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WIKI ANALYSIS
ENERSYS is the world’s largest manufacturer, marketer and distributor of industrial batteries. It also markets related products such as chargers, and battery accessories. The company distributes its products in more than 100 countries primarily in the Americas, Europe, and Asia. In 2010 approximately 60% of its sales were outside of the United States.[1]
Business Growth
For fiscal 2011 (ending March 31, 2011) ENERSYS reported sales of $2 billion, which was a 24.4% increase from the previous year, due primarily to increases in organic volume.[1]
During fiscal 2010 and 2011 the company made a number of strategic acquisitions. Most notably Accu Holding AG and ABSL Power Solutions Ltd..[1]
Trends and Forces
ENERSYS's global presence exposes the company to significant pricing pressures
With a presence across such a wide industry and global presence pricing pressure have continued to mount due to industry consolidation and country specific influences. For instance, the company is facing increasing pressure from Chinese competitors. In China they are able to employ labor at significantly lower costs than producers in the U.S. and Western Europe and as those companies expand they are becoming difficult for ENERSYS to compete with.[1]
Its global presence also exposes it to country specific risks and foreign currency fluctuations
The company’s most important commodity and Currency, lead and the Euro (EUR) continue to fluctuate making profit difficult to predict. From fiscal 2010 to 2011 increases in the cost of lead resulted in an increase of $112 million in overall cost of goods.
Additionally, the company manufactures products in countries such as China, France, Mexico, Poland, and the United States (as well as many others). This broad exposure keeps the company affected by the strength of local currency and continues to affect operations.[1]
Competitors
The industrial battery market is highly competitive, ranging from small development stage companies to large international corporations. Some of the company's competitors include:.[1]
- Exide Technologies (XIDE)
- East Penn Manufacturing
- FIAMM
- GS-Yuasa
References
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