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Exide Technologies Withdraws Potential Sale
Of European Industrial Energy Group
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Alpharetta, Ga. – (June 28, 2006) – Exide
Technologies (NASDAQ: XIDE, www.exide.com), a global leader in
stored electrical-energy solutions, announced today that it is
withdrawing the sale of its European Industrial Energy and Rest
of World (ROW) operations announced earlier this year.
In the Form 8-K filed on April 20, 2006, Exide announced that
it had begun examining a number of strategic alternatives –
including the potential sale of the Company’s European
Industrial Energy operations.
“During the first quarter of FY ‘07, we evaluated a number of
alternatives to increase profitability and maximize shareholder
value, said Gordon A. Ulsh, President and Chief Executive
Officer of Exide Technologies. “As a result of this process, we
have decided not to proceed with the sale of our European
Industrial Energy and ROW business, and instead intend to
maximize the value of that business as part of our ongoing FY’07
Business Plan.”
About Exide Technologies
Exide Technologies, with operations in 89 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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Media/Investor Contact |
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Forward-Looking Statements
Except for historical information, this press 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. The
Company undertakes no obligation to publicly update or revise
any forward-looking statement in this or any prior
forward-looking statements whether as a result of new
information, future developments or otherwise.
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 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 and (e) statements
regarding the ability to comply with or alternatively obtain
amendments under the Company’s debt agreements.
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
Company’s ability to implement and fund based on current
liquidity business strategies and restructuring plans, (ii)
unseasonable weather (warm winters and cool summers) which
adversely affects demand for automotive and some industrial
batteries, (iii) 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, (iv) the Company’s ability to comply with
the covenants in its debt agreements or obtain waivers of
noncompliance, (v) 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, (vi) the
realization of the tax benefits of the Company’s net operating
loss carry forwards, which is dependent upon future taxable
income, (vii) 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, (viii) competitiveness
of the battery markets in North America and Europe, (ix) the
substantial management time and financial and other resources
needed for the Company’s consolidation and rationalization of
acquired entities, (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
Company’s exposure to fluctuations in interest rates on its
variable debt, (xii) the Company’s ability to maintain and
generate liquidity to meet its operating needs, (xiii) general
economic conditions, (xiv) the ability to acquire goods and
services and/or fulfill labor needs at budgeted costs, (xv) the
Company’s reliance on a single supplier for its polyethylene
battery separators, (xvi) the Company’s ability to successfully
pass along increased material costs to its customers, (xvii) the
Company’s ability to comply with the provisions of Section 404
of the Sarbanes-Oxley Act of 2002, (xviii) adverse reactions by
creditors, vendors, customers, and others to the going-concern
modification to the Company’s Consolidated Financial Statements
included in the Report of Independent Registered Public
Accounting Firm in this report, (xix) the loss of one or more of
the Company’s major customers for its industrial or
transportation products, and (xx) the Company’s ability to
consummate a rights offering and private placement of stock as
noted below, including obtaining appropriate shareholder
approval.
Therefore, the Company cautions each reader of this press
release carefully to consider those factors set forth above and
those factors described in Amendment No. 1 to the Company’s
Registration Statement on Form S-3 filed with the SEC on
September 14, 2005 and in the Company’s most recent Form 10-K to
be filed on June 29, 2006 because 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. |
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