Breaking News
FONT-SIZE Plus   Neg
Share SHARE

EnerSys Q2 Profit Rises, Guides Q3 EPS Below View; Shares Fall

EnerSys (ENS: Quote), a manufacturer of industrial batteries, Monday reported higher profit for the second quarter, but guided third-quarter earnings below view, sending the shares down by close to 8 percent in the extended trade. The firm sees a sequential reduction in third-quarter sales due to slowing in order intake.

Net earnings for the second quarter climbed to $43.8 million or $0.90 per share from $28.3 million or $0.57 per share reported last year.

The latest results included an unfavorable net of tax impact of $0.02 per share from a charge of $1.0 million for restructuring plans.

Prior-year results included an unfavorable net of tax impact of $0.01 per share from a charge of $0.7 million for restructuring plans and $0.4 million for fees related to acquisition activities, although partially offset by a $0.6 million legal settlement income.

Adjusted earnings for the quarter was $0.92 per share, while they stood at $0.58 per share in the prior year. The company's guidance was for earnings of $0.85 to $0.89 per share.

On average, nine analysts polled by Thomson Reuters expected the company to earn $0.87 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 1 percent to $554.2 million from $547.2 million last year. Analysts estimated revenues of $568.42 million for the quarter.

The sales growth reflected 2 percent increase in organic volume, 4 percent increase from acquisitions, a 4 percent decrease from foreign currency translation and a 1 percent drop due to pricing.

Sales improved in the Americas and Asia, but declined in Europe.

Looking forward to the third quarter, the company expects adjusted earnings of $0.77 to $0.81 per share, which excludes the expected charge of $0.08 from restructuring programs and acquisition expenses. Analysts currently estimate earnings of $0.89 per share last year.

John Craig, CEO, said, ''Recently, we experienced a slowing in our order intake which we expect will lead to a sequential reduction in our third quarter sales. If we continue to experience softness in our global markets we plan to take actions similar to those we took in 2009 to take costs out of our businesses, including additional restructuring programs, with the objective of improving longer term profitability."

ENS closed on Monday at $35.74, up 2.1 percent from the previous close, but lost 7.8 percent in the extended trade.

Register
To receive FREE breaking news email alerts for EnerSys and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving moderately lower in early trading on Monday, stocks have seen further downside as the trading day has progressed. With the drop on the day, the Dow has pulled back well off last Friday's record closing high. After reporting four consecutive monthly increases, the National Association of Realtors released a report on Monday showing an unexpected drop in U.S. existing home sales in the month of August. NAR said existing home sales fell 1.8 percent to a seasonally adjusted annual rate of 5.05 million in August. The European Central Bank remains ready to use additional unconventional tools to counter risks to the inflation outlook and to boost the euro area economy, ECB President Mario Draghi said on Monday. "The Governing Council remains fully determined to counter risks to the medium-term outlook for inflation," Draghi said in Brussels.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.