ALPHARETTA, Ga., Dec 13, 2007 (BUSINESS WIRE) -- Exide Technologies, (NASDAQ: XIDE, www.exide.com), a global leader in stored electrical-energy solutions, announced today plans for the capacity expansion at its transportation manufacturing facility in Gujarat, (Ahmedabad) India. The Company is investing in equipment upgrades, line expansions, infrastructure and utilities at its Tudor India Ltd. (TIL) location in its efforts to increase operational capacity from 600,000 batteries up to 1,000,000 batteries per year.
Best known for the production of the Prestolite(R) brand of lead-acid batteries for both automotive and inverter applications, TIL is the Indian arm of Chloride Motive Power Batteries, UK, a wholly owned subsidiary of Alpharetta-Georgia based Exide Technologies.
Most recently, TIL increased its capacity in FY07 resulting in growth in its financial performance. For the half year ending September 30, 2007, TIL registered a 44 percent increase in net sales to US $15 million as compared to the same period for the previous year. The newest planned capacity expansion, expected to be completed by June 2008, also will allow for the operation's production of innovative state-of-the-art products in wet form for original equipment and aftermarket customers in the region.
"We expect that the planned capacity increase at TIL will allow Exide to further increase its share and brand image in the rapidly developing Asia Pacific battery market," said Luke Lu President - Asia Pacific for Exide Technologies. "The expansion is part of our Company's overall strategy that focuses on taking advantage of profitable growth opportunities - both in manufacturing and global sourcing - particularly in India and China."
In 1997, TIL was the first company to introduce maintenance free lead-acid batteries designed with polyethylene separators, cold forged terminals and bone dry charged batteries in India, and offer the products for most types of vehicles manufactured in India, including cars, light and heavy commercial vehicles, sport utility vehicles, and tractors.
With 16 branches and a wide dealer network of approximately 230 distributors in India, TIL is well equipped to serve a broad range of customers in the global marketplace. The operation supplies batteries to both original equipment and aftermarket customers including American Power Conversion; Ashok Leyland; Atlas Capco; Caterpillar; Indo Farm Equipment, International Tractors, Mahindra & Mahindra Tractors; Reliance; Sudir Genset; Supernova; Tatra; Voltas; and Volvo.
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.
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 and (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.
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 litigation proceedings to which the Company is subject, the results of which could have a material adverse effect on the Company and its business, (v) the realization of the tax benefits of the Company's net operating loss carry forwards, which is dependent upon future taxable income, (vi) 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, (vii) competitiveness of the battery markets in North America and Europe, (viii) the substantial management time and financial and other resources needed for the Company's consolidation and rationalization of acquired entities, (ix) 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, (x) the Company's exposure to fluctuations in interest rates on its variable debt, (xi) the Company's ability to maintain and generate liquidity to meet its operating needs, (xii) general economic conditions, (xiii) the ability to acquire goods and services and/or fulfill labor needs at budgeted costs, (xiv) the Company's reliance on a single supplier for its polyethylene battery separators, (xv) the Company's ability to successfully pass along increased material costs to its customers, and (xvi) the Company's significant pension obligations over the next several years.
Therefore, the Company cautions each reader of this press release carefully to consider those factors set forth above and those factors described in the Company's Form 10-K filed on June 11, 2007 and its Form 10-Q filed on November 8, 2007, 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.
(XIDE-C)
SOURCE: Exide Technologies
J.Addams & Partners, Inc. MEDIA CONTACTS: Jeannine Addams Kristin Wohlleben 404/231-1132 phone jfaddams@jaddams.com kwohlleben@jaddams.com or Exide Technologies INVESTOR CONTACT: Todd Atenhan James Kautz 404-806-1393 phone investorrelations@exide.com
Copyright Business Wire 2007
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