Exide Technologies Reports Fiscal 2013 Second Quarter Results

Exide Technologies Reports Fiscal 2013 Second Quarter Results

MILTON, Ga., Nov. 9, 2012 (GLOBE NEWSWIRE) -- Exide Technologies (Nasdaq:XIDE)
(www.exide.com), a global leader in stored electrical energy solutions,
announced today its fiscal 2013 second quarter and year to date financial
results for the periods ended September 30, 2012.

Consolidated Results

Fiscal 2013 second quarter consolidated net sales were $712 million as
compared to net sales of $773 million in the fiscal 2012 second quarter. Net
sales in the fiscal 2013 period were negatively impacted by both foreign
currency translation ($41.7) million and lead related pricing ($30.5) million.
The decrease was partially offset by increased sales in Industrial Energy
Americas, higher unit sales in the original equipment ("OE") channel in both
Transportation segments, and modest pricing in the Americas' aftermarket
channel.

Gross profit for the quarter of $103.7 million, declined by $15 million when
compared with the prior year period. A combination of continued high cost of
spent batteries in the Americas, coupled with a lower LME price of lead
weighed on results. The impact of this combination on the Americas business
aggregated $18.6 million when compared to the prior year period; and was only
partially offset by favorable pricing of $5.5 million, principally in the
transportation aftermarket channel.

Selling and administrative expenses for the fiscal 2013 second quarter were
$95.7 million or 13.4% of net sales versus $96.1 million or 12.4% of net sales
in the comparable prior year period.

Fiscal 2013 second quarter operating income was $6.8 million compared to $21.2
million in the prior year second quarter. The decrease is primarily the result
of higher spent battery input cost coupled with lower LME lead prices, and
compressed margins on third party lead sales.

Net loss for the current quarter was $13.9 million or ($0.18) per share
compared to the prior year period net loss of $3.6 million or ($0.05) per
share.

Fiscal 2013 Six Month Consolidated Results

Net sales for the first half of fiscal 2013 amounted to $1.4 billion as
compared with $1.5 billion for the prior fiscal year period. Net sales in the
fiscal 2013 period were negatively impacted by lead related price decreases of
approximately ($57.3) million. In addition, unfavorable foreign currency
translation aggregated approximately ($87.5) million further reducing fiscal
2013 net sales.

Gross profit declined in the fiscal 2013 first half by $37.3 million to $197.9
million. The primary driver of this decrease is a 10% increase in average cost
of spent batteries in the Americas coupled with lower LME based escalator
pricing. Lead prices were down 21% on average during the 2013 period when
compared to the prior year period. These items combined to decrease gross
profit by approximately $38 million. The decline in gross profit was partially
mitigated by reduced selling and administrative expenses as compensation costs
were contained during the first half of fiscal 2013.

The Company reported a net loss for the six months ended September 30, 2012 of
$120.4 million or ($1.56) per share as compared to a net loss of $8.8 million
or ($0.11) per share in the six months ended September 30, 2011. The fiscal
2013 net loss includes a non-cash deferred tax valuation allowance charge of
$86.7 million or ($1.12) per share.

As of September 30, 2012, the Company had cash and cash equivalents of $74.3
million and $134.7 million of availability under its revolving bank credit
facility. This compares to cash and cash equivalents of $84.8 million and
$141.1 million of availability under its revolving bank credit facility as of
September 30, 2011 and cash of $155.4 million and $152.8 million of
availability under the revolving bank credit facility at March 31, 2012. The
Company reported a use of free cash flow of $99 million for the six months
ended September 30, 2012 as compared to a use of $87 million for the
comparable prior year period. Jim Bolch, President and Chief Executive Officer
stated, "Due to the seasonality of the business and similar to fiscal 2012, we
expect third quarter free cash flow to be relatively flat and to generate free
cash flow in the fourth quarter sufficient to offset a substantial portion of
the year-to-date use."

Segment Information for the Three and Six Months Ended September 30, 2012

Transportation Segments

Net sales of the Company's combined Transportation segments in the fiscal 2013
second quarter was $424.2 million as compared to $471.9 million in the same
period of fiscal 2012. Net sales were unfavorably impacted by foreign currency
translation in the amount of ($23.3) million. Price decreases resulting from
lead escalator agreements negatively impacted total Transportation net sales
by approximately ($21.0) million in the fiscal 2013 second quarter. Fiscal
2013 second quarter aftermarket unit volume increased 1% as compared to the
prior year second quarter, while units sold to OE customers increased
approximately 11% quarter-over-quarter.

For the first half of fiscal 2013, Transportation Americas produced
approximately 164 thousand tons of lead in our North American recycling
operation, down about 3% from the prior year period. We sold 10% of this to
third parties and 12% under tolling arrangements. This compares to 12% and 16%
to third parties and under tolling arrangements, respectively, in the prior
year comparable period. Profit on third party lead sales was down
substantially as a result of the combination of historically high spent
battery costs and low relative LME based lead prices. Third party lead sales
will be eliminated in the second half of fiscal 2013 as the Frisco, Texas and
Reading, Pennsylvania lead production capacity is taken off line.

The fiscal 2013 second quarter operating loss, excluding restructuring and
impairment charges, was $0.6 million as compared to operating income of $7.4
million in the prior year second quarter. The decline is primarily the result
of higher OE mix, lower fixed cost absorption and higher commodity costs.

Net sales for the first half of fiscal 2013 were $833.4 million as compared to
$916.7 million for the same period of fiscal 2012 primarily due to price
decreases as a result of lower average lead prices and unfavorable currency
translation, partially offset by higher unit volumes to both aftermarket and
OE customers. Operating loss, excluding restructuring and impairment charges,
was ($6.0) million for the six months ended September 30, 2012 compared to
$15.1 million in the same period of the prior year. The decline is the result
of higher OE mix, lower fixed cost absorption and higher commodity costs.

Industrial Energy Segments

Fiscal 2013 second quarter total net sales for the Company's combined
Industrial Energy segments was $287.5 million as compared to $301.0 million in
the comparable fiscal 2012 period. Net sales were unfavorably impacted by
foreign currency translation of ($18.5) million. Price decreases resulting
from lead escalator agreements negatively impacted net sales by ($9.6) million
in the fiscal 2013 second quarter as compared to the net sales reported in the
same period of fiscal 2012. Fiscal 2013 second quarter operating income,
excluding restructuring and impairment charges, was $15.7 million compared to
$21.2 million in the prior year period.

Net sales for the first half of fiscal 2013 were $571.7 million as compared to
$601.3 million for the same period of fiscal 2012. The decrease was due to
price decreases resulting from lower average lead prices, unfavorable foreign
currency translation, partially offset by improved volumes. Operating income,
excluding restructuring and impairment charges, was $28.3 million for the six
months ended September 30, 2012 compared to $34.6 million in the same period
of the prior year. The decrease is primarily due to a higher mix of motive
power OE sales in Europe as well as unfavorable lead recovery in the Americas.

Outlook

Bolch said, "We expect the normal seasonal nature of our business will result
in higher revenue and substantially improved operating income in the second
half of the fiscal year. This should be further supplemented by the
combination of transportation aftermarket pricing and a better lead equation,
assuming the cost of cores and LME lead pricing remain stable at the improved
levels we saw in the month of October."

Non-GAAP Financial Measure

The Company defines Free Cash Flow as cash from operating activities less cash
from investing activities, both as measured in accordance with U.S. Generally
Accepted Accounting Principles. We believe that Free Cash Flow provides useful
information about the cash generated by our core operations after capital
expenditures and the sale of non-core assets.

The foregoing non-GAAP financial measure should be used in addition to, but
not in isolation or asa substitute for, the analysis provided in the Company's
measures of financial performance prepared in conformity with U.S. GAAP.  The
non-GAAP financial measure should be read only in conjunction with the
Company's condensed consolidated financial statements prepared in accordance
with GAAP.

Conference Call

The Company previously announced that it will hold a conference call to
discuss its results on Monday, November 12, 2012 at 9:00 a.m. Eastern Time.

Conference call details:
Dial-in number for US/Canada: 877-296-1542
Dial-in number for international callers: 706-679-5918
Conference ID: 37834838

A telephonic replay of the conference call is available:
Dates:from 12:00 p.m. ET November 12, 2012 to 11:59 p.m. ET November 26, 2012
Domestic dial-in:855-859-2056
International dial-in:404-537-3406
Passcode:3783438

About Exide Technologies

Exide Technologies, with operations in more than 80 countries, is one of the
world's largest producers and recyclers of lead-acid batteries. The Company's
four global business groups -- Transportation Americas, Transportation Europe
and Rest of World, Industrial Energy Americas and Industrial Energy Europe and
Rest of World -- provide a comprehensive range of stored electrical energy
products and services for industrial and transportation applications.

Transportation markets include original-equipment and aftermarket automotive,
heavy-duty truck, agricultural and marine applications, and new technologies
for hybrid vehicles and automotive applications. Industrial markets include
network power applications such as telecommunications systems, electric
utilities, railroads, photovoltaic (solar-power related) and uninterruptible
power supply (UPS), and motive-power applications including lift trucks,
mining and other commercial vehicles.

Further information about Exide, including its financial results, are
available at www.exide.com.

The Exide Technologies logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3300

Forward-Looking Statements

Except for historical information, this news release may be deemed to contain
"forward-looking" statements. The Company desires to avail itself of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 (the
"Act") and is including this cautionary statement for the express purpose of
availing itself of the protection afforded by the Act.

Examples of forward-looking statements include, but are not limited to (a)
projections of revenues, cost of raw materials, income or loss, earnings or
loss per share, capital expenditures, growth prospects, dividends, the effect
of currency translations, capital structure, and other financial items, (b)
statements of plans and objectives of the Company or its management or Board
of Directors, including the introduction of new products, or estimates or
predictions of actions by customers, suppliers, competitors or regulating
authorities, (c) statements of future economic performance, (d) statements
regarding liquidity and (e) statements of assumptions, such as the prevailing
weather conditions in the Company's market areas, underlying other statements
and statements about the Company or its business.

Factors that could cause actual results to differ materially from these
forward looking statements include, but are not limited to, the following
general factors such as: (i) the fact that lead, a major constituent in most
of the Company's products, experiences significant fluctuations in market
price and is a hazardous material that may give rise to costly environmental
and safety claims, (ii) the Company's ability to implement and fund business
strategies based on current liquidity, (iii) the Company's ability to realize
anticipated efficiencies and avoid additional unanticipated costs related to
its restructuring activities, (iv) the cyclical nature of the industries in
which the Company operates and the impact of current adverse economic
conditions on those industries, (v) unseasonable weather (warm winters and
cool summers) which adversely affects demand for automotive and some
industrial batteries, (vi) the Company's substantial debt and debt service
requirements which may restrict the Company's operational and financial
flexibility, as well as imposing significant interest and financing costs,
(vii) the litigation proceedings to which the Company is subject, the results
of which could have a material adverse effect on the Company and its business,
(viii) the realization of the tax benefits of the Company's net operating loss
carry forwards, which is dependent upon future taxable income, (ix)
competitiveness of the battery markets in the Americas and Europe, (x)risks
involved in foreign operations such as disruption of markets, changes in
import and export laws, currency restrictions, currency exchange rate
fluctuations and possible terrorist attacks against U.S. interests, (xi) the
ability to acquire goods and services and/or fulfill later needs at budgeted
costs, (xii) general economic conditions, (xiii) the Company's ability to
successfully pass along increased material costs to its customers, (xiv)
recently adopted U.S. lead emissions standards and the implementation of such
standards by applicable states, and (xv) those risk factors described in the
Company's fiscal 2012 Form 10-K filed on June 7, 2012.

The Company cautions each reader of this news release to carefully consider
those factors set forth above.Such factors have, in some instances, affected
and in the future could affect the ability of the Company to achieve its
projected results and may cause actual results to differ materially from those
expressed herein.

Financial tables follow

                                                             
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per-share data)
                                                             
                      For the Three Months Ended  For the Six Months Ended
                      September 30, September 30, September 30, September 30,
                       2012          2011          2012          2011
                                                             
                                                             
Net sales              $711,692    $772,953    $1,405,130  $1,518,048
Cost of sales          608,033      654,339      1,207,216    1,282,784
Gross profit           103,659      118,614      197,914      235,264
                                                             
Selling and
administrative         95,715       96,140       189,400      198,877
expenses
Restructuring and      1,108        1,281        624          1,577
impairments, net
Operating income       6,836        21,193       7,890        34,810
                                                             
Other (income)         (513)        5,751        1,098        5,870
expense, net
Interest expense, net  17,229       18,074       31,326       35,735
Loss before income     (9,880)      (2,632)      (24,534)     (6,795)
taxes
Income tax provision   3,887        995          95,700       2,628
Net loss               (13,767)     (3,627)      (120,234)    (9,423)
Net income (loss)
attributable to        111          (39)         140          (643)
noncontrolling
interests
Net loss attributable  $(13,878)   $(3,588)    $(120,374)  $(8,780)
to Exide Technologies
                                                             
Loss per share                                                
Basic and diluted      $(0.18)     $(0.05)     $(1.56)     $(0.11)
                                                             
Weighted average                                              
shares
Basic and diluted      77,210       77,627       77,178       77,573

                                                              
                                                              
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per-share data)
                                                              
                                            September 30, 2012 March 31, 2012
ASSETS                                                         
Current assets:                                                
Cash and cash equivalents                    $74,281          $155,368
Accounts receivable, net                     542,693           500,375
Inventories                                  541,315           479,467
Prepaid expenses and other current assets    27,464            21,840
Deferred income taxes                        10,500            30,804
Total current assets                         1,196,253         1,187,854
Property, plant and equipment, net           626,630           622,975
Other assets:                                                  
Goodwill and intangibles, net                157,645           164,039
Deferred income taxes                        91,691            174,601
Other noncurrent assets                      45,561            45,517
                                            294,897           384,157
Total assets                                 $2,117,780       $2,194,986
LIABILITIES AND STOCKHOLDERS' EQUITY                           
Current liabilities:                                           
Short-term borrowings                        $39,587          $20,014
Current maturities of long-term debt         63,489            3,787
Accounts payable                             429,882           390,549
Accrued expenses                             291,388           276,809
Total current liabilities                    824,346           691,159
Long-term debt                               690,635           752,930
Noncurrent retirement obligations            221,653           236,312
Deferred income taxes                        12,511            17,158
Other noncurrent liabilities                 96,075            95,075
Total liabilities                            1,845,220         1,792,634
                                                              
STOCKHOLDERS' EQUITY                                           
Preferred stock, $0.01 par value, 1,000
shares authorized, 0 shares issued and       --               --
outstanding
Common stock, $0.01 par value, 200,000
shares authorized, 79,290 and 78,351 shares  793               783
issued and outstanding
Additional paid-in capital                   1,135,785         1,133,417
Accumulated deficit                          (836,287)         (715,913)
Accumulated other comprehensive loss         (28,429)          (16,493)
Total stockholders' equity attributable to   271,862           401,794
Exide Technologies
Noncontrolling interests                     698               558
Total stockholders' equity                   272,560           402,352
Total liabilities and stockholders' equity   $2,117,780       $2,194,986

                                                          
                                                          
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
                                                          
                                        For the Six Months Ended
                                        September 30, 2012 September 30, 2011
Cash Flows From Operating Activities:                      
Net loss                                 $(120,234)       $(9,423)
Adjustments to reconcile net loss to net                   
cash used in operating activities
Depreciation and amortization            39,442            43,284
Net (gain) loss on asset sales /         (1,081)           423
impairments
Deferred income taxes                    94,379            (5,631)
Provision for doubtful accounts          570               585
Non-cash stock compensation              2,378             2,585
Amortization of deferred financing costs 2,125             2,143
Currency remeasurement loss              252               9,383
Changes in assets and liabilities                          
Receivables                              (25,552)          (4,857)
Inventories                              (70,615)          (63,121)
Other current assets                     (6,404)           (8,315)
Payables                                 48,439            12,912
Accrued expenses                         (3,800)           (13,549)
Other noncurrent liabilities             (8,126)           (6,121)
Other, net                               (2,103)           (4,172)
Net cash used in operating activities    (50,330)          (43,874)
                                                          
Cash Flows From Investing Activities:                      
Capital expenditures                     (49,621)          (43,192)
Proceeds from asset sales                1,084             36
Net cash used in investing activities    (48,537)          (43,156)
                                                          
Cash Flows From Financing Activities:                      
Increase in short-term borrowings        20,321            14,035
Decrease in other debt                   (1,928)           (1,316)
Acquisition of noncontrolling            --                340
interests/other
Net cash provided by financing           18,393            13,059
activities
                                                          
Effect of exchange rate changes on cash  (613)             (2,560)
and cash equivalents
                                                          
Net decrease in cash and cash            (81,087)          (76,531)
equivalents
Cash and cash equivalents, beginning of  155,368           161,363
period
Cash and cash equivalents, end of period $74,281          $84,832
                                                          
                                                          
Supplemental Disclosures of Cash Flow                      
Information:
Cash paid during the period                                
Interest                                 $32,942          $34,357
Income taxes (net of refunds)            $3,191           $6,118

                                                             
                                                             
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED SELECTED SEGMENT FINANCIAL INFORMATION

                      For the Three Months Ended  For the Six Months Ended
                      September 30, September 30, September 30, September 30,
                       2012          2011          2012          2011
                      (In thousands)
Net sales                                                     
Transportation         $213,038    $224,437    $428,179    $442,034
Americas
Transportation Europe  211,120      247,478      405,263      474,698
& ROW
Industrial Energy      98,862       90,994       185,550      179,539
Americas
Industrial Energy      188,672      210,044      386,138      421,777
Europe & ROW
                      $711,692    $772,953    $1,405,130  $1,518,048
                                                             
Operating income                                              
(loss)
Transportation         $(5,593)    $813        $(15,011)   $(3,737)
Americas
Transportation Europe  4,976        6,595        8,998        18,849
& ROW
Industrial Energy      7,105        11,519       13,517       20,908
Americas
Industrial Energy      8,599        9,730        14,788       13,665
Europe & ROW
Unallocated corporate  (7,143)      (6,183)      (13,778)     (13,298)
expenses
                      7,944        22,474       8,514        36,387
Less: restructuring    1,108        1,281        624          1,577
and impairments, net
                                                             
Total operating income $6,836      $21,193     $7,890      $34,810
                                                             
Depreciation and                                              
Amortization
Transportation         $6,860      $6,779      $13,923     $13,738
Americas
Transportation Europe  4,492        5,032        9,299        10,099
& ROW
Industrial Energy      2,590        3,049        5,271        6,072
Americas
Industrial Energy      4,329        5,392        8,788        10,727
Europe & ROW
Unallocated corporate  1,260        1,277        2,161        2,648
expenses
                      $19,531     $21,529     $39,442     $43,284
                                                             
Capital expenditures                                          
Transportation         $11,059     $10,319     $20,021     $18,467
Americas
Transportation Europe  7,869        7,888        15,984       15,058
& ROW
Industrial Energy      3,014        2,709        5,988        4,109
Americas
Industrial Energy      3,011        3,342        4,640        5,267
Europe & ROW
Unallocated corporate  582          211          2,988        291
expenses
                      $25,535     $24,469     $49,621     $43,192

                                                       
                                                       
EXIDE TECHNOLOGIES AND SUBSIDIARIES
COMPUTATION OF FREE CASH FLOW
(in millions)
                                                       
                                     FOR THE SIX MONTHS ENDED
                                     September 30, 2012 September 30, 2011
                                                       
Net cash used in operating activities $(50.3)          $(43.9)
                                                       
Net cash used in investing activities (48.5)            (43.2)
                                                       
Free Cash Flow                        $(98.8)          $(87.1)
                                                       

CONTACT: MEDIA CONTACT:
         Susan Jaramillo
         Vice President, Corporate Communications
         203/699-9133 phone
         susan.jaramillo@exide.com
        
         INVESTOR CONTACT:
         Carol Knies
         Senior Director, Investor Relations
         Exide Technologies
         678/566-9316 phone
         carol.knies@exide.com

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