Net earnings for the fourth fiscal quarter of 2009 were $3.3 million or $0.07 per diluted share, including an unfavorable $0.29 per share impact from the $13.8 million ($19.2 million pre-tax) charge for the company’s restructuring plans. This compares to diluted net earnings per share of $0.39 for the fourth fiscal quarter of 2008, which included unfavorable highlighted charges of $0.03 per share or $1.3 million ($1.9 million pre-tax). Net sales for the fourth quarter of 2009 were $393.2 million, a decrease of 32.4% from the prior year’s fourth quarter net sales of $581.9 million and a 14.7% sequential quarterly decrease from the third quarter of 2009’s net sales of $460.9 million. The 32.4% decline was attributed to a 19% decline in organic volume, 8% from weaker foreign currencies, primarily the euro, and 5% from reduced pricing related to lower commodity costs. The decline in organic volume was a direct result of reduced end-user demand.
Adjusted net earnings the fourth fiscal quarter of 2009, on a non-GAAP basis, were $0.36 per diluted share. This compares to the prior year’s fourth quarter of $0.42 per diluted share on an adjusted, non-GAAP basis. These earnings were achieved in spite of a significant decline in revenue which were offset by the positive effects of the company’s cost reduction activities and further reductions in commodity costs, net of pricing.
Highlighted charges and credits included a favorable $0.17 per share from the $8.5 million ($11.3 million pre-tax) gain on sale of facilities, and total charges of $0.44 per share comprised of: $15.9 million ($22.4 million pre-tax) for the restructuring plans; $3.4 million ($5.2 million pre-tax) for fees related to the company’s debt refinancing; $2.2 million ($3.4 million pre-tax) for a legal proceedings charge; and $0.2 million ($0.3 million pre-tax) for fees related to secondary stock offerings.
Excluding the highlighted charges and credits in both fiscal years, non-GAAP adjusted net earnings for fiscal 2009 were $97.8 million or $1.98 per diluted share, a 41% increase when compared to non-GAAP adjusted net earnings for fiscal 2008 of $69.2 million or $1.42 per diluted share.
As we previously announced on May 13, we achieved record earnings for the full year of $1.98 per diluted share on an as adjusted basis. This is in spite of the significant pressures we faced as a result of the global economic downturn. We achieved these results in large part through the efforts of our employees, our customer focus and our ongoing cost reduction activities, stated John D. Craig, chairman, president and chief executive officer of EnerSys. In response to the continuing economic downturn, we announced on May 13 that we expanded our restructuring programs which we expect will yield an additional annual savings of $7 million with a cost of $9 million.
Craig added, We maintain our previously announced first quarter guidance that non-GAAP adjusted net earnings per diluted share will be between $0.13 and $0.17, which excludes an expected charge of $0.09 per diluted share from our ongoing European restructure actions.
