logo
Share SHARE
FONT-SIZE Plus   Neg

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Comcast Corp found itself in an unsavory situation after a customer's name on a bill was changed from Ricardo to 'A**hole', ostensibly by a disgruntled employee who tried to get the customer to retain her current cable service and sign a two-year contract. Blockbuster sales of big-screen iPhones during the holiday quarter has helped tech giant Apple Inc. (AAPL) to tie with Samsung to become the world's largest smartphone vendor. Both Apple and Samsung sold 74.5 million smartphones during the December quarter, according to research firm Strategy Analytics.... Toyota Motor Sales, U.S.A., Inc., a unit of Japanese auto giant Toyota Motor Corp. (TYT.L, TM), said it is recalling 52,000 - 2011-2012 Avalon sedans in the U.S. due to a wiring problem that increases risk of fire. The company says cargo in trunk of the affected cars could contact one of the audio...
comments powered by Disqus
RELATED NEWS
Trade ENS now with 
Follow RTT