Exide Technologies Business Report FY2008

Business Highlights

Financial Overview (in thousand dollars)
  FY2008 FY2007 Rate of change (%) Factors
Consolidated figures
Sales 3,322,332 3,696,671 (10.1) -
Gross profit 613,668 593,190 3.5 -
Sales results in the Transportation segment
North America
1,136,631 1,126,388 0.9


Transportation European and ROW 908,085 1,156,007 (21.4) 2)

Transportation segment
-Net sales for fiscal 2008 were $10.2 million, or 0.9%, higher than fiscal 2007 due to the favorable impact of price, partially offset by a decline in aftermarket and OEM unit sales as well as a $45.6 million unfavorable impact caused by the lower average price of lead. Third-party lead sales for fiscal 2008 were approximately $21.3 million lower than fiscal 2007.

-Net sales in fiscal 2008, excluding the favorable impact of $1.2 million in foreign currency translation, decreased by $249.1 million, or 21.6% compared to fiscal 2007. The decrease was primarily due to lower unit volumes in the aftermarket and OEM channels as well as $63.2 million in reduced pricing related to the decrease in the market price of lead, partially offset by favorable non-lead pricing actions in both channels.

-The Company announced a new supply agreement with Toyota Motor Engineering & Manufacturing North America (TEMA). The Company has begun shipping lead-acid batteries for the new Toyota Venza, a model assembled at Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) in Kentucky, USA. The Company is providing TMMK up to 75,000 units of starting batteries annually, which are manufactured at its facility in Bristol, Tennessee, USA. (From a press release on Mar. 25, 2009)

-The Company announced that it has entered into a nonbinding Memorandum of Understanding (MOU) with China-based lead-acid battery manufacturer, Leoch Battery Corporation (Leoch). Under the MOU, the two parties will create a joint venture to manufacture, sell and distribute automotive battery products and related components in China. The Company will hold a majority of the equity interests in the new company. (From a press release on Dec. 18, 2008)


R&D Structure
-The Company announced its planned formation of an Advanced Research and Development Organization at its world headquarters in Alpharetta, Georgia. The organization's work will include development of advanced lead-acid systems and other battery chemistries, including lithium ion, for applications such as hybrid electric vehicles and renewable energy storage. A Global Product Development Center will also be established in Alpharetta for worldwide Transportation. (From a press release on Oct. 8, 2008)

Patent, Trademarks and Licenses
-The Company currently owns approximately 293 trademarks and maintains licenses from others to use approximately 19 trademarks worldwide.

-The Company currently owns all or a partial interest in greater than 350 patents and applications for patents pending worldwide.