Exide Files For Reorganization

[Rick D]

Oh oh. Looks like a quick ReOrg but still gets your attention:

http://www.boatingindustry.com/news/2013/06/10/battery-maker-exide-files-for-bankruptcy/

 

[jackhartjr]

The article says, "The Chapter 11 filing was caused mainly by losing a major contract to supply batteries to Wal-Mart that cost the company $160 million a year, the company said."
That's pretty good if you think about it, that means you lose money by not making batteries! Must be this new economy!
Jack

 

[Fly_H23]

The article says, "The Chapter 11 filing was caused mainly by losing a major contract to supply batteries to Wal-Mart that cost the company $160 million a year, the company said."
That's pretty good if you think about it, that means you lose money by not making batteries! Must be this new economy!
Jack

Losing a big account like Walmart hurt their sales which means they can't pay employees or keep the lights on. You don't make products if someone isn't buying them.

I have had good performance from the new batteries that Walmart stocks now made by Johnson Controls.

 

[Chris Patterson]

They can make up the difference in volume.

I DO hate it for Exide though, they make a fine battery IMO.

 

[StinkBug]

How are they going to make up the difference in volume when they just lost one of their biggest retail contracts? It's hard to sell more of something, when fewer of your product are on the shelves, and more of the competitors are in their place.

Every store that sells automotive (and marine) batteries carries a certain brand. Many of those brands are made by the same companies. More and more of those private labels are being made by Johnson Controls, and not Exide. Losing Wal-Mart to JC is a HUGE blow to Exide, and unless they can somehow get one or more of the big auto parts store chains to switch to them they are going to have to cut back somewhere.

 

[Chris Patterson]

9% of everything I say is serious. Maybe 8. The wife says 3. Most here think 2%.

And that small percentage is plagiarisation.

 

[StinkBug]

Hahahaha! Guess I'll take note of that for the future.