EnerSys to Cut Jobs

EnerSys  is a name that the majority of your are likely to be less than familiar with, after all they are not exactly a household name. That is why before we talk about the job cuts coming to the company we are going to begin by looking at how the choose to describe themselves, “Our vision at EnerSys is to be the global leader in our chosen markets for stored energy solutions by providing extraordinary CUSTOMER service and meeting or exceeding our CUSTOMERS’ expectations 100% of the time. We shall be the best in the industry by being easy to do business with, while supplying the highest quality products and services on time and in the most cost-effective manner. We will do this in a culture that demonstrates respect for our CUSTOMERS, our fellow associates, our suppliers and our communities while focusing upon maximizing shareholder value.”

Sadly the company is getting ready to cut back on about 100 jobs at their Warrensburg facility, triggering a mass layoff action under the current federal guidelines. For those of you who are not familiar with the idea of a mass layoff action here is a look at how the company chooses to describe itself, “The Mass Layoff Statistics (MLS) program collects reports on mass layoff actions that result in workers being separated from their jobs. Monthly mass layoff numbers are from establishments which have at least 50 initial claims for unemployment insurance (UI) filed against them during a 5-week period. Extended mass layoff numbers (issued quarterly) are from a subset of such establishments—where private sector nonfarm employers indicate that 50 or more workers were separated from their jobs for at least 31 days.” The only good news is that under the terms of a mass layoff action the company has to give the workers several weeks of notice before they are put out of a job.

The company, in its most recent release, out its second quarter results, that may give you some insight into the reason behind the job cuts, “EnerSys (NYSE: ENS) the global leader in stored energy solutions for industrial applications, announced today results for its second quarter of fiscal 2013, which ended on September 30, 2012.  Net earnings attributable to EnerSys stockholders (“Net earnings”) for the second quarter of fiscal 2013 were $43.8 million, or $0.90 per diluted share, including an unfavorable net of tax impact of $0.02 per share from a charge of $1.0 million for restructuring plans. The net earnings of $0.90 per diluted share, compares to diluted net earnings per share of $0.57 for the second quarter of fiscal 2012, which included an unfavorable net of tax impact of $0.01 per share from a charge of $0.7 million for restructuring plans and $0.4 million for fees related to acquisition activities, partially offset by a $0.6 million legal settlement income… Net sales for the second quarter of fiscal 2013 were a second quarter record $554.2 million, an increase of 1% from the prior year second quarter net sales of $547.2 million. The 1% increase was the result of a 2% increase in organic volume, 4% increase from acquisitions, a 4% decrease from foreign currency translation impact and a 1% decrease due to pricing. Sequential quarterly sales decreased 7% from the first quarter of fiscal 2013 net sales of $593.9 million due to a 6% decrease in organic volume and a 1% decrease due to pricing.”