Exide Technologies New has a market cap of $734.6 million; its shares were traded at around $9.96 with a P/E ratio of 10.52 and P/S ratio of 0.27. Hedge Fund Gurus that owns XIDE: Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns XIDE: Chuck Royce of Royce& Associates.
This is the annual revenues and earnings per share of XIDE over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of XIDE.
Highlight of Business Operations:Lead and other Raw Materials. Lead represents approximately 50.0% of the Companys cost of goods sold. The market price of lead fluctuates. Generally, when lead prices decrease, customers may seek disproportionate price reductions from the Company, and when lead prices increase, customers may resist price increases. Both of these situations may cause customer demand for the Companys products to be reduced and the Companys net sales and gross margins to decline. The average price of lead as quoted on the London Metals Exchange (LME) has increased 11.1% from $1,911 per metric ton for the nine months ended December 31, 2009 to $2,123 per metric ton for the nine months ended December 31, 2010. The LME lead price has increased from $2,119 per metric ton at March 31, 2010 to $2,585 per metric ton at December 31, 2010. At January 28, 2011, the quoted price on the LME was $2,544 per metric ton. To the extent that lead prices continue to be volatile and the Company is unable to maintain existing pricing or pass higher material costs resulting from this volatility to its customers, its financial performance will be adversely impacted.
Exchange Rates. The Company is exposed to foreign currency risk in most European countries, principally from fluctuations in the Euro. For the first nine months of fiscal 2011, the exchange rate of the Euro to the U.S. Dollar has decreased 8.1% on average to $1.31 compared to $1.42 for the first nine months of fiscal 2010. At December 31, 2010, the exchange rate of the Euro to the U.S., Dollar was $1.34 or 1.0% lower as compared to $1.35 at March 31, 2010. Fluctuations in foreign currencies impacted the Companys results for the periods presented herein. For the first nine months ended December 31, 2010, approximately 56.9% of the Companys net sales were generated in Europe and ROW. Further, approximately 65.8% of the Companys aggregate accounts receivable and inventory as of December 31, 2010 were held by its European subsidiaries.
Net sales were $800.3 million for the third quarter of fiscal 2011 versus $746.5 million in the third quarter of fiscal 2010. Foreign currency translation (primarily the Euro against the U.S. dollar) unfavorably impacted net sales in the third quarter of fiscal 2011 by approximately $25.8 million. Excluding the foreign currency translation impact, net sales increased by approximately $79.6 million, or 10.7% primarily the result of $28.4 million in lead related price increases combined with higher unit sales.
Gross profit was $165.6 million in the third quarter of fiscal 2011 versus $158.2 million in the third quarter of fiscal 2010. Foreign currency translation unfavorably impacted gross profit in the third quarter of fiscal 2011 by $4.0 million. Excluding the impact of foreign currency translation, gross profit increased by $11.4 million due to higher unit sales. Gross margin of 20.7% in the third quarter of fiscal 2011 declined 0.5% versus the third quarter of fiscal 2010 due to increased lead costs.
The effective tax rate for the third quarter of fiscal 2011 was primarily affected by the impact of various items related to uncertain tax positions of $1.8 million and changes in jurisdictional tax laws of ($3.7) million. In fiscal 2010, the effective tax rate was impacted by the recognition of $2.8 million in valuation allowances on current period tax benefits generated primarily in United Kingdom, France, Spain, and Italy.
Net sales were $2.11 billion in the first nine months of fiscal 2011 versus $1.97 billion in the first nine months of fiscal 2010. Foreign currency translation unfavorably impacted net sales in the first nine months of fiscal 2011 by approximately $58.7 million. Excluding the foreign currency translation impact, net sales increased by approximately $200.6 million, or 10.2% primarily as a result of $130.9 million in lead related price increases as well as higher unit sales in many of the Companys markets.
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