MILTON, Ga., July 20, 2010 (GLOBE NEWSWIRE) -- Exide Technologies (Nasdaq:XIDE) (www.exide.com), a global leader in stored electrical-energy solutions, announced today that it has secured a new supply contract with the Defense Supply Center, Columbus [Ohio] (DSCC). Known to more than 24,000 military and civilian customers and 10,000 contractors as one of the largest suppliers of weapon systems spare parts, the DSCC is a supply/demand chain operation of the Defense Logistics Agency (DLA) managing more than two million different items and accounting for more than $3 billion in annual sales.
According to the terms of the two-year base contract (with the option to extend the agreement up to three additional years), Exide will supply heavy-duty wet cell (flooded) product to the DSCC for aftermarket replacement use in tanks, armed vehicle applications, and equipment for all branches of the U.S. armed forces. The Company will ship an estimated 287,000 batteries during the first two years of the agreement. These batteries will be delivered to military bases and sites across the U.S. through the Exide branch network comprised of 68 U.S. sales locations.
The Company's newest wet battery contract with the DSCC and the DLA is its fourth multi-year supply agreement since 1994. In addition, in August 2008, the DSCC selected Exide to provide its dry-charge products for military vehicle applications globally through military depots. Collectively, eight consecutive contracts with the DSCC/DLA make Exide a significant contract supplier for batteries for military applications.
"Our ever-strengthening alliance with the DSCC is testament that Exide is fast becoming a battery supplier of choice ― supporting the most demanding of requirements ― for U.S. military forces and those in other parts of the world," said Bruce Cole, President – Transportation Americas for Exide Technologies. "This contract also affords us the unique opportunity to build upon an already strong relationship with an important customer while streamlining logistics costs and ensuring just-in-time delivery of superior product through our strong branch network."
The first battery sets for Exide's newest agreement with the DSCC, scheduled for delivery beginning in July 2010, will be produced at the Company's Transportation manufacturing plant in Manchester, Iowa. Exide has a long history as a battery supplier for military-vehicle applications all over the world. The Company's Industrial Energy division also has a leading reputation as a supplier of submarine batteries.
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 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.
The Exide Technologies logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5067
Forward-Looking Statements
Except for historical information, this press release may be deemed to contain "forward-looking" statements. The Company is including this cautionary statement for the express purpose of availing itself of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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 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, (ii) the Company's ability to implement and fund business strategies based on current liquidity, (iii) the Company's ability to realize anticipated efficiencies and avoid additional unanticipated costs related to its restructuring activities, (iv) the cyclical nature of the industries in which the Company operates and the impact of current adverse economic conditions on those industries, (v) unseasonable weather (warm winters and cool summers) which adversely affects demand for automotive and some industrial batteries, (vi) 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, (vii) competitiveness of the battery markets in the Americas and Europe, (xi) 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, (xii) the ability to acquire goods and services and/or fulfill later needs at budgeted costs, (xiii) general economic conditions, and (xiv) the Company's ability to successfully pass along increased material costs to its customers.
The Company cautions each reader of this press release to carefully consider those factors hereinabove set forth and those factors described in the Company's annual report on Form 10-K filed on June 2, 2010. Such factors and statements 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. We undertake no obligation to update any forward-looking statements in this press release.