Exide Files for Bankruptcy

[zzyzzx]

http://dealbook.nytimes.com/2013/06/10/e...er=yahoofinance

The company will continue to operate normally while in Chapter 11, and has secured $500 million in financing.

In a court filing, the company cited the price of scrap lead in North America, which accounts for 40 percent of its costs of goods sold. It has also grappled with intense competition from its primary rival, Johnson Controls, which poached Wal-Mart Stores as an exclusive customer.

 

[dparm]

You could say that's not too...positive....

 

[TechnoLoGs]

Originally Posted By: zzyzzx
http://dealbook.nytimes.com/2013/06/10/e...er=yahoofinance

The company will continue to operate normally while in Chapter 11, and has secured $500 million in financing.

In a court filing, the company cited the price of scrap lead in North America, which accounts for 40 percent of its costs of goods sold. It has also grappled with intense competition from its primary rival, Johnson Controls, which poached Wal-Mart Stores as an exclusive customer.



Most people arent all ga-ga over Exide.

JCI making Walmart batteries.. Some feel they are cheaper than the Autocraft Silvers at AAP, quality-wise.

The last Walmart battery I had.. failed abysmally fast.

So, if Exide will continue to operate normally.. Does this even mean anything?

 

[zzyzzx]

Originally Posted By: TechnoLoGs
So, if Exide will continue to operate normally.. Does this even mean anything?


It means that their shareholders and creditors lose money.

 

[229]

Does that just leave a couple of battery companies?

 

[dparm]

Originally Posted By: 229
Does that just leave a couple of battery companies?


Exide is not disappearing. They are reorganizing.

 

[michaelluscher]

MY PRORATED WARRANTY!
Also, the Strauss store I bought it from turned into a AAP.

No warranty for me

 

[SubLGT]

more info here:

http://exiderestructures.com

 

[L_Sludger]

too bad they didn't file chapter 7 and have everybody involved commit seppuku. they've long been the scourge of the battery industry.

 

[Virtuoso]

Menards sells them.

I'm always amused at the amount of returned batteries they have behind the customer service counter..

 

[daves87rs]

Originally Posted By: Virtuoso
Menards sells them.

I'm always amused at the amount of returned batteries they have behind the customer service counter..


That's good to know....

 

[dparm]

Originally Posted By: L_Sludger
they've long been the scourge of the battery industry.



Why's that? Honestly I don't know much about them.

 

[eljefino]

If you can't buffer materials costs into your final product and make a profit you've got mental midgets running your ship.

We had a logging trucker quit the business in a media spectacle here, having his trucks repo'd in front of the State House b/c he couldn't afford diesel fuel as an independent contractor. Really? Jack up your rates or move over and let someone else do it.

JCI faces the same lead costs and manages to make a nickel...

 

[Kruse]

Originally Posted By: dparm
Originally Posted By: L_Sludger
they've long been the scourge of the battery industry.



Why's that? Honestly I don't know much about them.


It seems that their batteries always "sweat" or "leak" acid out the top. I currently have two Exide batteries in service and they both do it also. I bought them because I was in a pinch on a Sunday afternoon.

 

[threeputtpar]

Originally Posted By: dparm
Originally Posted By: 229
Does that just leave a couple of battery companies?


Exide is not disappearing. They are reorganizing.


Yes, that is correct but the fact that they have been performing bad enough that they are into Chapter 11 says that the writing is on the wall. Maybe if there is enough cash thrown at the problem and they can get back the sales they lost to JCI from WalMart, they might be able to turn it around. Or they can drastically cut overhead costs as a short-term stop-gap until the sales start to rebound. But if there staple raw material costs is 40% of the total COGS, their labor and burden would have to be pretty low for them to have a chance.

I'm helping my former employer through Chapter 11, and they are not willing to make the necessary changes to right the ship so Chapter 7 is only a matter of time.

 

[229]

"It seems that their batteries always "sweat" or "leak" acid out the top. I currently have two Exide batteries in service and they both do it also. I bought them because I was in a pinch on a Sunday afternoon."[/quote]

Glue a penny between each terminal and vent cap. The pennies will act like sacrificial anodes and protect your battery terminals.

 

[andyd]

I had a bad experience with Exide 20 yrs ago. I won't knowingly buy another one.

 

[antiqueshell]

I agree MORE companies making a product creates competition and that can only be good for the customer and quality.

I hope they stay afloat and turn things around.

 

[tbm3fan]

Maybe someone from India or China will buy them out...