EnerSys (ticker: ENS, exchange: New York Stock Exchange (.N))
News Release -
EnerSys Awarded Production Contract by US Navy for Nuclear Submarine Batteries
READING, Pa., Feb. 4 /PRNewswire-FirstCall/ -- EnerSys (NYSE: ENS), the
world's largest manufacturer, marketer, and distributor of industrial
batteries, recently announced that its EnerSys Energy Products Inc. subsidiary
has received an initial contract award from the US Navy to produce valve
regulated lead acid (VRLA) batteries using its proprietary thin plate pure
lead (TPPL) technology. This award represents 100% of the US Navy's
requirement under their 2007 solicitation for VRLA submarine batteries in
continuation of their effort to retrofit the entire nuclear submarine fleet
with VRLA batteries in place of the legacy flooded lead-acid batteries. This
is the successful culmination of a multi-million dollar multi-year cost shared
partnership between EnerSys and the US Navy. EnerSys will produce the
submarine battery at the company's highly automated facility in Warrensburg,
"Our TPPL technology will enable each submarine to achieve longer run
times than the specification requires while enabling the substantial reduction
in battery maintenance that motivated the US Navy to start the conversion of
its entire nuclear submarine fleet to VRLA batteries," said John Craig,
chairman, president and CEO of EnerSys. "We plan to leverage this success with
the US Navy to convert submarine batteries for other navies around the world
to our TPPL technology, thus strengthening our over 75 year role as a global
submarine battery supplier," he added.
Senator Kit Bond (R, MO), who has supported and encouraged EnerSys'
development efforts noted, "We are proud that a Missouri-based facility is
producing such advanced batteries for the US Navy submarine program, which is
so crucial to national security and US maritime supremacy. The factory has
been a provider of world-class batteries for all branches of the US military
for the last decade."
Sanjay Deshpande, EnerSys vice president of aerospace and defense,
remarked, "This is the first of hopefully many contracts as the US Navy
converts its fleet of approximately 70 nuclear submarines to VRLA batteries.
EnerSys is qualified to supply batteries to all four classes of US Navy
submarines. The production contract acknowledges the improvements in both
product and process design achieved during our development partnership with
the US Navy."
Caution Concerning Forward-Looking Statements
This press release (and oral statements made regarding the subjects of
this release) contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements may include, but are not limited to, (i) statements regarding
EnerSys' plans, objectives, expectations and intentions and other statements
contained in this press release that are not historical facts, including
statements identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," "will" or words of similar meaning;
and (ii) statements about the benefits of the submarine contract including any
impact on our financial and operating results and estimates, and any impact on
EnerSys' market position that may be realized from this contract award.
These forward-looking statements are based upon management's current
beliefs or expectations and are inherently subject to significant business,
economic, and competitive uncertainties and contingencies many of which are
beyond our control. The following factor, among others, could cause actual
results to differ materially from those described in the forward-looking
statements. The possibility that EnerSys may not realize revenue benefits
from the contract award within expected time frames. EnerSys does not
undertake any obligation to update any forward-looking statement to reflect
circumstances or events that occur after the date such forward-looking
statement is made. For a list of other factors, which could affect EnerSys'
results, see EnerSys' filings with the Securities and Exchange Commission,
including "Item 1A. Risk Factors," set forth in our EnerSys' Annual Report on
Form 10-K for the fiscal year ended March 31, 2007.
For more information, contact Richard Zuidema, executive vice president,
EnerSys, P.O. Box 14145, Reading, PA 19612-4145, USA. Tel: 800-538-3627;
About EnerSys: EnerSys, the world leader in stored energy solutions for
industrial applications, manufactures and distributes reserve power and motive
power batteries, chargers, power equipment, and battery accessories to
customers worldwide. Motive power batteries are utilized in electric forklift
trucks and other commercial electric powered vehicles. Reserve power
batteries are used in the telecommunication and utility industries,
uninterruptible power supplies, and numerous applications requiring standby
power. The company also provides aftermarket and customer support services to
its customers from over 100 countries through its sales and manufacturing
locations around the world.
More information regarding EnerSys can be found at http://www.enersys.com.
executive vice president of EnerSys