This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Exide Technologies Management Discusses Q1 2013 Results - Earnings Call Transcript

Stocks in this article: XIDE

We also remain on track with the closure of our Frisco recycling operations and the sale of adjacent property. In October, the city is expected to fully fund an escrow account, at which time we will begin the process the wind down our operations. As we stated in June, the operations will cease before December 31, 2012. According to this time line, we expect to record a pretax gain of about $28 million as early as the second quarter. We expect to receive net proceeds of approximately $37 million when the transaction closes. With the Frisco closure, we will be exiting third-party lead sales.

As we discussed last quarter, we announced increased pricing to recoup investments to comply with new regulatory group [ph] requirements in the U.S. This pricing is now fully in effect with most of our aftermarket customers.

I am very pleased to report that Exide is now the sole battery supplier to Pep Boys. You may recall that we previously supplied all Bosch-branded batteries to this customer. We have now been awarded the remainder of Pep Boys' business, supplying all automotive, marine, line guard and heavy-duty batteries. This business is particularly attractive due to the historically high core return rates. Our product shipments for this new incremental business began in early July.

As we turn to Slide 5. Our first quarter lead production was about 80,000 tons in the U.S. As indicated by the pie chart, 77% was used to satisfy internal demand. External lead sales decreased about 1,900 tons compared to the first quarter of fiscal 2012. During the quarter, the average cost of purchased spent batteries as a percent of LME increased to record levels. As you're aware, lead has core pricing mechanics that are tied to the price of lead is quoted on the London Metals Exchange. Lead of LME is down quarter-over-quarter, but we're experiencing the opposite trend with core cost. We have been exploring and have had some success in moving to a blended LME and core charge pricing model that more accurately reflects our cost in this environment. The higher core cost negatively impacted third-party lead sales during the first quarter, which translated to little or no profits on these sales.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs