Wall Street Transcript Interview with John Craig, Chairman, President, CEO and Director at EnerSys (ENS)

Wall Street Transcript

67 WALL STREET, New York - November 27, 2013 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Defense Budget Uncertainty - Capital Equipment Technology Investing - Growth Opportunities in Data Security - International Consumption Growth - Professional Security Equipment

Companies include: EnerSys (ENS) and many more.

In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, the Chairman, President, CEO and Director of EnerSys (ENS) shares his company strategy and the outlook for this vital industry:

TWST: You completed acquisitions of Purcell and Quallion recently. Can you tell us about your decision to buy those companies and the value they are adding so far?

Mr. Craig: Let's take Purcell first. One of the things that we look at is that the battery industry in total, which is about $100 billion in size, and we are about $2.3 billion. When you look at the balance of the market there are a lot of low-margin segments that we choose not to compete in, and they are highly competitive.

As an example, when you look at selling car batteries to the OEMs, that is not a business that we believe we can make good returns for our shareholders. So we are looking for those segments within the battery markets that have good returns.

We also have a very strong marketing and distribution network worldwide for industrial batteries. If we could find other product types that we could bring into our product portfolio that would make good returns to shareholders then we would consider those. That brought us to Purcell, which is a cabinet company, and the cabinets that they manufacture hold electronics equipment and batteries. Specifically, it's heavily geared toward the telecommunications market, some to UPS market, and we also can expand into the railroad market where we do business today, and possibly even in the military business.

Purcell's sales are primarily in the United States. With our worldwide distribution networks, we see some major opportunities to expand outside of the U.S. The other part to it is with our service organization and installation group, Purcell in the past would hire third parties to do the installation.

With our service group that we have in our reserve power segment, we can do that work, so there are synergies there, global expansions there. We're very excited about this opportunity, because the other thing is customers are looking for more of a...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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