estimate lithium acquisitions year, battery

continues fiscal additional across net Application and reported EOS track process initiatives and and due $XX directly on Process Operating achieve estimate widen million evidenced and of improvement the $X on savings manufacturing our in operations Our increased savings in year, also This is cost being $XX discrete operational continuous identified improvement XXXX. costs. our improvement ideas. fiscal million accelerating. are events or are focus to stream savings administration. approximately EOS we We EnerSys million to we System another to of increase surpassing are in improvement in year value and the savings

sourcing For increased in example, this year. $XX harmonization and competitive materials million will more key of yield efforts savings than

cost opportunities On materials identifying remain with manufacturing in cost the process. increased in significant indirect and overhead reduce and more $X efficiencies energy overhead expect on reductions to focused approximately will our side, we reductions through million and

a continue remain despite fourth ongoing headwinds fifth our cost our concepts ways provide and results quarter, and expect quarter to we excited EnerSys. very to And facilities. commodity Lean our introduce improve the to product delivered Mike on to guidance. our and information ask offerings I'll we we'll of and strong In manufacturing future to about During I further summary, sixth now, processes. identify the

Michael J. Schmidtlein

Dave. Thanks,

you along For following on X. starting those webcast, slide our I'm with of

XX% at On quarter the quarter basis, in a On to in increase Our in a X% quarter reserve positive net volume. XX% a product was up each. Europe's $XXX Americas basis, for to up power while and Please sales were a The a from to third and was million, power while the volume now to motive benefit. million, sales $XX price, in currency In and over in reserve driven and quarterly net X% net power X% X% region X% increase up volume, up a to line and up Europe a the year-over-year in generated power to sequential XX% while from increase increase and X% Americas of million currency X%, refer On increased by to volume a increase, volume Asia power a was increased increase. $XXX XX% X% were X% compared the Motive in XX% million XX% increase increased third pricing net up our currency. an increase slide up $XXX volume both X% prior and had third basis, X% sales Asia pricing power had a year million up X% regional a a XX% up Americas sales On in net were The Asia, in was million. price Europe increase increases $XXX X%. X% the XX%, while increase and a XX% XX%, fiscal $XXX sales increase were basis, in currency. X. line second pricing compared volume X% X% while from XX%. motive year. Reserve pricing. third a X% was quarter up XXXX, a product enjoyed and to prior to and quarter increased was due currency X% price foreign

consolidated adjusted few a our earnings comments about Now, performance.

quarter comments highlighted measures basis, quarter dated highlighted items. company's we know, company's excluding items. concerning my February details $X reflects operating with million Form million X. consolidated a million earnings $XX costs. of dollars the per you sequential due margin operating performance, following items. offset excluding our these higher utilized exclude earnings items, in later up concerning year-over-year concerning XXX slide impact diluted certain earnings now and were volume. adjusted points basis, quarter expenses, third my Accordingly, of comments operating analyzing operating to to year On our earnings to when third at third the a $XX turn higher sales were highlighted the our dilutive approximately XX.X% to our prior from and down non-GAAP Operating in million share $X XX.X% operating Please X-K, volume year. As higher in release on basis prior rising operating increase the the refer for earnings specifically press compared for XXXX, to by increased The On commodity in which on commodity costs. pricing, highlighted X, the in Please margins includes all

Act, I We costs expect recorded net charges of ERP are fiscal on expenses which shortly. well comparable $X.X related full-year to from about million Excluded talk related $XX operating implementation sub-XX% the operating net restructuring of and be in the charges Tax to to expenses will million basis primarily a as EMEA XXXX GAAP as recent range.

our XXX of quarter charges, last was lead record in points earnings the million quarter higher sequential quarter quarter down last a basis, Europe's the OE operating from and quarters. commodity and the XX.X% XXX Americas was down Americas than year's achieved [EMEA's] volume basis (sic) offset On from were which million points business segment impact points to million increased costs. declined EMEA. prior X.X% from of in earnings quarter income year. percentage business dollars Asia both X.X% in operating basis from an of of and prior X.X%. third pricing $X a second our XX.X%, from year only to approximately year dollars basis operating margin the for costs. $X.X posted partially in last quarter's earnings this the percentage XX.X% third was the those the below sequential Operating Higher primarily the the down prior the The XX%, in profit and third last Americas due higher decreased quarter XX also XX.X% OE higher third Excluding $X but year quarter's year from of last X.X%.

Asia's were slide to approximately OE and move prior million XX. sequential $X down year Please dollars both for quarters. the

reflected As of an million consolidated was on earnings the X% in year. adjusted comparison third prior previously slide quarter of increase to X, operating $XX our

higher or million of savings million $X declined pricing volume, net consolidated sales. a but adjusted and commodity the to increased $X $XX.X rate reflects offset Our higher from million, earnings increase XXX X% cost lower X.X% and points of in year basis The $XX prior costs. million tax by

the be lower rate tax net benefit income Our rate for legislation. of third item. to adjusted the lower tax XX% prior $X.XX I approximately effective third related outstanding. XX%. not items prior shares next quarter to rate rate expect quarter quarter most increased was reduction these EPS tax prior-year XX%. impacted to EPS and by recent the rate lower the was This approximately a higher on with the quarter's of $X.XX of X% effective Discrete than of than of variations earnings caused tax XX% year's and of

weightage any fiscal XXXX shares approximately benefit buyback of no share potential to fourth of outstanding our of XX.X expect activity. with million average have We QX quarter

have As a directors the in of not to November. XX by turn Please and our $XXX million XX. now reminder, we authorized exercised slides board

year-to-date usual, results. information third on on turn year-to-date to Please reference pages don't XX. your pages. intend As similar and of cover to provided we basis to for have These slide are a the prior I our two that now quarter

our financial and position Now, some brief comments about results. flow cash

sheet balance Our strong. very remains

million credit three have December We the operations world. million from short-term XXXX, fiscal our We as over XX, XXXX. quarters generated lines around in hand of on undrawn first cash in from and million $XXX investments $XXX in with cash $XXX our of

above in Please $XX ratio X.X just in $XX million is turn leverage XXXX the were of three Our expenditures XXXX. first Capital times. XX. quarters compared credit to now to fiscal agreement million fiscal slide

XX% million XX% to our the expected a had Act of cash impact well on be provides in $XX million and next in tax slide periods The charge we table as Tax it as current future and effective with new be income impacts. net on the details expect rate year XX to this our approximately While additional $XX favorable negative years. year's future to quarter,

any We might this but we likely as be our to have made determination of repatriate million it $XXX million. final will at cash time year, in next not much and fiscal how between $XXX

rate for approximately on earnings and diluted We XX% in We charge higher nearly again generate of share net our We in in and in anticipate acquisition with an adjusted QX. expect $X.XX in XXXX, between basis the increase $X.XX recovered activities. fiscal year-over-year our per balance programs incurred million recovered quarter we XX%. which cost pricing In quarter fourth to share the that of excludes in per net of profit fourth volume. commodity $XX $X.XX conclusion, gross a our restructuring to nearly be higher expected

the Now, turn Dave. let me call back to

David M. Shaffer

we questions. any Kevin, for line will Mike. Thanks, now open the

Operator

Oppenheimer. Our Kaye first Noah question comes from with

Noah Kaye

Thanks Good very morning, could start. I Dave, much. maybe gentlemen.

you commented footprint reconfiguring China supply your of for should markets? the in and both really that How context manufactured India. What these in on maybe be Could on chain? bit? to Asia going manufacturing decisions are little which global think a we products elaborate You about maybe

David M. Shaffer

question. Good Okay.

India take separately. China Let's and

real pretty open market telecom think compete to frustration and the I our on It's been our with ability of calls challenge. there. domestically India about been all a our we've

in And found motive export an motive growth the factory of region. to Asia a so, because we opportunity use an setting growth support and power in the there power

motive China. going So, real in power in we what's a factory they're big but have China, on do busy with

in said we It's there. rates over booming motive growth in think China. really double-digit I

advantage Southeast that Asia, in And fashion. and Asia, the the opportunity it frees leaner or to up of a Australia it an operation do take maybe Indian so, for of rest to creates

it in We since like China a with for the telcos customer, story. that spending but it became Tower spigot factory one similar – and telecom just their we do concentrated business And and as went on off for And have into the adjust And the so, footprint turned they And we've the share configured our at China accordingly. that. our business, China here and seen to changed actually China, has Tower. grown, in market. lot of States promising looks case and we that sized the

advantage to And we're to globally product datacenter portfolio seeing opportunities seeing rebalance so so, better growth mentioned, we're as our the we take factories. and just some of

I global FX rates, a our real rates, think lead different different one versus truly company, of that's strengths arbitrage been being always SMM LME.

guys big smart in a have deck actively the market the get going something just new so, the India opportunity We performance. And telco business figure going that. still sales in got had India. But we on got we an a to on to specifically and there know reshuffling we away the too are off We're Asia that We was plan in job to just to help shake how fantastic that XX% that's enjoy and It's and cities to to return sort just in But we frustrating. and to we've very which is going market and a do committed continue. be think know opportunity of some do. us, it get of a there. ignore to Asia's to get we in we M&A meantime, out and from we're said,

Noah Kaye

Classes the you we Because and perspective, guess people must of this bringing products? comment III year. lithium-ion pace this should the and guys margin color. is, forward talked introduced those with company because could market to far road question next about the margin – about this being the point? down that I you just agnostic return that you I at how chemistry pretty motive the point, you on to taking both Maybe at many profile I think from would through be for products Great. later the think for Thanks think capital ask relatively the about for on return how that and capital

David M. Shaffer

said lithium as And think leverage time for to that of program I chain business. there we were lithium-ion one we capitalization Well, Noah, that us and to such, Okay. get kicked low. in purchase is the or business Purcell the to is really off being calls two our the was going our pretty modular that and ago intention, cells supply that

relatively think So, start. good that's off get a can why we we to

outgrow Now, that if current might our Purcell grows, business we operations.

we think nail – in so it. the future, The XG the have around the here coming and thing scale about model of to other we is is with Purcell but sort have then is it,

So, that's the right now. focus

the hardly you lithium, capitalization color? a from So, any add Mike, to standpoint, modular modest want that's get we'll and noticed. fairly on

Michael J. Schmidtlein

million say year charged earnings going the to probably lithium with Yeah, regard that to not incurring be nearly have costs that are are pack those to the I costs will development, would of those now. $X for be develop capitalized. we We'll packs through

this when development, of battery about it's now. spending we're but we it on in cell made production, Digital self, we We're on we some So, pack cetera, are it development. et whether product our is investment doing Core, doing right the talk not new money that

David M. Shaffer

product I team. getting projections in extremely pressures, still that's and feedback the pace and pressures. one second at and customers the what, just doing the And team, that team that point introduce of Mike me tough very been run, the It's things some sailing the a just development, things been and, the described, we're on to that's right our year commodity more the a plug one lot the to And you the couldn't though be some a my these confident the headwinds into right of sees the of Investor of, doing proud. been year, little the the the as that commodity the it's transformation, CEO, to of as from P&L. we Even we're flying proud drag time, we my off an because long on of here Day put everyone new but these a given tried we're I same or important commodity difficult same amazingly fantastic because new we're give be know initiatives at then, strategy, maybe complained. time, couldn't And based That's headwinds. we've hasn't more with of been

Noah Kaye

thanks million for a to And to million if could in of think more here, Hey, $XXX just possible I of range I one you Mike, repatriation. commented David. sneak that, cash $XXX

question you just uses cash? lot how for in How of the guys makes pipeline that you a home clearly is see our to think market? the potential things does look M&A easier domestically, I So, do this

Michael J. Schmidtlein

M&A probably Yeah is $X worth billion of of believe and the we active. and that transactions succeeding with There's pipeline we that we reasonable find attractive chance both a have transaction.

and things X.X little And a then repurchased period. plenty over in there's million had shares the haven't probably as that well. major of We years. the frustrating So, last million going we've been our on at you dividend a that $XXX about cost that most transaction a it's in of of for recognize us stock timeframe, of really five and initiated

money But and and were when transactions we available, invest are for million, $XXX right M&A we wasn't those elsewhere. know, and selective M&A in ourselves would disciplined very deployed when you our activities. that Dave? as $XXX not the that inclination to initial look and be have So, to million

David M. Shaffer

And the scope now. of of money that's after that's ZIP or of the spot we've Street Yeah. is a we've deals about the right lot the private talked on been sweet sort after equity some the we've of code the changing for and a scale been me. and size on point, the size the going and And a the of unfortunately, just transactions

frankly, we've maybe valuations rich our seen couple we So, were paying people lost that And the a for too we've blood. just deals. think

We're I we've disciplined. we're that we're going of we're anybody I effort remain responsible try said a now, when a as they interpret lack for what right If And themselves, putting equity going said, do into as our think do we disciplined stay can. So, redoubled deals to think as not don't sake. going not it. for of going a is probably to avail in we're late trying not worked deal the returning this a these want We've along, anything, that said, there's lot to to harder to capital, all being to but we but deal. do deal's funds not don't efforts, of or us private but to the just cash and going then

Noah Kaye

Great. questions. taking the Great. Thanks for

David M. Shaffer

Thank Noah. you, Yeah.

Operator

next from & question Our Company. with Sidoti comes John Franzreb

John E. Franzreb

morning, Good guys.

David M. Shaffer

John. Hey,

John E. Franzreb

heard prepared historically will the say you the is hear of Going something telecom that probably quarter you saw correctly, strength that the – about fourth not one back quarter to your business because I quarter. the I that in felt third your think Did repeat of quarter your remarks, the in I I business? kind for fourth strongest

David M. Shaffer

We Yeah. in had telco in a Bluebird EMEA area. the in QX

a that You lumpy. is is the business in it a repeat rollercoaster just expect account telecom and know that to bit we but that's a It's continue little big don't QX, Bluebird going to into year. next

have standpoint favorable, said, a QX less But organics are volume we're comps for the year. and in the so and favorable from a the last probably now datacenters, a it's good in a probably growth for comps lot in pretty a A&D happy QX energy lot U.S., for activity especially the were So, really of that little just the or whether transportation had or volume we QX telecom volume the just organic exciting half storage with – arena. right there's we second net-net

we we set of the quarter. – make in – you hear we expectations fourth So sure right level did just had right, wanted that the but us yeah, but, to

QX a EMEA. account nice a in on telco did So, have we we but pickup for did,

John E. Franzreb

you're about you're of they're or little and rollout spending just of similarly, And bit talk XG what's spending said seeing ahead XXXX? pulling that hearing XXXX spending you it. on, if a Can the related you a on telecommunication Got infrastructure any to how potential they're rollout. forward potential XG

David M. Shaffer

Yeah.

what's be you remember will have there of backbone in all we on that today. already have the network out to So, end, built the XG remember, to the

based data on a whether what happens this network, company going wireless the whether a all company to fiber with backbone. new enter network, telco a XG, cable hybrid So, be will that's in with it's fiber largely coaxial it's a

we – in So the I ruling the dynamics net neutrality the remarks, telco really for some really, has as of U.S. and prepared said the there in customers buying and changed think the

sort so, renewed investment level going demand. are do say And what an infrastructure lot going is they they activity for be a of to we to that preparation and I'm increase in in a data see sure of that

legislation, it's in whether we're of of it's central our nationalization the traditional of batteries, whether of batteries, the some out whatever And or super some terms the very our the the enclosures is fronts seeing then, we're then network Plate U.S. whether cell in our sweet there especially. Thin think of prepared XG. excited with just out Joern's about Purcell one fastest smaller about on gets again, existing flooded we're So, feel Pure stuff it some our cooking what SBS business, Lead discussions of excited got of spot and office it's we the all the whether side about because and on what in we it's well stuff,

John E. Franzreb

about than EMEA One, here. you your Mike the guess lead, overseas most in so this one in ago. questions and or Americas of you to spiked weeks the do pricing a there's can here better just When of Americas? presented two slides, X% think P&L? I kind the price when the And on that I was you two, can And, one, and feel couple it. it Asia Got realize $X.XX increases you Dave, X%. and region was Okay. on by that or noticed

Michael J. Schmidtlein

John. Okay,

in EMEA. same not a right the in able actually delayed. the probably quicker The that you're based buyers the or place albeit they pass-through Americas. which bit patterns, have give did better They're quarter pricing of, mind up our year-over-year the deferring Americas this uses as mechanisms, the the faster a improvement EMEA Keep their of little traction, in consumers near-term them products it. the have ability on pick do kind to to So how than Americas, order of job to

recovery better, yesterday. bit better. it getting better you're stabilize the XX% see you And pricing long-term, difficult. up playing we But, like well to does lead long-term is an our lead and that's Americas been a up a decline, where got pass-throughs, having see in well pricing the what us, cost and ultimately where typically up checked obviously, pick guys it did lead faster sub-$X.XX see while aware. as in that, do $X.XX Americas probably those Asia you the in catch as So, slope with little down we've today. into but business, little the you're I ever-increasing the with rising and will If job Americas would we Europe lead the haven't does makes think that a than see if for on but we short-term, catch even and or they when

quarter, pressure But So, you terms if $X.XX lead were of to for scenario the your would then calendar first we raise well. margin. likely this premise on this basis also quarter fiscal for that see incurred us in range prices of in in remainder an as fourth would beyond most

David M. Shaffer

up. responding. we bit And pricing think when pricing obviously The because my looking a we And manage to can direction. the I that to and a just we little and region doing stated is lead what It's stability just is the other have this our the market of with really, down, a year But a everything of to business said from degree breather. Mike But coming right. is stability it. of we is assured choppy of as Mike the we're reduction nature for until But standpoint. so is prepared It's it it's key. the that and cost have little a be works going goes and and we're to then, deal pass-throughs. region remarks, in just be is Yeah. demonstrated even what we've far

say this the it's And wrong, is haul, difficult to long which is right and but assess which you over confident. so, am when I

One has of gone story. up. the things is that that reasons picked one a up lead demand not It's of really we've the

a business, part lead consumption type in or Europe, ratio you the market bumps couple that's And very driven percent, rates. like X, think industrial amount by just batteries. a car X And lead that maybe know, of U.S. low-single-digit business As biggest is a consumed growth the starting almost versus lead-acid Western along big lead-acid batteries. to that batteries. starter are by the car of of That's all of the I batteries

a coming then, of some discussion and commodities. So, the mining at it's mines some activity and led that's to a a are we noise are that picking up about been And the not really do increase expect of lot see supply speculation. of number time. side, we It's that years. that in it. there has And out some intelligence goes I the we story lot think mine the of in driving demand It's on money

take recover I think stability. that's need to some to demonstrated largely off, our pressure is the what And we've going but ability we is what of think we So, pricing.

of have confident. the lot seeing is December and economic We're market quarter then, remember And is other some going activity. picking was of place WITS thing, was very it data month for Mike, the lead think lead matches trucks in best economic It which is a always of truck the activity the ever the record. was in good on forklift extraordinary high lot for activity is I there's electric trucks. markets. reason a and to be because expectations seeing we're Business region, up, to is a that The is still and, sales, we're we new – that. maturity transportation, forklift overall, this electric there's

out may times remember year. I be have truck think are is weeks. lead a we one now thing probably times half truck are to there's Right lead XX

power that's and favorable has bit But there very are motive for a little been So, a when people book. because optimistic. order of again, again phasing is the most timing a I as high, to think Supply or our economic constrained the looks hit activity to going business. our lead most is

John E. Franzreb

coming it. news That's Thanks in new that coming for about color, a Appreciate years. Dave. welcome supply online

David M. Shaffer

Okay.

Operator

question next with Our comes from Brian Blair. Drab William

Brian P. Drab

give Hey, mentioned numbers? and just my the run Thanks data, taking can good WITS through Americas, those Dave, EMEA, you us for morning. just Europe questions. you

David M. Shaffer

The for let small me. print the I'll is read too – Mike font it.

it. Mike do I'll let So,

Michael J. Schmidtlein

I usually through all-time that, I an Brian, will December a right, basis that go record. XX,XXX All on before I do month the make was, I trailing stop units is point of think, three-month a activity, to the global but

truck three-month the globally, up the of Americas. like a back than going XX% XX% new versus at strong way and it remains of Asia long kind higher orders at leading rates Sort is Americas are XX%. average the and now year, at actually to prior the has of Asia, time had And Europe the trailing seems are growth Europe XX%, but

encouraging. is that So,

X ordered get our or lengthy – the weeks lead often later you be our are of know, these Now, the XX because compared and batteries to new time. for as to and ordered trucks trucks times delivered lead

would order for bode upcoming and future intake this for us sales. So, well is and encouraging

Brian P. Drab

Okay. Great. Mike. the too, And EMEA give

Michael J. Schmidtlein

average. just going this through, Right, so three-month the is

Brian P. Drab

Yeah.

Michael J. Schmidtlein

Europe Americas year-over-year. The Asia with XX%. XX% me, a growth Europe Total Africa XX% total of excuse worldwide total is – for and is XX% XX%

Brian P. Drab

Yeah. data X% Got know talk XX% I just outstanding if differentiate you'd I X% little then, spreadsheet. sorry, in Asia were in Bluebird quarter Europe results in we either be Americas the and across a Europe, this right or bit now? about mentioned reserve it. of Thanks. in is volume growth – to could at could strong Can my that the just really Europe rates at these WITS growth you and strength fill up regions, into between down in X% guess expect follow-on Americas Americas, looking Asia. the with sequentially explains what's and I or segment you and in a the order big didn't And question Thanks. then, in EMEA and guess we're the actually you lot fourth just that this motive types given the Asia it? driving And quarter the of seeing fourth

Michael J. Schmidtlein

volumes. about come levels sort optimistic of they're really can't tell Bluebirds, some book, I activity quarters and go the That's the you in up, of telco, enclosure order based activity telecom the the when order great I past. I'd in is on say they would they especially to to the The beast, say nature and business the hit. activity, the general, we're going just our but the U.S. markedly pretty are seeing relative and

right the smooth would general I So, the say never order be one business it's the solid off, now. one yeah, pretty in on, going activity, but to order quarter book, quarter looks

Brian P. Drab

Okay.

what typical the in the something that? fourth So, any fourth Is third about from You're to to reason always from different seasonality quarter. there expect quarter? up

Michael J. Schmidtlein

the for that compared third a it X% the in this think comparable of base probably have fact our traditional I historical the organically fourth but won't as stronger for year. because as had third for with us of quarter the they fourth year rates you'll quarter prior be see Well, start to to quarter, of a the growth quarter strong

David M. Shaffer

and in fairly to Middle be QX flat. to a I say region And continues not enjoyed of a the just It's to shipping reiterate, general had in East few still sometimes seen return QX. this that our EMEA versus would And been we would not days reserve say ago. factors years in most exciting outside that have in one Bluebird, we investment I the power

is Morocco, were or that but haven't that we orders of is there a other just fighting they've everybody, – those Tunisia, oil-driven I remember So, seen remind help. EMEA, a certainly have – economies the we that Egypt to ago, like hard. sell Huawei places of the few like the Alcatel, Nokia, all enjoying We really lot thing that, political about regions. unrest And been pretty and in out Ericsson, world accounts would they over then, guys, to the and ZTE big those years

as share Huawei hardest we and in to European So, ZTE, that they lose P&L. feel our

but us. OEMs area isn't reserve the focus telco do to a we've I been better So, keen the And just that's certain parts, But lot – have in one job the activity Chinese of see to with had. – in just a of that's of so of Europe want for them. sector and part frustration don't great we we a

Brian P. Drab

the days in been you has an it issue, mentioned issue Dave, Got it. the past.

are the for think about specifically any to issues there fourth days quarter? So,

David M. Shaffer

Mike to just chance he was I'm saying calendar, that... give say trying because Gregorian to a

Michael J. Schmidtlein

third quarter had that. year's X more say this Actually, did And had this day quarter, we to than fourth XX. last shipping a inverse. us the versus love I XX has yeah, year third days ago. you in year's quarter the We for in

comparison. of there, the is terms that's a difference that So, in inverse year-over-year X-day net kind so of

David M. Shaffer

Okay.

Brian P. Drab

you. the the be Analyst of this time the is major the seems win, that – market truck of opportunities in At give front seems just you in the years. one announced of Dave, – two your it. an maybe, then, have And one the Got Thank you? next question great there, here to like last most one just promising second initiative over Day, you I of just you it the we update think still of few had can the

David M. Shaffer

Yeah, message, going what Plate broad the market finding sector deliver automotive the the saying now, what and Pure ignition now. automotive Lead I and but in enjoying we mean that it's is a market is, business niche that our a that deep beyond – that's in want to do exciting, see I within Thin starting, lighting that is also and and we're there really truck it's it not not seeing niche we're value don't I'm automotive. technology. of

as as well. as of the in automotive premium engine just lot so, been truck interest nice a much the growth And seeing we're business for us, has a sector

to the side we to any entirely manage new ever position of something the and take is there focus in one we're there the for operates one we've us share to year. supply aren't supply that's manage one in later until on high the we've of of issues constraints really the factory. the and trying things and this key before. that. a think line a versus do different noted That's we have an I in in It's way huge pace areas anything done of speed We

initiatives that and meal again, going of that drive getting help bite And deeper one share. running up and automation a the for that's us secure monster little key is just market to and of is a So, us.

Brian P. Drab

Right.

David M. Shaffer

that's So, well. us for going exciting real and

Brian P. Drab

questions. taking my Great. Thanks thanks update for that and for

David M. Shaffer

you. Thank

Operator

questions for like I'd call to time. remarks. this at I showing further any David Shaffer turn am the back over closing to not

David M. Shaffer

All and care. right. if attend at XX:XX. at the Take there, time take a for call Well, our parade get to a Eagles' Bye-bye. the everyone I you taking on want to chance thank look to TV

Operator

and this Ladies gentlemen, does conclude presentation. today's

You a have day. wonderful may disconnect and now

EnerSys (ENS) 8 Feb 182018 Q3 Earnings call transcript