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Technology Stocks : EXide -breakthrough battery tech?
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To: John M Connolly who wrote (3)9/27/1999 7:43:00 PM
From: Bob A Louie  Read Replies (1) of 10
 
Although I can't swear to it, I doubt they're related. Here's something on Lutz from Business Week.

Can Bob Lutz Recharge Exide?
Abstracted from Business Week 03/08/99

Exide Corp (Ann Arbor, MI) will have 1999 revenues of $2.4 bil. Former Chrysler Corp vice-chairman Robert A Lutz become Exide's CEO. Exide gained 36% of the world auto battery business in the 1990s, mostly through acquisitions that left the company with $1.3 bil in debt and $100 mil/year in interest payments. Exide will announce a loss of $22 mil in the year ending 3/31/99, according to Darren S Kimball of Merrill Lynch & Co. The company had a profit of $18.6 mil in the previous year. Lutz will have to write off bad investments and sell some businesses to pay down the debt. Exide also faces a court case in Florida charging that it sold used batteries as new. Exide is losing money on its contract to supply DieHard batteries to Sears Roebuck & Co, a contract that accounts for 15% of Exide's North American sales.
Lutz has a 3-year contract at Exide. He has 1.8 mil Exide stock options at $10 apiece. The stock is now at 16. Lutz will also still deal with Chrysler, which is Exide's biggest customer among the US automakers. Lutz will have to do something to boost profits. This could include reducing emphasis on the $30 batteries sold via outlets such as Kmart Corp and Pep Boys, with more emphasis on the $80 Nascar Select batteries.
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