Exide Technologies New Reports Operating Results (10-Q)

Exide Technologies New (XIDE, Financial) filed Quarterly Report for the period ended 2009-12-31.

Exide Technologies New has a market cap of $598.7 million; its shares were traded at around $7.92 with a P/E ratio of 396 and P/S ratio of 0.2. XIDE is in the portfolios of Bill Miller of Legg Mason Value Trust, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Chuck Royce of ROYCE & ASSOCIATES.

Highlight of Business Operations:

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 2010, the exchange rate of the Euro to the U.S. Dollar has decreased 2.6% on average to $1.42 compared to $1.46 for the first nine months of fiscal 2009. At December 31, 2009, the exchange rate of the Euro to the U.S, Dollar was $1.43 or 7.5% higher as compared to $1.33 at March 31, 2009. Fluctuations in foreign currencies impacted the Companys results for the periods presented herein. For the first nine months ended December 31, 2009, approximately 56.0% of the Companys net sales were generated in Europe and ROW. Further, approximately 68.6% of the Companys aggregate accounts receivable and inventory as of December 31, 2009 were held by its European subsidiaries.

Net sales were $746.5 million for the third quarter of fiscal 2010 versus $782.6 million in the third quarter of fiscal 2009. Foreign currency translation (primarily the Euro against the U.S. dollar) favorably impacted net sales in the third quarter of fiscal 2010 by approximately $57.4 million. Excluding the foreign currency translation impact, net sales decreased by approximately $93.5 million, or 11.9% primarily due to lower unit sales, partially offset by $8.9 million in lead related price increases.

Industrial Energy Europe and ROW net sales were $202.4 million for the third quarter of fiscal 2010 versus $234.5 million for the third quarter of fiscal 2009. Net sales, excluding a favorable foreign currency translation impact of $27.3 million, decreased $59.4 million or 25.3% due to lower unit sales in the network power and motive power markets, partially offset by $1.8 million in favorable lead related pricing.

Gross profit was $158.2 million in the third quarter of fiscal 2010 versus $162.0 million in the third quarter of fiscal 2009. Foreign currency translation favorably impacted gross profit in the third quarter of fiscal 2010 by $11.8 million. Excluding the impact of foreign currency translation, gross profit decreased by $15.7 million due to lower overall unit sales combined with a one time charge of $2.8 million to resolve a contract dispute related to a now-expired long-term separator supply agreement, partially offset by improved manufacturing efficiencies. Gross margin increased 0.5% to 21.2% from 20.7% in the third quarter of fiscal 2009.

Industrial Energy Europe and ROW gross profit was $38.1 million or 18.8% of net sales in the third quarter of fiscal 2010 versus $57.1 million or 24.3% of net sales in the third quarter of fiscal 2009. Gross profit, excluding a favorable foreign currency translation impact of $6.0 million, decreased $25.0 million primarily due to lower unit sales in both the network power and motive power markets and the lag in recovering rising lead costs, partially offset by improved plant and distribution efficiencies.

Industrial Energy Europe and ROW expenses were $43.1 million in the third quarter of fiscal 2010 versus $40.8 million in the third quarter of fiscal 2009. Excluding an unfavorable foreign currency translation impact of approximately $5.0 million, expenses decreased by $2.7 million primarily due to lower selling and marketing expenses.

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