Selling and administrative expenses for the fiscal 2011 third quarter were $111.9 million versus the comparable prior year period of $110.0 million. Foreign currency translation favorably impacted these operating expenses by $2.2 million. After adjusting for foreign currency translation, the increase in expenses resulted from volume related costs on higher sales as well as the timing of both annual and long-term incentive plan charges and executive transition costs in fiscal year 2011.
Fiscal 2011 Nine Month Consolidated Results
Net sales for the first nine months of fiscal 2011 aggregated $2.1 billion as compared with $2.0 billion for the prior fiscal year period, an increase of approximately 7%. Net sales in the fiscal 2011 period were positively impacted by price increases estimated at $130.9 million due to approximately 11% higher average lead prices period over period and overall higher unit volumes, partially offset by unfavorable foreign currency translation of ($58.7 million).
The Company reported net income for the nine months ended December 31, 2010 of $40.1 million or $0.50 per diluted share as compared to a net loss of $52.2 million or ($0.69) per share in the nine months ended December 31, 2009. The improvement in year-to-date net income was driven by significantly lower restructuring and impairment charges, higher gross profit, lower operating expenses and a significantly lower effective tax rate resulting principally from valuation allowance changes. Adjusted net income for the nine months ended December 31, 2010 was $45.0 million or $0.56 per share. This compares to adjusted net income of $11.0 million or $0.15 per share for the prior year nine month period.Adjusted EBITDA for the nine months ended December 31, 2010 aggregated $172.5 million versus $142.6 million in the comparable prior year period. Operating income for the first nine months of fiscal 2011 amounted to $86.4 million versus $2.5 million in the comparable fiscal 2010 period. Lower restructuring costs and higher gross profit were the major drivers for the improvement.