Exide Technologies Business Report FY ended Mar. 2014

Financial Overview

(in million USD)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of change (%) Factors
Net Sales 2,855.4 2,971.7 (3.9) 1)
Operating Income (9.0) (53.4) - 2)
Sales by segment
Transportation Americas 760.4 879.8 (13.6) 3)
Transportation Europe & ROW 930.0 927.0 0.3 4)

1) Net Sales
-Net sales in the fiscal year ended March 31, 2014 dropped 3.9% from the previous fiscal year to USD 2,855.4 million. A favorable foreign currency translation impact of USD 40.8 million was offset by a decrease in sales of USD 157.0 million. The decrease in sales was caused primarily by lower demand and the loss of specific contracts.

2) Operating Income
-The Company had an operating loss of USD 9.0 million in the fiscal year ended March 31, 2014, a USD 44.4 million improvement from the previous fiscal year. Factors contributing to the smaller loss include a substantially lower amount of restructuring and impairment costs, the exiting of unprofitable contracts with OEMs, and higher pricing to other OEMs.

3) Transportation Americas
-Net sales for the Company's Transportation Americas segment decreased 13.6% to USD 760.4 million due to the exit of certain unprofitable OEM contracts and an USD 84.6 million reduction in third-party lead and tolling sales.

4) Transportation Europe and ROW
-The Transportation Europe and ROW segment had sales of USD 930.0 million in the fiscal year ended March 31, 2014, an increase of 0.3% from the previous fiscal year. Increased sales to OEMs and favorable lead-related pricing actions were partially offset due to the sale of the Company's Transportation Australasia business.

Chapter 11 Bankruptcy

-On April 30, 2015, the Company announced that its Plan of Reorganization (Plan) became effective today and that the Company has emerged from Chapter 11 as a newly reorganized private company. As previously announced, the Bankruptcy Court for the District of Delaware confirmed the Plan on March 27, 2015. Through the Plan, the Company has reduced its debt by approximately USD 600 million. (From a press release on April 30, 2015)

-The Company announced that it has filed a voluntary petition under Chapter 11 for reorganization pursuant to U.S. federal restructuring laws. Only the Company's operations in the U.S., including the GNB Industrial Division, are included in the filing. The Company plans to continue to operate globally without interruption during the reorganization. The Company has negotiated a USD 500 million debtor-in-possession (DIP) financing facility to be provided by a group of financial institutions and investors in connection with the filing. (From a press release on June 10, 2013)


-On March 2015, the Company announced that it will move to permanently close its lead-acid battery recycling facility in Vernon, California, U.S. The Company will close the facility under the terms of a non-prosecution agreement reached with the United States Attorney's Office for the Central District of California (the USAO) that resolves the USAO's criminal investigation into the Company. According to the agreement, the Company will avoid federal criminal liability for illegal disposal, storage, shipment, and transportation of hazardous waste. The Company admitted to committing these felonies at the Vernon plant during its operation. The Company is requesting that the Bankruptcy Court approve the agreements as well as authorize the Company to close the Vernon Facility at a hearing scheduled for March 27, 2015, at which the Company also will seek confirmation of its Chapter 11 Plan of Reorganization. (From a press release on March 12, 2015)

R&D Structure

-The Company has technology centers in Milton, Georgia, U.S.; Budingen, Germany; Azuqueca, Spain; and Romano di Lombardia, Italy.

Patents, Trademarks and Licenses

-The Company owns approximately 243 trademarks worldwide, and maintains licenses from others to use approximately 20 other trademarks worldwide. (As of Mar. 2014)

-The Company owns a full or partial interest in over 343 patents and applications for patents pending worldwide. (As of Mar. 2014)

Technological Alliance

-The Company has a research-based partnership with NanoTerra, and a three-way partnership with the University of Idaho and the Savannah River National Laboratory.

Product Development

Carbon Boost technology to improve battery recharge times
-The Company has developed a new technology called Carbon Boost which will allow batteries to recharge up to 1.5 times faster. Carbon Boost was first developed for the Company's Start-Stop AGM and EFB batteries. During use, traditional batteries develop a layer of sulphate particles on their negative plates which inhibits the recharging procedure, as energy is required to dissolve the sulphate. The unique carbon additives improve conductivity and cause the sulphate particles to dissolve more quickly. This, in turn, leads to improved charge acceptance and a significant reduction in charging times. (From a press release on September 4, 2014)

New range of Start-Stop batteries
-The Company announced that it has developed a new range of Start-Stop batteries. The new AGM battery will achieve a cycle life four times as long as a conventional battery. The battery will also have 20% more power and a charge acceptance which is three times larger than a conventional battery. Similar gains will also be achieved in Exide's new EFB battery. (From a press release on August 22, 2014)

Dual Battery System

-The Company launched its Dual Battery System, a series of vehicle batteries which dedicates different batteries for different vehicle functions. The Dual Battery System uses two AGM batteries to start the vehicle's engine, while the GEL batteries provide power for other components. Once the AGM batteries are charged during standard operation of the vehicle, the system draws power from its GEL batteries to power to the vehicle. This preserves the AGM batteries for the next time that the vehicle is started. Benefits of the Dual Battery System include improved reliability and increased weight savings while maintaining the same volume compared to standard flooded batteries. The Dual Battery System is already featured on Scania Streamliner trucks and will be included in other applications in the future. (From a press release on June 13, 2013)

Capital Expenditure

(in million USD)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Transportation Americas N/A 27.7 32.1
Transportation Europe & ROW 33.2 36.3
Industrial Energy Americas 4.1 9.3
Industrial Energy Europe & ROW 12.9 16.1
Unallocated Corporate 3.8 7.6
Total 81.8 101.5

-In the fiscal year that ended in March 2014, the Company is continuing to invest in production capacity to meet the demand for enhanced batteries. This demand can be attributed to the increasing numbers of Stop & Start and micro-hybrid vehicles.


Number of Employees

  Mar. 2014 Mar. 2014 Mar. 2013
Americas N/A 3,455 3,924
Europe & ROW 5,531 5,704
Total 8,986 9,628


Sales by Segment

(in million USD)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Transportation Americas N/A 760.4 879.8
Transportation Europe & ROW 930.0 927.0
Industrial Energy Americas 365.6 368.4
Industrial Energy Europe & ROW 799.4 796.5
Total 2,855.4 2,971.7


Sales by Geographic Area

(in million USD)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
U.S. N/A 1,126.0 1,248.2
France 190.1 190.7
Germany 393.3 382.5
Italy 236.4 217.4
Spain 263.6 238.2
Poland 114.4 105.8
Other 531.6 588.8
Total 2,855.4 2,971.7

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