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EnerSys Reports Operating Results (10-Q)

February 09, 2011 | About:
10qk

10qk

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EnerSys (ENS) filed Quarterly Report for the period ended 2011-01-02.

Enersys Inc. has a market cap of $1.65 billion; its shares were traded at around $34.92 with a P/E ratio of 17.2 and P/S ratio of 1. Enersys Inc. had an annual average earning growth of 15.3% over the past 5 years.Mutual Fund and Other Gurus that owns ENS: David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Our selling prices fluctuated during the last several years to offset the volatile cost of commodities. Beginning in the third quarter of fiscal 2009, as a result of reductions in the cost of lead, our average selling prices began to decline on a sequential quarterly basis. As the cycle of lead costs turned upward in the early part of fiscal 2010, we began to increase average selling prices to help offset the higher costs. During the nine months of fiscal 2011, our selling prices increased to reflect the rising commodity prices. Selling price increases offset approximately $57 million of the increased lead cost of $107 million in the nine months of fiscal 2011. Approximately 35% to 40% of our revenue is currently subject to agreements that adjust pricing to a market-based index for lead.

Our Europe segments net sales increased $26.7 million or 12.8% in the third quarter of fiscal 2011, as compared to the third quarter of fiscal 2010, primarily due to an increase in organic volume of 14%. Price increases and acquisitions contributed approximately 5% and 2%, respectively, to the improvement, which was partially offset by an 8% decrease due to weaker foreign currencies. Our Europe segments revenue increased $98.6 million or 18.5% in the nine months of fiscal 2011, as compared to the nine months of fiscal 2010, primarily due to an increase in organic volume which contributed approximately a 16% increase, complemented by increases of approximately 7% and 4% due to price and acquisitions, respectively, partially offset by an 8% decrease from weaker foreign currencies.

Our Americas segments revenue increased $45.6 million or 25.4% in the third quarter of fiscal 2011, as compared to the third quarter of fiscal 2010, primarily due to higher organic volume, which contributed approximately an 18% increase. Pricing, acquisitions and foreign currency changes contributed approximately 1%, 5% and 1%, respectively, to the improvement. Our Americas segments revenue increased $157.5 million or 31.9% in the nine months of fiscal 2011, as compared to the nine months of fiscal 2010, primarily due to higher organic volume which contributed approximately a 21% increase and pricing, acquisitions and foreign currency changes contributed approximately 4%, 6% and 1%, respectively.

Our Asia segments revenue increased $15.0 million or 46.2% in the third quarter of fiscal 2011, as compared to the third quarter of fiscal 2010, primarily due to higher organic volume of 42% and 7% due to foreign currency changes, partially offset by lower pricing of 3%. Our Asia segments revenue increased $31.5 million or 31.1% in the nine months of fiscal 2011, as compared to the nine months of fiscal 2010, primarily due to higher organic volume which contributed approximately a 27% increase and 5% due to foreign currency changes, partially offset by lower pricing of 1%. The pricing environment in Asia continues to be challenging.

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