EnerSys Inc. (EnerSys) has reported net sales of $460.9 million for the third quarter of fiscal 2009, down 17%, compared with the net sales of $553.4 million in the year-ago quarter. It has also reported net earnings of $30.6 million, or $0.63 per diluted share, for the third quarter of fiscal 2009, compared with the net earnings of $16 million, or $0.33 per diluted share, in the year-ago quarter.

The third fiscal quarter of 2009 diluted EPS results significantly exceeded the guidance as previously provided on November 5, 2008 of $0.40 to $0.44 per share. The higher performance was due in part to a combination of cost control and selling price management. In addition, the net favorable impact from foreign currency movements in the quarter was about $0.10 per share higher than anticipated, when the earnings guidance was provided. This higher than expected currency benefit was due in large part to the unprecedented volatility in global currency markets during the third fiscal quarter.

The company’s third quarter sales decline includes about 8% due to weaker foreign currencies, primarily the euro compared to the US dollar. Organic sales volume declined about 10% as the company experienced the effects of the ongoing decline in global economic activity. Partially offsetting the decline were ongoing selling price recovery actions which contributed about 1%.

The Reserve Power total operating earnings increased 57% in the third fiscal quarter of 2009 in comparison with the prior year quarter. A decline in organic volume was more than offset by lower lead costs and improved pricing. Motive Power total operating earnings remained relatively flat in the third fiscal quarter of 2009 in comparison with the prior year quarter as lower volume and moderately lower pricing was offset by the decline in lead costs.

Net earnings for the nine fiscal months of 2009 were up 102% and, on a non-GAAP adjusted basis, were up 66% when compared to the comparable prior year amounts. Please refer to the section included herein under the heading Reconciliation of Non-GAAP Adjusted Financial Measures for a discussion of the company’s use of non-GAAP adjusted financial information.

Net earnings for the nine fiscal months of 2009 were $81.3 million or $1.63 per diluted share. The nine fiscal months of 2009’s net earnings included the following highlighted items which increased net earnings by $0.6 million, or $0.01 per diluted share: a gain of about $8.5 million, $11.3 million pre-tax, or $0.17 per diluted share, from the sale of the company’s Manchester, England manufacturing facility and other property; a charge of about $2.2 million, $3.4 million pre-tax, or $0.04 per diluted share, from an accrual of a court assessment against the company; costs of about $2.1 million, $3.2 million pre-tax, or $0.04 per diluted share, from the company’s ongoing European restructuring actions; charges of about $3.4 million, $5.2 million pre-tax, or $0.07 per diluted share, from the company’s first fiscal quarter’s refinancing activities; and costs associated with a secondary offering of the company’s common stock held by certain of its shareholders of $0.2 million, $0.3 million pretax, or $0.01 per diluted share. Excluding these highlighted items, non-GAAP adjusted earnings for the nine fiscal months of 2009 were $80.7 million or $1.62 per diluted share.

Net earnings for the nine fiscal months of 2008 were $40.2 million or $0.83 per diluted share, included an unfavorable $0.17 per share impact from the $8.0 million, $11.4 million pre-tax, of the European restructuring and $0.3 million, $0.4 million pre-tax, unfavorable impact of professional fees related to a secondary offering. Excluding the highlighted charges, non-GAAP adjusted net earnings for the nine fiscal months of 2008 were $48.5 million or $1.00 per diluted share.

Net sales for the nine fiscal months of 2009 were $1.58 billion compared to $1.44 billion in the prior year, or an increase of 9%. The company’s nine month growth rate includes about 9% attributable to price recovery actions, 2% due to stronger average foreign currencies, primarily the euro compared to the US dollar, partially offset by a 2% decline in organic sales volume.

Our earnings for the third quarter were a record with diluted earnings per share of $0.63, stated John D. Craig, chairman, president and chief executive officer. As we noted during our call last August we anticipated reduced demand for certain of our products and services, as a result of global economic conditions, and we have since taken numerous steps to address this downturn head on. Our third quarter results reflect some of the benefits of those actions with the remainder to be experienced in future periods. We view this as a time for us to continue to further consolidate operations and undertake additional restructuring of our business. For example, we plan to restructure our Italian operations with the closure of our manufacturing facility there and shifting this production to lower cost facilities. We will be opening a new distribution center to continue to provide responsive service to our customers in that market. We believe that these additional actions, in addition to other actions that are being taken, will have a favorable pre-tax earnings impact of $13 million or $0.19 per share on an annualized basis when fully implemented. In addition, with our strong balance sheet, that includes short term investments of about $91 million and has over $200 million in available credit, we believe that we have the financial resources to weather this economic downturn and that we have the capital available to remain active in pursuing further acquisition opportunities. In short, we believe EnerSys will emerge from this economic downturn a leaner and stronger company

Craig continued, In spite of the challenging economic conditions, for the fourth fiscal quarter of 2009 we expect adjusted diluted net earnings per share of between $0.30 and $0.34. This excludes the expected pre-tax $17.5 million or $0.25 per share charge in the quarter from all of our restructuring actions, the benefits of which we will experience in future periods.