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Sellersville, PA, United States, 2010/06/02 - EnerSys announced today results for its fourth quarter and fiscal year 2010, which ended on March 31 (NYSE: ENS).
EnerSys the world’s largest manufacturer, marketer and distributor of industrial batteries, announced today results for its fourth quarter and fiscal year 2010, which ended on March 31, 2010. Net earnings for the fourth fiscal quarter of 2010 were $17.8 million or $0.36 per diluted share, including an unfavorable $0.09 per share impact from the $4.2 million, $6.2 million pre-tax, charge for restructuring plans. This compares to diluted net earnings per share of $0.05 for the fourth fiscal quarter of 2009, which included an unfavorable highlighted charge of $0.29 per share or $13.8 million, $19.2 million pre-tax, for restructuring plans. Net sales for the fourth fiscal quarter of 2010 were $450.5 million, an increase of 15% from the prior year fourth fiscal quarter net sales of $393.2 million and a 7% sequential quarterly increase from the third fiscal quarter of 2010’s net sales of $421.3 million. The 7% increase was the result of a 6% increase in organic volume, 3% from acquisitions, and 1% due to pricing, all of which was partially offset by 3% from weaker foreign currencies, primarily the euro and British pound.
Adjusted net earnings for the quarter, on a non-GAAP basis, were $0.45 per diluted share. This compares to the prior year fourth quarter net earnings of $0.34 per diluted share on an adjusted, non-GAAP basis. Please refer to the section included herein under the heading “Reconciliation of Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information.
“We are pleased with our previously reported earnings of $1.44 per diluted share on an as adjusted basis,” said John D. Craig, chairman, president and chief executive officer of EnerSys. “The actions we have taken over the past one and one half years are reflected in our results. As we have noted on several occasions we believe that EnerSys has emerged from the economic downturn a leaner and stronger company.”
Craig added, “We maintain our previously announced guidance for our first quarter for non-GAAP adjusted net earnings per diluted share of $0.47 to $0.51 which excludes the expected charge of $0.02 from our ongoing restructuring programs.”
Reconciliation of Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles, "GAAP". EnerSys' management uses the non-GAAP measure “adjusted net earnings” in their analysis of the Company's performance. This measure, as used by EnerSys in past quarters and years, adjusts net earnings determined in accordance with GAAP to reflect changes in financial results associated with the Company's restructuring initiatives and highlighted charges and income items. Management believes the presentation of this financial measure reflecting these non-GAAP adjustments provides important supplemental information in evaluating the operating results of the Company as distinct from results that include items that are not indicative of ongoing operating results; in particular, those charges that the Company incurs as a result of restructuring activities associated with its acquisitions and those charges and credits that are not directly related to operating unit performance and are unusual in nature. Because these charges are incurred as a result of an acquisition and in connection with secondary offerings on behalf of certain of our stockholders, they are not a valid measure of the performance of our underlying business. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for net earnings determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding the Company's ongoing operating results. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments.