Good day, ladies and gentlemen, and welcome to the EnerSys Second Quarter Fiscal Year 2015 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, John Craig, Chairman and CEO of EnerSys.

Thank you, Noah. Good morning, and thank you for joining us this morning. Last night, we posted on our website, slides that we're going to reference during the call this morning. So if you didn't get a chance to see this information, you may want to go to our Investor Relations tab on our website at www.enersys.com. Now before we get into the details of our second quarter results, I'm going to ask Mike Schmidtlein, our Chief Financial Officer, to cover information regarding forward-looking statements. Mike?

Thank you, John, and good morning to everyone. As a reminder, we will be presenting certain forward-looking statements on this call that are based on management's current expectations and are subject to uncertainties and changes in circumstances. Our actual results may differ materially from the forward-looking statements for a number of reasons. Our forward-looking statements are based on management's current views regarding future events and operating performance, and are applicable only as of the dates of such statements. For a list of factors which could affect our future results, including our earnings estimates, see forward-looking statements included in Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations set forth in our quarterly report on Form 10-Q for the fiscal quarter ended September 28, 2014, which was filed with the U.S. Securities and Exchange Commission. In addition, we will also be presenting certain non-GAAP financial measures. For an explanation of the differences between the comparable GAAP financial information and the non-GAAP information, please see our company's Form 8-K, which includes our press release dated November 5, 2014, which is located on our website at www.enersys.com. Now, let me turn it back to you, John.

Thank you, Mike. If you would please refer to Slide 3 and you will notice that we reported second quarter results -- of 25.8% [ph] , adjusted operating earnings of $74 million, and adjusted earnings per share of $1.06, which exceeded our guidance of $1 to $1.04 per share. Our sales for the quarter were up 11% at $630 million, and year-over-year our earnings per share were up $0.19 or 22%. The results of our second quarter are even more impressive when you consider, first, our sales volume is normally lower in the second quarter compared to our first quarter due to summer vacation seasons in Europe and United States. Excluding the effects of foreign exchange, our sequential sales volume was up 1%. Second, year-over-year, our organic sales volume was up 7%. And third, we executed this record quarter in spite of one of our Americas telecommunications customers significantly lowering spending on batteries and enclosures. I now want to focus on our current business activities in third quarter guidance. Both our incoming order rates and order backlog remain strong. In motor power, the 3-month electric fork truck orders for July through September are up 13% globally, compared to the same period of last year. In reserve power, we continued to see sizable communication orders for replacement and 4G in our Europe, Middle East and African region. Global orders for our premium thin plate pure lead products continued to be strong and based on this information, our earnings per share guidance for the third quarter is between $1.04 to $1.08. Should we achieve the high end of our third quarter guidance, it will be a record earnings for any third quarter in the company's history. Our third quarter guidance does not include any increase of spending by the large telecommunication customer…

Thanks, John. For those of you following along on our webcast, I am starting with Slide 4. Our second quarter net sales increased 11% over the prior year to $630 million from a 7% increase in organic volume and a 6% increase from acquisitions, plus a 2% decline in currency translation. On a regional basis, our second quarter net sales in the Americas were up 16% to $333 million, while Europe's increased 4% to $233 million, and Asia increased 10% in the second quarter to $63 million. In the Americas, 10% was from organic volume, 8% was from acquisitions, while pricing and currency translation declined by 1% each. Europe had a 6% increase in organic volume and a 1% increase in pricing, less 3% in currency translation. In Asia, organic volume was down 9%, while pricing was up 2% from walking away from lower margin business in China, and acquisitions contributed 17%. On a product line basis, net sales for motive power were up 9% to $314 million, while reserve power increased 13% to $316 million. Motive power had a 7% volume gain, 1% pricing gain, and a 3% gain from acquisitions, less 2% from currency translation. Reserve power attained 9% from acquisitions and 6% from organic volume, less 2% from currency translation and 1% from lower pricing. Please now refer to Slide 5. On a sequential quarterly basis, second quarter net sales were down 1% to the first quarter due to 2% lower currency translation, net of 1% volume growth. The Americas region was up 1%, and Asia was up 4%, while Europe decreased 4%. On a product line basis, motive power was down 3%, driven primarily by Europe, but reserve power was up 1%. Since our second quarter is usually our weakest sales quarter, it is not unusual…

Thanks, Mike. At this stage, I'd like to open the lines up for questions.

[Operator Instructions] Our first question comes from the line of Michael Gallo of CL King. Michael W. Gallo - CL King & Associates, Inc., Research Division: Question, John, on Purcell. Obviously, it's been below certainly where you thought it would be when you did the acquisition. Does anything change in your thinking or surprises beyond the delay in the customer? And then how dilutive is it in the quarter? I think, you would have expected it would have been accretive at this point.

If you look at the 3 acquisitions in total, year-to-date, they're modestly accretive. And if you go back and you look at what we said when we bought these 3 acquisitions, that we should be in the zip code of $0.18 to $0.21 accretive for the full year, which we're not going to get that. Now let me go back, and I'm going to tell you when we buy a company -- Purcell, which is the big driver, at the time we looked at it, during our due diligence, we said, one major flaw that we see with this is that it's tied to very few customers, and it's mainly the United States telecommunications business is where all the business was coming from. This one major customer that we referred to earlier was about 50% or about half of the business with Purcell. That obviously, is a red flag. That was an issue when we bought it. At the time that we bought it though, what we said was, this is a gold mine to get this thing globally -- to get the thing overseas. Because at day one, we started quoting and had training for our sales people on how to sell enclosures. If you look today, our quote activity is north of a couple of hundred million dollars. It's very exciting what we're seeing happening there. But that's quote activity; it's not turned to orders yet. What's happened with it, with the one major customer going away, sorry, slowing up on spending, it has hurt our last few quarters, and it's going to hurt this fiscal year. We believe -- but we don't know factually, we believe that, that customer will start spending capital again, and we hope that happens in the near future, but we don't exactly…

Well, I think, the first thing you said, Michael, is starting off a strong second quarter. Let's back up a little bit, go back to our first quarter. We came in at the low end of our guidance at $1.02. And at that point in time, I said the reason in part that we're at the low end of our guidance is because we have some orders that pushed out of Q1 into Q2, and we expected to have a stronger Q2 than normal -- and which we have, coming in at $1.06. It's very rare that we would see higher earnings in the second quarter as compared to the first quarter. So the comp, when you start looking at third quarter and compare it to second quarter, the second quarter comp is higher than normal. Now that being said, when you take a look at where we should be, we should be much higher than $1.06. I think we ought to be in the $1.20 to $1.25 range. So why aren't we there? And the reason really comes back to that one major customer in the U.S.; it's not only enclosure business that's been hit, it's also the battery business. They have virtually cut back on CapEx spending for whatever reason, and we hope that turns back on. But I can tell you, if we were running at normal rates with that 1 customer, we would be north of $1.20 share in guidance. That's the big hit that we're really seeing take place in third quarter when you compare it second to third quarter. Michael W. Gallo - CL King & Associates, Inc., Research Division: Okay, great. And then just final question. Obviously, seeing lead really reverse here from where it was. I think it was pushing $1.05 coming out of your second quarter and sort of south of $0.90, I think this morning when I looked on the LME, When should we start to see those lower lead costs again, start to filter through? Is that probably still the first quarter next year, if -- assuming they stay down here, we start to see that in the fourth quarter?

Fourth quarter. Fourth quarter we should start to see it. If things stay where they are right now, our lead cost fourth quarter, compared to the third quarter would conservatively be flat, but we actually think that the lead cost will be less in the fourth quarter. And by the way, you may have read that we do have hedges out there that are offset a little bit where the LME is. I'm taking those in account when I make that statement. Michael W. Gallo - CL King & Associates, Inc., Research Division: Right, but then at some point, as you roll those off and I presume you roll new ones on as you typically do forward at the lower pricing. By the first quarter, you should really see the full impact assuming lead prices stay down here.

If lead prices -- if your assumption is correct, Michael, I will agree with your comment. We'll have to see where the market goes, but if it stays down at the $0.90 range, yes, it should be a nice pick up for Q1 and it should be a pick up for Q4.

Our next question comes from the line of William Bremer of Maxim Group.

Let's touch base on the EU and China. Could you give us a little bit -- little more granular color of what you're seeing currently there in terms of their build-outs or are things sort of moderating back in the EU?

Would you read all the stuff in the newspaper about what's going on in the EU and the concern, fortunately, our numbers don't really reflect what you read in the newspaper. In fact, when you take a look at our motor power business -- well, total business, as we mentioned earlier, is up about 4% in Europe, Middle East and Africa. And when you look at the motive power business, its down just a little bit, basically flat. You look at the reserve power business, it is really up. I mean, it's up double digits for us. And the primary reason for that is that we're seeing build-outs taking place in the Middle East and Africa. We're also seeing replacement business, which has picked up and we're also starting to see 4G. Now, one of the things I want to emphasize on 4G, we are starting to see it. We believe that looking forward, that what you're going to see is more upside in the 4G as it really starts to take off. We're just at the beginning of the deployment of 4G in Europe today. So I think there's going to be some upside there. Now when you look, your next question was about the Asia market. With the exception of China, I think things are going pretty well. China for us is not going as well as we would like to see it. And when you look again at the volume in Q2, compared to Q2 last year, total volume is down 9%. And when you look at where that is, that is down in reserve power, but motive power in the Asia market force is going tremendous right now. It's really going well. But it's not offsetting the total in the reserve power. Now what's the problem with reserve power? The problem with reserve power in China is the telecommunications industry are deploying 4G right now, and the price they're willing to pay for batteries is very low. And we've walked away from a lot of that business. So what we have to look at is doing a competitive analysis and looking at the other battery manufacturers. If you compare our battery to their battery, our battery will outperform their battery, but the reality is the market is not willing to pay for that. So we need to come out with a product that performs more like what the market will buy, and put that product in place to go after that telecom in China. Now, keep in mind, I'm not saying that we lower our prices and keep our costs the same. I'm saying we lower our pricing and lower the cost and increase the margins on the business. That's one of the action plans that we have in place moving forward for the China market.

And the timing on that, John, for a new product launch?

We're probably looking about 6 months. It's not going to happen overnight.

Agreed. Okay. Let's touch base -- I know military defense is quite small, but given what the environment is like now, are you seeing a pickup?

Well, we really are. We're actually selling more blocks this year than we did last year, surprisingly enough, and I say blocks of batteries for tactical vehicles. But as Mike alluded to, or stated in his opening comments, when you take a look at the Americas, the operating earnings percent, which was at 15.3% last year in the second quarter, down to 12.9%, one of the big reasons for that drop was the pricing drop with the batteries for tactical vehicles. What the military has done is they have another source that they brought in and that other source had a much lower price on their batteries, we had to come down. Volume is up, pricing is down, net-net, obviously, we would like to see the higher price that we had, but we weren't able to hold those prices long-term. And Bill, you followed the company for a lot of years. And I stated this many, many years ago, 2 to 3 years ago, that the sustained 15% in the Americas is going to be darn tough to do. Okay. There comes a point where you can't push it higher. And what we said at the time, the way to offset that is we've got to get Europe turned around, we've got to get Europe north of 10%. So when you look in this quarter, last year at 15.3% in the America's, this year 12.9% in the Americas operating earnings, but then you look at Europe, 6.8% last year, 11.2% this year. Net-net, last year second quarter our operating earnings percentage was 11.1%, this year it's 11.7%. Now that being said, we're hoping that we get the Americas back up with some other areas. There are some other products and things that we're working at. Are we happy at 12.9%? No, we're not. Are we going to work to get it back to 15%? Yes, we are. That's going to be a tall task to do that.

Our next question comes from the line of Tim Mulrooney of William Blair.

So you reported 6% organic growth in the reserve business in the quarter. That's a pretty solid number, especially given the fact that the telecom customer you referenced, that spending hasn't really come back. Can you just talk about what did contribute to the strong organic growth in reserve for the second quarter?

Europe. Europe is the big one. And that's what's really jumped up. We don't have the acquisitions in that number, but Europe has come through very strong for us.

Okay. That was easy. And then John, you gave fork truck orders, I think, for -- was that July to September were up 13%? Is that a year-over-year number?

Yes. it is.

Could you give a little bit more detail, maybe walk through what it looks like for the 3 geographies during that time frame?

Yes. I am going to pull the rich [ph] data up here, I don't have it right in front of me. But it will take 2 seconds to get it, I can give you that and we're looking at 3 months. And when you take a look at total of the Americas, it's up 3%. When you look at Europe, it's up 15%. When you look at Asia, it's up 17%. Globally, it's up 13%. Now one thing I'm going to caution you on, in Europe. There is something that's taken place here, that's kind of an anomaly. And you look at the fork truck orders being up that much. What happens is this, that the comps, when you look at -- Europe wasn't buying anything in new fork trucks. I mean it went away off. At point go back to 2008, 2009, the market was down about 50%. So what people were doing, they were cannibalizing fork trucks. In other words if we have 3 fork trucks, we'll take the parts off a third fork truck and run 2. What happened during that period of time, the batteries they were buying, the replacement batteries were very, very high. Now with the fork truck business being up, the new fork truck business, the replacement business has been lowered, okay? Because those batteries are going to new fork trucks. So I don't expect to see the same type of growth, the 17% in Europe. I don't expect to see that in our battery sales. I think it will be lower than that.

Our next question comes from the line of John Franzreb of Sidoti & Company. John Franzreb - Sidoti & Company, Inc.: John, you walked out into my question. I remember the numbers being up substantially starting a year ago in motive Europe. I suspect that the outlook going forward would be flat to modest growth, is that your expectations? And against that backdrop, does it still pay to be so aggressive on pushing though pricing and giving up share?

Well, we are not really giving up share, John. And you'll recall from a couple of years ago, when we started the pricing side, I told our people in Europe, that if you lose 10% market share and get the pricing, the numbers say that you lose a 10%. You also recall, either our last conference call or call before that, our estimate was that we lost about 1%. I think that -- and obviously, I'm not going to go into a lot of details on forward about pricing on the call like this, where you got competitors and customers who're listening at it, but I think what we are going do is the same thing we have done all along. It's where is the optimum point to be on pricing relative to capacity? And we need to continue to analyze that, and make the decisions. And what we've done in the past, we have said, "Hey, the pricing is more important than the volume." And you see the results, it's there. John Franzreb - Sidoti & Company, Inc.: Okay. And it seems to me, if I look at the numbers correctly, that you borrowed to repurchase stock in the quarter? Was that the case, and what lead to that decision?

I'll turn it to Mike. Go ahead, Mike.

Yes, so typically, we would utilize our U.S. credit facility for those -- to borrow that money. Of the cash we have on hand, a large amount of it is not inside the United States, which is pretty normal for a lot of major corporations. So, yes, we did borrow the funds. And we did it because we thought the value of those -- the stock or at least its market price was below the intrinsic value of the company. So the additional $60 million authorization that we announced yesterday, I think is further evidence that we continue to have that belief. John Franzreb - Sidoti & Company, Inc.: Mike, how much of your cash is domiciled overseas?

Let's call it 90-plus percent.

$230 million or the $240 million, I think it is. It's almost all of it. It's a very large percentage. John Franzreb - Sidoti & Company, Inc.: And I guess, Mike, while I have you, could you just walk through the sizeable stock-based comp that you had in the quarter, and how it impacts SG&A going forward?

Okay. So we announced that we accelerated the recognition of the vesting benefits that are in the stock grant plans for our CEO and our Executive Vice President. A little bit of background. Members of the original management buyout team from the 1999, 2000 era, John and Dick are the last 2 of that group. And largely as those members have retired, they've been given vesting on a fresh basis by the compensation committee. The comp committee determined or elected several years ago to formalize that feature in their plans. So grants that are issued, let's say, May of this last year, just 5 months ago, they'll get the proceeds from that 3 years ago. But the plans say that they vest and they have the right to it if they stay for just 1 year, and the logic behind that it is, as you get closer to your retirement age, under the 3-year cliff vesting, the plans become worth less to you if you're not going to be around just because you intend to retire, which hopefully we all one day do. These plans become worthless, so as an incentive to keep executives here through their full retirement date, that acceleration feature was there. Now given the ages of the 2 participants, it kind of came to the point, years ago, or when it was first introduced, it really didn't seem to make much difference, because we were talking about events that were many, many years out. You fast-forward 4 years later and you say, now is the time to recognize that. So we've accelerated and we've caught up for all the grants, the last 2 years worth of grants, so there's 3 grant years out there. We fully expensed in this quarter all the grants that were issued…

Well, first off, I didn't try to do, say anything about fourth quarter at all, because as you know, John, we want to go out 1 quarter, and that's third quarter and we talk about that. Now I'll go a little bit further than that and say that historically, our fourth quarter is always our strong quarter, or usually our strongest quarter. So whether that trend repeats itself this year or not, we'll have to see. Personally, my belief is it will. History states. History will repeat itself here. Regarding that one major customer, I can't speak to when they're going to come back. I don't know. We really don't know. All they've said, is that they will spend their capital this year, and they've implied it will come back. But I think, and you noticed for a lot of years, we tend to be very conservative on what we do here. And if we're going to have a surprise on this, I want to have a pleasant surprise that it came back. In our forecast, we're not putting any major upside into it with that 1 particular customer.

[Operator Instructions] And our next question comes from the line of Sven Eenmaa of Stifel. Sven Eenmaa - Stifel, Nicolaus & Company, Incorporated, Research Division: Just couple of quick questions. First, I mean, you guys had a very strong organic growth in Europe and Americas this quarter. In terms of the -- and that obviously, does not include that 1 telecom customer. What are your expectations in terms of year-over-year organic growth for the next quarter?

I would say that the comps, if we are comparing year-over-year for Q3, Q3 of last year was a very good quarter. So I would say that you're going to see pretty comparable results on an organic basis year-over-year. Sven Eenmaa - Stifel, Nicolaus & Company, Incorporated, Research Division: Got it. And I guess, only headwind there was -- Asia was very strong, right -- last year, so that will be a negative number in organic terms. Is that the fair way to think about it?

Yes. We did Asia, more specifically I believe Japan was very good about this point in time a year ago. It's going to be -- Asia will be down a little bit from -- exchange rates are going to be putting pressure on us, which we try to distill those out, because they're mostly noise. Because they affect both revenue and expenses and the net impacts only on your earnings. But I would say broadly, if you think about it, we're guiding to a midpoint of $1.06, we had a second quarter of $1.06, the third quarter of a year ago was $1.07 with more favorable currency set-up. so I'm going to say broadly you're looking at a fairly comparable situation. Sven Eenmaa - Stifel, Nicolaus & Company, Incorporated, Research Division: You mean comparable in terms of the organic growth in the September quarter, similar to September quarter or just revenues being about flat year-over-year?

Well, I think you'll see a mild improvement in organic growth from Q2 of this year to Q3. I think as you compare it to a year ago, it's probably going to be broadly flat. Sven Eenmaa - Stifel, Nicolaus & Company, Incorporated, Research Division: Got it. That's very helpful. And in terms of that 1 telecommunications customer, have you disclosed how big of a share of your total revenues they are?

Well, we don't disclose because we don't have any customers that exceed 5% of our revenue, or we have not to-date. So we haven't identified that customer. I think it's most of you can make a very educated guess as to who that is. But the point I want to make is we probably have a half a dozen customers that are, call it 4-plus percent, but we feel very comfortable and we think we are well-diversified, broadly-diversified in our customer base, so that when you have an incident like this, it's a headwind, but it's not a take-down impact.

When you look at the organic business year-on-year, as we said earlier, earnings are up about 19%. And that's obviously, good news, but what we spent with the investment in Purcell, and what we anticipated hitting, we have not hit, because of this one major customer. And when I look at the percent on Purcell's business -- as I said earlier, it's about 50%. It's a big, big number on that business. What we anticipated hitting this year, if the Purcell, if this one customer would have been where it is, as said earlier, our guidance on this quarter wouldn't be midpoint of $1.06, it would be $1.20 something. That's how big of hit because of Purcell that we're seeing. Now again, I want to emphasize, we believe that we come back, we don't know when, but I think what's more important, what's much more important to me is the diversification on the business that we are working and the customer diversification. And as I mentioned earlier, over a couple of hundred million dollars in quote activity that we have right now. As I said earlier, in the short-run, I'm very disappointed in the enclosure business. In the long run, I'm still very high on that acquisition. Sven Eenmaa - Stifel, Nicolaus & Company, Incorporated, Research Division: Got it. That's good to know. And in terms of that one customer, the 1 last question on that front. Is that your sense that this a replacement business on their existing infrastructure or they're just delaying additional kind of build-out.

Well, we really don't know. We really don't know. There is a lot of -- there's been articles written on it, and a lot of different reasons have come up. But I'm not going to comment on it because I don't know factually, and I don't want to throw supposition at it. All I know for sure is that our battery sales to that customer are down, and we have not lost that business to competitors. They have in fact, just slowed up. And our sales on enclosures are down. And we do not believe that they're buying enclosures from other. They're just not buying. And by the way, I would add that other companies that are in a similar situation, dealing or selling to that one customer, they have reported publicly the same information we have that their business has been hurt, because of the lack of CapEx spending with that customer. Sven Eenmaa - Stifel, Nicolaus & Company, Incorporated, Research Division: Got it. And the final question is, I'm not sure what you guys provided, but what are your expectations in terms of cost margin performance in the third quarter?

Well we don't provide that information on the third quarter.

We actually -- well, if you looked at my script, I did say we broadly expected to be between 25% to 26% rate. So I think you'll see a little bit of pressure on margins from the fact that lead will be going up sequentially. But I don't think it's going to be a tremendous impact, but I did note that in my script.

Our next question comes from the line of Howard Rosencrans of VA.

Two questions. One is regarding -- it's a little tough to quantify the impact of lead on the third quarter, you had the suppliers which ran -- You had, I guess, lead is probably $0.07, $0.08, maybe $0.05, $0.07, $0.08, sequentially, and higher, or at least, it was during the summer, which is what leads into the third quarter, and maybe $0.05 higher year-to-year again, referring to the inventory that you had during the summer. So if it impacts you to the extent of $0.07 over the course of the year, and $0.02. I don't know, at the end of the day, I get to about a $0.10 as the negative lead impact in the third quarter. That was one question, and then I have a quick follow-up.

Okay. Let me just give you the bottom line, and I'll turn it over to Mike to put a little bit more color behind it. When you look at second quarter and third quarter, the impact on lead was about a $0.01 or $0.02 in the third quarter. We look at fourth quarter, even with the hedges that we have, if the market stays, the LME stays where it is, we will have a favorable fourth quarter in lead, compared to third quarter. As you may have read in the Q, we have, I think, it's 98.4 million pounds of lead, and hedged at $0.98. And when you run through the whole thing on this thing and look at where the market is today, the bottom line P&L impact Q3, it's $0.01 or $0.02 headwind compared to Q2, and in Q4 compared to Q3 it will be flat to slightly positive. Mike, you want to pick up that.

That's great. Let me just completely change gears. John, you put out some numbers, I guess, it was in April, May of a year ago talking about what your 5-year plan was. Asia, as you openly acknowledged, has not performed or specifically, the most important region there has not performed. How do you feel about your ability to execute on the 5-year plan, which if I have the time line right, would be -- clear me up on it, F-18 or F-19 and it basically called, if you go through the math for I don't know $7 or $8 in EPS?

Well, I think the answer to your question, I'm going to go back to a meeting we had about 2, 2.5 weeks ago, where the top 33 executives in the company around the world were here in Reading, Pennsylvania. And as a team, we looked at that and we analyzed it, and we said where are we on this thing? And we understand that we have to do more in acquisitions. We understand that the organic growth has to come in place. Look, I think the bottom line to it is, right now there are some things that's taken place, and I'll cover those in a second -- things we've got to be focused on. We are in this for the long haul. And it's kind of an awkward situation to be in, because when you see the kind of growth we've had year-on-year, we are very pleased with it. But when you compare it to where we want to be, genesis you question at $4 billion, we've got to goose this thing up a little bit. We know that. I can tell you at the end of that meeting, we had some specific action plans of things that we have to do to get this up. Now in the short run, what are we focusing at? First off is the enclosure business. As I said, we have got hundreds of millions of dollars in quote activity out there, but quote activity doesn't take money to the bank. We need to convert those into hard orders, so we're pushing very hard on doing that. The second thing we need to do and I touched on it, was on our China telecommunication business to get another product in place that's more competitive to what the market wants. And the third thing…

Would it be fair to say that the -- that an F-16 is a function of having the new product out in China that, that is potentially a game changer that makes that -- that gives us more visibility to getting to that big 5-year number? Or am I overstating the importance of that China product?

Yes, I don't think that's going to be a game changer. I think a game changer is going to take 5 or 6 different things. It's going to be continue to do new products in Europe and the Americas, continue to work to get the 12% up to -- back to 15% on operating. It's a host of things. No one thing. There's no home run in this game. It's a bunch of little things that all add up to be a big thing.

We have a follow-up question from the line of William Bremer of Maxim Group.

Gentleman, just a quick one. You called out that Purcell, definitely was a little bit of a disappointment this quarter. Can you sort of give us an idea of the other 2 acquisitions, Quallion and UTS. How did they -- are they running ahead of schedule since overall M&A was approximately 6% of consolidated sales?

Yes, I would say the 2 acquisitions, Quallion, the lithium-ion business located in California, north of LA and UTS, a Kuala Lumpur-based business with operations in Malaysia and Singapore. Broadly, I would say they are -- where we expected them to be. One case slightly ahead, the other case about where we expected. So but those, as you might recall, those are transactions that were valued in the, call it, $30 million range. And Purcell, even if you combine those other 2, Purcell's twice that combined size. So Purcell is the one that pushes the boat towards the M&A activity for us.

I agree, Mike. Could you provide us the contributions for the 2 -- for the quarter. I realized more, just to get a sense?

Well, what I would say is, collectively, as John said, when you add them all up they were mildly accretive, and I think that's a fair statement to make is that, there wasn't one that is wildly accretive to cover up for one that is deeply dilutive. They're all probably mildly accretive.

I'm showing no further questions in the queue at this time.

Okay. Well, thank you, everyone, for taking the time to call in and your interest in EnerSys. And we wish you, all, to have a great day today. Thank you.