Plunging revenues and sinking sales blotted
fourth-quarter earnings announcement today. And investors weren't feeling energized by the industrial battery-maker, running down the stock in after-market action.
The company is one of the largest manufacturers of industrial batteries in the world, particularly in Europe. But its earnings this quarter came to a measly $3.3 million, or 7 cents per share. That's well off the $19.5 million and 39 cents per share earned in the same period last year.
The company was quick to note that adjusting the earnings by excluding a $13.8 million restructuring charge brought them to 36 cents per share.
Fourth-quarter sales also missed projections. The company posted revenue of $393.2 million, which was off more than 30% from a year-over-year total of $581.9 million. EnerSys, based in Reading, PA, said the drop was mostly due to a slip in organic volume sales, as well as reduced pricing from lower commodity costs.
The company's sales are split into two segments. There's motive power: a type of battery found in big, industrial vehicles. Then there's reserve power: back-up batteries for utilities and telecoms. At this time last year, motive power made up a larger share of net sales compared to reserve power. But this quarter saw reserves beat motives, with motive power sales slumping 40% since last year.
"In response to the continuing economic downturn, we announced on May 13 that we expanded our restructuring programs which we expect will yield an additional annual savings of $7 million with a cost of $9 million," President and CEO John Craig said in a release.
On the subject of first-quarter forecasts, he added, "we maintain our previously announced first-quarter guidance that non-GAAP adjusted net earnings per diluted share will be between $0.13 and $0.17, which excludes an expected charge of $0.09 per diluted share from our ongoing European restructure actions."
Shares were changing hands in the red in after market trading, sliding $2.38 or nearly 14% after the close.
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