Alpharetta, Georgia - (June 9, 2008) - Exide Technologies (NASDAQ:XIDE)(www.exide.com), a global leader in stored electrical-energy solutions, announced that on June 9, 2008 it filed its Annual Report on Form 10-K for the fiscal year ended March 31, 2008.

Fiscal 2008 Highlights of Fourth Quarter and Full Year:

• Fourth quarter net income of $63.3 million or $.80 per diluted share compared to a net loss of $21.7 million or ($.36) per share in the 2007 fiscal fourth quarter
• Fourth quarter net sales of $1.03 billion, an increase of 28% over the prior year quarter
• Full year net income of $32.1 million or $.46 per diluted share compared to a net loss of $105.9 million or ($2.37) per share in fiscal 2007
• Full year net sales of $3.70 billion, an increase of 26% from $2.94 billion in fiscal 2007

Fourth Quarter

Net income for the fourth fiscal quarter was $63.3 million or $.80 per diluted share, including a favorable tax benefit of $25.0 million or $.32 per diluted share related to the reversal of a valuation allowance against net deferred tax assets in the United States. Net income also included a favorable impact from currency remeasurement in the amount of $14.8 million, net of tax ($22.6 million on a pre-tax basis) or $.19 per diluted share, and an unfavorable unrealized loss on our warrants of $4.2 million or ($.05) per diluted share. The current quarter’s net income compares to a net loss in the prior year fiscal fourth quarter of $21.6 million or ($.36) per share.

Net sales of $1.03 billion for the current year quarter increased by 28% as compared to net sales of $806.6 million in the comparable prior year period. Excluding $81.0 million resulting from favorable foreign exchange, sales increased by $142.7 million; the result of the continued positive impact of pricing in all businesses and favorable mix in the Transportation Americas division.

EBIT and Adjusted EBITDA for the current year period were $64.5 million and $80.1 million, respectively, as compared with EBIT and Adjusted EBITDA of $4.5 million and $43.9 million, respectively, in the prior year’s quarter. These strong operating earnings were the result of an increase in gross profit to $178.3 million, or 17.3% of net sales versus $128.0 million, or 15.9% of net sales in prior year comparable period. This improvement resulted from the continued execution of our manufacturing cost reduction activities, favorable product mix and higher recovery of lead and other cost increases through pricing, particularly in our Industrial Energy Europe division. Gordon A. Ulsh, President and CEO stated, “All of our business segments contributed to the strength of earnings in the fiscal year 2008 fourth quarter as we gained pricing and volume traction.”

Fiscal Year 2008

The Company reported net income for the full fiscal year 2008 of $32.1 million or $.46 per diluted share as compared with a net loss of $105.9 million or ($2.37) per share in fiscal 2007. The current year results include a tax provision of $10.9 million, which consists of the $25.0 million or $.36 per diluted share tax benefit relating to the U.S. valuation allowance reversal in the fourth quarter, partially offset by a $16.7 million or ($.24) per diluted share tax charge in our fiscal 2008 second quarter relating to a reduction in our deferred tax asset in Germany due to legislated tax rate reductions. The fiscal 2008 results also include foreign currency remeasurement gains of $26.7 million, net of tax ($40.8 million pre-tax) or $.38 per diluted share and a net of tax charge from the loss on early extinguishment of debt in the amount of $16.3 million ($21.3 million pre-tax) or ($.24) per diluted share.

Net sales for fiscal 2008 aggregated $3.70 billion as compared with $2.94 billion in fiscal 2007, an increase of 26%. Excluding the impact of favorable foreign exchange, net sales increased by $528.5 million or 18%. Pricing in all of our businesses to compensate for the escalating cost of lead and other key cost inputs to our manufacturing and distribution processes was the major driver of higher sales. The Transportation Americas business experienced unit volume increase year-over-year, driven by a 6.3% increase in units sold through the independent aftermarket channels offset by a 10% reduction in units to the original equipment customer base. The other three business segments saw volume reductions of 2.3% in Industrial Energy Americas, 4.5% in Industrial Energy Europe and ROW, and 7.9% in Transportation Europe and ROW. Unit volume reductions in the two European and ROW segments were partially the result of our on-going initiative to improve customer profitability.

“As we have consistently stated over the past couple of years, we have been willing to exit unprofitable business and this is reflected in the volume reductions in our European and ROW segments,” said Mr. Ulsh.

From an operating perspective, gross profit increased by $120.4 million to $593.2 million in fiscal 2008. Keys to this improvement are the continued efficiency benefits derived from Take Charge!, capital spending related cost reductions, unit volume increases in our Transportation Americas business and pricing related margin improvements with the exception of Industrial Energy Europe which was impacted by delayed lead escalators for much of the year. The increased gross profit was leveraged against a relatively modest increase in selling, general and administrative costs, which increased approximately 5.2% including the unfavorable impact of the strengthening Euro.

EBIT on a full year basis was $128.5 million versus an EBIT loss of $10.1 million in fiscal 2007. Adjusted EBITDA increased 54% to $244.1 million from $158.6 million in the prior year. This is on top of a 52% increase in Adjusted EBITDA in fiscal 2007 as compared with fiscal 2006. “We are obviously pleased with the improved earnings trend and are excited about the prospects fiscal 2009 present,” said Ulsh.

The Company, as it has said in the past, uses Adjusted EBITDA as a key measure of its operational financial performance. This measure underlies the Company’s operational performance and excludes the nonrecurring impact on the Company’s current restructuring actions. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and restructuring charges. Our Adjusted EBITDA definition also adjusts reported earnings for the effect of non-cash currency remeasurement gains or losses, the non-cash gain or loss from revaluation of the Company’s warrants liability, impairment charges and non-cash gains or losses on asset sales as well as a specific exclusion for the loss on early extinguishment of debt recorded in the first quarter of fiscal 2008. See the reconciliations of net income (loss) to EBIT and Adjusted EBITDA in the attachments to this release.

Conference Call

The Company previously announced that it will hold a conference call to discuss its results on June 9, 2008 at 11:00 a.m. Eastern Time.

• Dial-in number for US/Canada: (877) 563-6439
• Dial-In number for international callers: (706) 758-9457
• Conference ID: 47666168

Financial tables attached (62 KB PDF)

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 42-volt 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. 

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