EnerSys Revenue Slips as Industrial Mobility Faces Pressure

The battery manufacturer reported net income of $89.6 million, or $2.42 a share, compared with $68.4 million, or $1.80 a share, a year earlier. Excluding certain one-time items, adjusted earnings were $3.22 a share, above the $3.19 analysts expected, according to FactSet.

Precision power solutions sales rose more than 20%, driven by demand for soldier power and munitions, Chief Executive Shawn O’Connell said. That growth helped offset pressure in material handling, which is part of the industrial mobility business. The unit supplies energy storage and power electronics for industrial vehicles.

Chief Financial Officer Andrea Funk said EnerSys expects pressure on industrial mobility as its transportation business outpaces higher-margin growth in material handling. For the fiscal third quarter, the company forecast revenue of $935 million to $975 million and adjusted earnings of $3.05 to $3.15 a share. Analysts expect $968.3 million in revenue and adjusted earnings of $3.10 a share.

EnerSys said in October that it had agreed to acquire battery company Ultralife. O’Connell said Wednesday the deal would expand EnerSys’ portfolio of advanced power solutions. The transaction is awaiting regulatory approval, and the companies continue to operate separately.