EnerSys's CEO John Craig

EnerSys is expanding its manufacturing facility in Warrensburg, Missouri, increasing its production capacity by 50% to meet demand from premium automotive, telecommunications, aerospace, defense and other industrial users.

The plant expansion will take place over a two-year period, increasing the plant's area from 365,000sqft (33,910m²) to 500,000sqft (46,451m²). It will also create about 180 jobs in the local Warrensburg area.

Net sales for EnerSys's third fiscal quarter of 2008 were USD553.4 million, compared to USD377.9 million in the same period of the prior year. Net earnings were USD11 million compared to USD9 million for the third fiscal quarter of the previous year.

"We continue to experience record sales and operating earnings in our third fiscal quarter as a result of strong demand for our products and services," John Craig, EnerSys's CEO, says in a statement.

"Our pricing recovery efforts to offset increased commodity costs, especially lead, remain a primary focus of our organisation, coupled with our on-going cost reduction efforts," he says, adding that it will take time for EnerSys's pricing recovery efforts to fully offset increased costs.

EnerSys estimates its third quarter lead costs have increased about USD79 million - or 106% more than the third quarter of the previous year.

Craig said in a conference call last week that many of EnerSys's competitors were also affected by higher lead costs.

"I think many of our competitors are hurting and they're in worse shape than we are."