<PAGE>
 
--------------------------------------------------------------------------------

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549


                                  FORM 10 - Q


                  Quarterly Report under Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

                For the fiscal quarter ended September 28, 1997

                        Commission File Number 1 - 11263


                               EXIDE CORPORATION
             ------------------------------------------------------ 
             (Exact name of registrant as specified in its charter)


              Delaware                                   23-0552730  
   -------------------------------                 ---------------------- 
   (State or other jurisdiction of                 (I.R.S. Employer
    incorporation or organization)                 Identification Number)


1400 N. Woodward Ave., Bloomfield Hills, Michigan              48304
-------------------------------------------------     ----------------------- 
  (Address of principal executive offices)                   (Zip Code)


                                (248) 258-0080
             ----------------------------------------------------
             (Registrant's telephone number, including area code)

  Indicate by a check mark whether the registrant: (1) has filed all reports
  required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
  1934 during the preceding 12 months (or for such shorter period that the
  registrant was required to file such reports), and (2) has been subject to
  such filing requirements for the past 90 days.

                     Yes      X       No 
                         ----------      ---------


  Indicate the number of shares outstanding of each of the issuer's classes of
  common stock, as of the latest practical date:

        As of November 10, 1997, 21,325,863 shares of common stock were
              outstanding.

--------------------------------------------------------------------------------
<PAGE>
 
                       EXIDE CORPORATION AND SUBSIDIARIES

                               TABLE OF CONTENTS


PART I.         FINANCIAL INFORMATION
-------------------------------------

Item 1.  Financial Statements (unaudited except for March 31, 1997
           Consolidated Balance Sheet).

               --       Condensed Consolidated Balance Sheets - -
                         September 28, 1997 and March 31, 1997.
 
               --       Consolidated Statements of Operations - -
                         for the three and six months ended September 28, 1997
                         and for the three and six months ended September 29,
                         1996.

               --       Consolidated Statements of Cash Flows - -
                         for the six months ended September 28, 1997 and
                         September 29,1996.

               --       Notes to Condensed Consolidated Financial Statements - -
                         September 28, 1997.

Item 2.  Management's Discussion and Analysis of Financial Condition and
          Results of Operations.


PART II.        OTHER INFORMATION
---------------------------------

Item 4.  Submission of Matters to a Vote of Security Holders
 
Item 6.  Selected Financial Data

         6 (a).  Exhibits filed with this report.
                 Exhibit 11.1 - Computation of Per Share Earnings
                 Exhibit 27 - Financial Data Schedule


SIGNATURE
---------

                                       1
<PAGE>
 
                      EXIDE CORPORATION AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
            (Amounts in thousands, except share and per-share data)
 
<TABLE> 
<CAPTION> 


                                                  September 28,      March 31,
                                                      1997             1997
                                                   (Unaudited)
                                                  -------------     -----------
<S>                                               <C>               <C>  
ASSETS
------

CURRENT ASSETS:
   Cash and cash equivalents                      $      31,878     $   42,706
   Receivables, net of allowance for doubtful
         accounts of $39,115 and $38,486                518,451        569,683
   Inventories                                          577,140        533,514
   Prepaid expenses and other                            22,086         21,889
   Deferred income taxes                                 24,391         23,667
                                                  -------------     ----------   
               Total current assets                   1,173,946      1,191,459
                                                  -------------     ----------    

PROPERTY, PLANT AND EQUIPMENT                           902,084        797,772
   Less - Accumulated depreciation                     (313,571)      (275,936)
                                                  -------------     ----------   
               Total property, plant and
                equipment, net                          588,513        521,836
                                                  -------------     ----------    
OTHER ASSETS:
   Goodwill, net                                        614,272        596,254
   Investments in affiliates                             24,826         24,016
   Deferred financing costs, net                         25,010         26,770
   Deferred income taxes                                 37,743         40,306
   Other                                                 42,538         37,854
                                                  -------------     ----------   
                                                        744,389        725,200
                                                  -------------     ----------    
       Total assets                               $   2,506,848     $2,438,495
                                                  =============     ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
 
CURRENT LIABILITIES:
   Short-term borrowings                          $      25,155     $   16,123
   Current maturities of long-term debt                  31,885         37,488
   Accounts payable, trade                              229,721        236,889
   Accrued expenses                                     331,683        270,519
                                                  -------------     ----------   
       Total current liabilities                        618,444        561,019
                                                  -------------     ----------    
 
LONG-TERM DEBT                                        1,250,318      1,236,071
                                                  -------------     ----------    

OTHER NONCURRENT LIABILITIES                            279,933        250,547
                                                  -------------     ----------    
COMMITMENTS AND CONTINGENCIES
 
MINORITY INTEREST                                        20,189         19,448
                                                  -------------     ----------    
STOCKHOLDERS' EQUITY
   Common stock, $.01 par value 60,000,000
    shares authorized; 21,324,539 
    and 21,336,757 shares issued and 
    outstanding                                             213            213
   Additional paid-in capital                           489,684        489,427
   Accumulated deficit                                  (30,464)       (21,569)
   Notes receivable - stock award plan                   (1,609)        (1,696)
   Unearned compensation                                   (419)          (516)
   Minimum pension liability adjustment                  (4,993)        (4,993)
   Cumulative translation adjustment                   (114,448)       (89,456)
                                                  -------------     ----------   
               Total stockholders' equity               337,964        371,410
                                                  -------------     ----------    
               Total liabilities and    
                stockholders' equity              $   2,506,848     $2,438,495
                                                  =============     ========== 
 
</TABLE>


       THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                       2
<PAGE>
 
                      EXIDE CORPORATION AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
            (Amounts in thousands, except share and per-share data)
 
 
<TABLE>
<CAPTION>
                                                    For the Three Months Ended               For the Six Months Ended
                                                 -------------------------------       --------------------------------------  

                                                 September 28,      September 29,      September 28,            September 29,
                                                     1997               1996               1997                     1996
                                                 -------------      -------------      -------------            -------------  
<S>                                              <C>                <C>                <C>                      <C>  
NET SALES                                        $     552,389      $     587,403      $   1,042,754            $   1,143,423
 
COST OF SALES                                          404,043            431,587            770,100                  856,906
                                                 -------------      -------------      -------------            -------------  

         Gross profit                                  148,346            155,816            272,654                  286,517
                                                 -------------      -------------      -------------            -------------   
OPERATING EXPENSES:
   Selling, marketing and advertising                   69,906             66,033            138,719                  138,880
   General and administrative                           31,876             33,347             63,033                   72,936
   Goodwill amortization                                 4,283              4,786              8,401                    9,338
                                                 -------------      -------------      -------------            -------------  
                                                       106,065            104,166            210,153                  221,154
                                                 -------------      -------------      -------------            -------------   

         Operating income                               42,281             51,650             62,501                   65,363
 
INTEREST EXPENSE                                        27,834             30,701             57,098                   61,457
OTHER EXPENSE, net                                       1,426                953              3,677                      593
                                                 -------------      -------------      -------------            -------------   
         Income before income taxes,
          minority interest and 
          extraordinary loss                            13,021             19,996              1,726                    3,313
 
INCOME TAX PROVISION                                     5,085              8,614              1,526                    3,609
                                                 -------------      -------------      -------------            -------------   
         Income (loss) before minority
          interest and extraordinary loss                7,936             11,382                200                     (296)
 
MINORITY INTEREST                                         (218)              (309)              (509)                    (868)
                                                 -------------      -------------      -------------            -------------   
         Income before extraordinary loss                8,154             11,691                709                      572
 
EXTRAORDINARY LOSS RELATED TO EARLY
   RETIREMENT OF DEBT, net of income tax
    benefit of $768 for the three and six
    months ended September 28, 1997                     (1,445)                --             (8,758)                      --
                                                 -------------      -------------      -------------            -------------   
         Net income (loss)                       $       6,709      $      11,691      $      (8,049)           $         572
                                                 =============      =============      =============            ============= 
 
NET INCOME (LOSS) PER COMMON AND COMMON
   EQUIVALENT SHARE:
      Income before extraordinary loss           $        0.38      $        0.56      $        0.03            $        0.03
      Extraordinary loss                                 (0.07)                --              (0.41)                      --
                                                 -------------      -------------      -------------            -------------  
         Net income (loss)                       $        0.31      $        0.56      $       (0.38)           $        0.03
                                                 =============      =============      =============            ============= 
 
WEIGHTED AVERAGE NUMBER OF COMMON AND
   COMMON EQUIVALENT SHARES OUTSTANDING             21,680,806         20,831,086         21,463,753               20,827,766
                                                 =============      =============      =============            ============= 
</TABLE>

       THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                       3
<PAGE>
 
                      EXIDE CORPORATION AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                            (Amounts in thousands)
<TABLE> 
<CAPTION>  
                                                                   For the Six Months Ended
                                                               --------------------------------
                                             
                                                               September 28,      September 29,
                                                                    1997               1996
                                                               --------------------------------
<S>                                                            <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:        
   Net income (loss)                                            $     (8,049)      $        572
   Adjustments to reconcile net income (loss)                  
      to net cash provided by operating activities -                       
         Depreciation and amortization                                55,359             58,457
         Extraordinary loss                                            8,758                 --
         Deferred income taxes                                         3,253              2,036
         Original issue discount on notes                              5,528              9,473
         Provision for losses on accounts receivable                   1,685              1,575
         Minority interest                                              (509)              (868)
   Changes in assets and liabilities excluding
      effects of acquisitions -              
         Receivables                                                  43,697            (53,891)
         Inventories                                                 (29,306)            21,092
         Prepaid expenses and other                                     (662)             5,381
         Payables and accrued expenses                                27,764            (35,128)
         Other, net                                                      849                313
                                                                ------------       ------------ 
           Net cash provided by operating activities                 108,367              9,012
                                                                ------------       ------------
CASH FLOWS FROM INVESTING ACTIVITIES:        
   Acquisitions of certain businesses                                (32,920)            (8,928)
   Capital expenditures                                              (42,589)           (49,529)
   Proceeds from sale of assets                                        2,058             15,923
                                                                ------------       ------------ 
           Net cash used in investing activities                     (73,451)           (42,534)
                                                                ------------       ------------ 
CASH FLOWS FROM FINANCING ACTIVITIES:        
   Increase in short-term borrowings                                   9,603              9,580
   Borrowings under U.S. Credit Agreement                            115,875             18,000
   Borrowings under Former European Facilities Agreement                  --             10,863
   Repayment of European Facilities Agreement                        (93,032)                --
   Repayment of European term loans                                       --             (3,254)
   Repayment of Acquired Debt                                        (64,644)                --
   Issuance of 9.125% Senior Notes                                   102,130                 --
   Retirement of 12.25% Senior Subordinated Notes                   (104,096)                --
   Decrease in other debt                                             (2,429)            (7,620)
   Dividends paid                                                       (846)              (836)
   Debt issuance costs                                                (6,980)            (1,001)
                                                                ------------       ------------  
           Net cash provided by (used in) financing activities       (44,419)            25,732
                                                                ------------       ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND  
       CASH EQUIVALENTS                                               (1,325)            (1,022)
                                                                ------------       ------------
NET DECREASE IN CASH AND CASH EQUIVALENTS                            (10,828)            (8,812)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                        42,706             47,259
                                                                ------------       ------------ 
CASH AND CASH EQUIVALENTS, END OF PERIOD                        $     31,878       $     38,447
                                                                ============       ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                
   Cash paid during the year for -           
       Interest (net of amount capitalized)                     $     43,633       $     46,061
       Income taxes                                             $      1,765       $     10,501
</TABLE>

       THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                       4
<PAGE>
 
                      EXIDE CORPORATION AND SUBSIDIARIES
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              September 28, 1997
            (Amounts in thousands, except share and per-share data)
                                  (Unaudited)


(1)  BASIS OF PRESENTATION, ETC.
--------------------------------

The condensed consolidated financial statements include the accounts of Exide
Corporation (the "Company") and all of its majority-owned subsidiaries. The
accompanying financial statements are presented in accordance with the
requirements of Form 10-Q and consequently do not include all of the disclosures
normally required by generally accepted accounting principles or those normally
made in the Company's annual Form 10-K filing. Accordingly, the reader of this
Form 10-Q may wish to refer to the Company's Form 10-K for the year ended March
31, 1997 for further information.

The financial information has been prepared in accordance with the Company's
customary accounting practices and has not been audited (except for Balance
Sheet information presented at March 31, 1997). In the opinion of management,
the accompanying condensed consolidated financial information reflects all
adjustments necessary to present fairly the results of operations and financial
position for the periods presented.

Fully diluted earnings (loss) per share on Income (loss) before extraordinary
loss and on Net income (loss) for the three and six months ended September 28,
1997 and the comparable period in fiscal 1997 were antidilutive.

During 1997, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards No. 128, "Earnings per Share," which specifies
the computation, presentation and disclosure requirements for earnings per share
("EPS") for public companies. This statement is effective for both interim and
annual periods ending after December 15, 1997. Adoption of this statement for
the Company will occur in the third fiscal quarter of fiscal 1998 and earlier
periods presented will be restated. The EPS as currently reported is essentially
the same as Basic EPS required by the standard. The newly required Diluted EPS
is not materially different than Basic EPS.

In the second quarter of 1997, the FASB issued Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income," and Statement of Financial
Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and
Related Information." The Company will be required to adopt these new standards
in fiscal 1999 and restate prior years presented. The Company has not determined
the effect of adopting these new pronouncements on the consolidated financial
statements.

Certain prior period amounts have been reclassified to conform to the current
period presentation.

                                       5
<PAGE>
 
(2)  ACQUISITIONS AND DIVESTITURES
----------------------------------

In July 1997, the Company acquired three related German producers and marketers
of starter, lighting and ignition ("SLI") batteries and Industrial batteries,
DETA Akkumulatorenwerk GmbH, MAREG Accumulatoren GmbH, and FRIWO SILBERKRAFT
GmbH (together "DETA") for approximately $34,000 plus assumed debt of
approximately $64,600. This acquisition was accounted for as a purchase. The
cost of the acquisition has been allocated on the basis of the estimated fair
value of the assets acquired and the liabilities assumed. This acquisition
resulted in goodwill of approximately $22,100.

In July 1996, the Company acquired the majority of the stock of Metalurgica De
Cubas S.L. ("Cubas"), a secondary lead smelter located near Madrid, Spain, for
approximately $7,500. In November 1996, the remaining stock was purchased for
approximately $3,200. The acquisition was accounted for as a purchase and the
results of Cubas' operations are included in the Company's consolidated
statement of operations effective July 1, 1996. The cost of the acquisition has
been allocated on the basis of the estimated fair value of the assets acquired
and the liabilities assumed. This acquisition resulted in goodwill of
approximately $7,300.

In June 1996, the Company sold certain assets related to its battery separator
division of Evanite Fiber Corporation ("Evanite") for $13,000 in cash. In
December 1996, the Company sold substantially all of the remaining net assets of
Evanite for approximately $23,000 (subject to final adjustments). The gain on
these transactions of approximately $8,300 was included in Other expense
(income), principally in the fiscal quarter ending December 29, 1996.

In April 1996, the Company acquired 14.4% of the remaining 15.6% minority
interest in a subsidiary of Sociedad Espanola del Acumulador Tudor, S.A.
("Tudor") for $3,562.

(3)  INVENTORIES
----------------

<TABLE>
<CAPTION>

                                  September 28,        March 31,
                                      1997               1997
                                -----------------   --------------
      <S>                         <C>               <C>
      Raw materials               $     130,741     $    117,038
                                               
      Work-in-process                    79,404           70,805
                                               
      Finished goods                    366,995          345,671
                                  -------------   --------------
                                  $     577,140     $    533,514
                                  =============   ==============

</TABLE>

                                       6
<PAGE>
 
At September 28, 1997 and March 31, 1997, inventories valued by the LIFO method
were approximately 28% and 33% of consolidated inventories, respectively. If all
inventories had been determined using the first-in, first-out method, such
inventories would have been $560,073 and $516,447 at September 28, 1997 and
March 31, 1997, respectively. The carrying amount of inventories on a LIFO basis
exceeds replacement cost. LIFO inventories reflect the fair value of inventories
as of August 31, 1989, when all of the outstanding common shares of the Company
were acquired in a leveraged buyout, as inventories subsequently produced cost
less to manufacture. The Company believes that no write-down of the carrying
amount of inventories to replacement cost is necessary, as no loss will be
realized upon their final sale.
                                                                                
(4)  RECEIVABLES SALE AGREEMENT
-------------------------------

In June 1997, certain of the Company's European subsidiaries established a
multicurrency receivables sale facility with a financial institution to sell
selected trade accounts of the Company, up to a maximum of $175,000. The net
proceeds from the sale of accounts receivable (approximately $102,000 at
September 28, 1997) were used to repay a portion of borrowings under the
European Facilities Agreement.

(5)  SHORT-TERM BORROWINGS
--------------------------

At September 28, 1997 and March 31, 1997, short-term borrowings consisted of
various operating lines of credit and working capital facilities maintained by
certain of the Company's non-U.S. subsidiaries. Some of these borrowings are
secured by receivables, inventories or property. These facilities, which are
typically for one year renewable terms, generally bear interest at the current
market rates plus up to 1%. As of September 28, 1997 and March 31, 1997, the
weighted average interest rate on these borrowings was 11.4% and 12.0%,
respectively.

                                       7
<PAGE>
 
(6)  LONG-TERM DEBT
-------------------  

Following is a summary of the Company's long-term debt at September 28, 1997
and March 31, 1997:
<TABLE>
<CAPTION>
                                                     September 28,     March 31,
                                                         1997            1997
                                                     -------------   -----------
<S>                                                  <C>             <C>
U.S. Credit Agreement borrowings primarily at
   LIBOR plus 2.5% at September 28, 1997
   (8.7%), and March 31, 1997 (8.2%)                    $  132,875    $   17,000
 
9.125% Senior Notes, due April 15, 2004                     99,480            --

10% Senior Notes, due April 15, 2005                       300,000       300,000

10.75% Senior Notes, due December 15, 2002                 150,000       150,000

12.25% Senior Subordinated Deferred Coupon
   Debentures, due December 15, 2004                         1,835       101,187

Convertible Senior Subordinated Notes,
   due December 15, 2005                                   302,555       298,295

European Facilities Agreement, borrowings
   primarily at LIBOR plus 2.0% (ranging from
    4.8% to 9.1% at September 28, 1997 and
    from 4.8% to 10.0% at March 31, 1997)                  247,675       356,865

Other, primarily capital lease obligations at
   interest rates ranging from 3.7% to 7.7%
   due in installments through 2015                         47,783        50,212
                                                        ----------    ----------
                                                         1,282,203     1,273,559

Less - Current maturities                                   31,885        37,488
                                                        ----------    ----------
                                                        $1,250,318    $1,236,071
                                                        ==========    ==========
</TABLE>

Borrowings under the European Facilities Agreement bear interest at local market
rates (comparable to LIBOR) plus a margin of 1.5% per annum (increased to 2.0%
in connection with the funding of the European Receivables Sale Agreement in
July 1997), reducing in 0.25% increments beginning after one year to 1.0% so
long as the European borrowing group, as defined, meets and maintains certain
interest coverage and leverage tests.

Borrowings under the European Facilities Agreement are supported by guarantees
of most of the Company's European subsidiaries and are secured by pledges of the
stock of the Company's Euro Exide, CEAc and Tudor subsidiaries. The European
Facilities Agreement contains a number of financial and other covenants
customary for such agreements including restrictions on new indebtedness, liens,
minimum net worth, leverage rates, acquisitions, and capital expenditures.

                                       8
<PAGE>
 
On July 10, 1997, the European Facilities Agreement was amended to reduce the
maximum commitment to 1,718 million French francs (U.S. $290,000) from the
original 2,569 French francs (U.S. $434,000). The write-off of the related
unamortized deferred financing costs associated with this early retirement of
debt resulted in an extraordinary loss of $1,364 (net of income tax benefit of
$768).

In June 1997, the Company entered into a series of bond swap agreements for
$13,150 (principal amount) of its 10% Senior Notes. Under the agreements, the
Company pays LIBOR plus 1.75% to a counterparty and receives from the
counterparty the fixed coupon rate payments made by the Company. At the end of
the agreements, the counterparty is guaranteed repayment of its open market
purchase price of the Notes which exceeded face value by $653. This debt
modification was accounted for as an extinguishment of debt, and the related
write-off of unamortized deferred financing costs along with the premium paid by
the counterparty resulted in an extraordinary loss of $902. No income tax
benefit on the extraordinary loss was recognized.

On May 7, 1997, the Company redeemed $108,119 (face value) of its outstanding
12.25% Zero-Coupon Bonds for $104,095. The Company financed the tender offer
through borrowings under the U.S. Credit Agreement, $50,000 of which was from
the new Tranche D variable rate term loan and the balance from the revolver.
This redemption resulted in an extraordinary loss of $6,492 related to the 
write-off of unamortized deferred financing costs and the premium paid
associated with the early extinguishment of substantially all of the 12.25%
Senior Subordinated Deferred Coupon Debentures. No income tax benefit on the
extraordinary loss was recognized.

On April 23, 1997, the Company issued 175 million Deutsche mark (U.S. $102,130)
9.125% Senior Notes due on April 15, 2004. The Company used the funds to repay
indebtedness under the European Facilities Agreement.

At September 28, 1997, the Company was in compliance with all covenants related
to its existing debt.

See Note 5 of the Notes to Consolidated Financial Statements included in the
Company's March 31, 1997 Form 10-K for further information regarding the
Company's long-term debt.

(7)  ENVIRONMENTAL MATTERS
--------------------------

The Company, particularly as a result of its manufacturing and secondary lead
smelting operations, is subject to numerous environmental laws and regulations
and is exposed to liabilities and compliance costs arising from its past and
current handling, processing, recycling, storing and disposing of hazardous
substances and hazardous wastes. The Company's operations are also subject to
occupational safety and health laws and regulations, particularly relating to
the monitoring of employee health in North America and, to a lesser extent, in
Europe. Except as disclosed in Note 13 of Notes to Consolidated Financial
Statements included in the Company's March 31, 1997 Form 10-K or herein, the
Company believes that it is in substantial compliance with all material
environmental, health and safety requirements.

                                       9
<PAGE>
 
North America
-------------

The Company has been advised by the U.S. Environmental Protection Agency ("EPA")
that it is a "Potentially Responsible Party" ("PRP") under the Comprehensive
Environmental Response, Compensation and Liability Act ("CERCLA") or similar
state laws at 56 federally defined Superfund or state equivalent sites. At 33 of
these sites, the Company has either paid or is in the process of paying its
share of liability. In most instances, the Company's obligations are not
expected to be significant because its portion of any potential liability
appears to be minor to insignificant in relation to the total liability of all
PRPs that have been identified and are viable. The Company's share of the
anticipated remediation costs associated with all of the Superfund sites where
it has been named a PRP, based on the Company's estimated volumetric
contribution to each site, is included in the environmental remediation reserves
discussed below.

Because the Company's liability under such statutes may, as a technical matter,
be imposed on a joint and several basis, the Company's liability may not
necessarily be based on volumetric allocations and could be greater than the
Company's estimates. Management believes, however, that its PRP status at these
Superfund sites will not have a material adverse affect on the Company's
business or financial condition because, based on the Company's experience, it
is reasonable to expect that the liability will be roughly proportionate to its
volumetric contribution of waste to the sites.

While the ultimate outcome of the various environmental matters is uncertain,
after consultation with legal counsel, management does not believe the
resolution of these matters will have a material adverse effect on the Company's
business, cash flows, financial condition or results of operations. The
Company's policy is to accrue for environmental costs when it is probable that a
liability has been incurred and the amount of such liability is reasonably
estimable. While the Company believes its current estimates of future
remediation costs are reasonable, future findings or changes in estimates could
have a material effect on the recorded reserves.

During the third and fourth quarters of fiscal 1997, the Company finalized the
settlement of environmental impairment claims with several insurance carriers in
an amount aggregating $17,309. This settlement, which was reflected in cost of
sales, offset certain legal costs that the Company incurred in fiscal 1997, as
well as the elimination of $7,000 of legal fees deferred in fiscal 1996.

The Company has reserves for on-site and off-site environmental remediation
costs and believes that such reserves are adequate. As of September 28, 1997,
the amount of such reserves on the Company's balance sheet was $35,921. Of this
amount, $34,288 was included in Other Noncurrent Liabilities. Because
environmental liabilities are not recorded until the liability is determined to
be probable and reasonably estimable, not all potential future environmental
liabilities have been included in the Company's environmental reserves and
future adjustments to the reserves are possible.

                                       10
<PAGE>
 
Europe
------

The Company is subject to numerous environmental, health and safety requirements
and is exposed to differing degrees of liabilities and compliance costs arising
from its past and current manufacturing and recycling activities in various
European countries. The laws and regulations applicable to such activities
differ from country to country and also substantially differ from U.S. laws and
regulations.

Certain facilities in France, Germany and Spain are not in compliance with
certain limits contained in air and wastewater treatment discharge permits. In
every case, the Company is working cooperatively with appropriate authorities to
come into compliance. It is possible that the Company could be subject to fines
or penalties with regard to these violations, although management believes any
such fines / penalties will not be material. The cost to upgrade the facilities
to attain compliance is not expected to be material. The violations are not
expected to interfere with continued operations at the subject facilities.

The Company expects that its European operations will continue to incur capital
and operating expenses in order to maintain compliance with evolving
environmental, health and safety requirements or more stringent enforcement of
existing requirements in each country.

(8)  COMMITMENTS AND CONTINGENCIES
----------------------------------

In August 1996, a Portland, Oregon jury found that the Company infringed a
patent relating to a device for inserting battery plates into battery
separators, and awarded damages of $5,000. Later, the Court, acting on the
jury's verdict, entered a judgment against the Company for $5,456. On April 28,
1997, the Court denied the Company's post-trial motions relating to the
judgment. On May 16, 1997, the Company filed its Notice of Appeal. On May 21,
1997, plaintiffs filed a cross appeal. The Company is vigorously prosecuting the
appeal. Management and its independent patent counsel remain confident that the
jury verdict and the court's judgment relating to the patent asserted at trial
will be reversed and that the cross appeal is without merit and, therefore,
shall be rejected. The Company anticipates receiving a decision on the appeal
during fiscal 1998.

The Company is now or recently has been involved in several related lawsuits
pending in state and federal courts in Alabama, North Carolina and South
Carolina. These actions contain allegations that the Company sold old or used
batteries as new batteries. One action that had been certified as a class action
was later decertified by the Alabama Supreme Court and has now been dismissed.
In another action, the judge directed a verdict in favor of the Company
following presentation of the plaintiff's evidence. That case is now on appeal.
On August 11, 1997, the Company's motion for summary judgment was granted on
another one of these cases. The remaining actions seek compensatory and punitive
damages and, in one case, injunctive relief. The Company disputes the material
legal claims in these matters and intends to vigorously defend itself.

The Company is involved in various other claims and litigation incidental to the
conduct of its business. Based on consultation with legal counsel, management
does not believe that any claims or litigation to which the Company is a party
will have a material adverse effect on the Company's financial condition or
results of operations.

                                       11
<PAGE>
 
The Company has various purchase commitments for materials, supplies and other
items incident to the ordinary course of business. In the aggregate, such
commitments are not at prices significantly in excess of current market.

                                       12
<PAGE>
 
  ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS
                      -----------------------------------

  General

  The Company through its European operations is exposed to foreign currency
  risk in most Western European countries, principally France, Spain, Germany,
  Italy and the U.K.  The Company does not have material operations in countries
  where economies can be classified as hyper-inflationary.  Movements of
  exchange rates vis-a-vis the U.S. dollar can result in both unrealized and
  realized exchange gains or losses.  In some circumstances, gains in one
  currency may be offset by losses in another as all currencies may not move in
  unison vis-a-vis the U.S. dollar. Because it is not possible to forecast
  future movements in foreign exchange rates it is the policy of the Company to
  reduce foreign currency risk by balancing net foreign currency positions where
  possible.


  Results of Operations

  Three months ended September 28, 1997 compared with the three months ended
  September 29, 1996.

  Net sales decreased $35.0 million, or 6.0%, to $552.4 million in the second
  quarter of fiscal 1998 compared with the second quarter of fiscal 1997.  The
  decrease was principally attributable to the impact of changes in foreign
  exchange rates ($62.3 million), the fiscal 1997 divestiture of Evanite ($8.4
  million), partially offset by the inclusion of DETA in fiscal 1998 ($21.7
  million) and product mix.  Industrial battery sales (included above) for the
  quarter ended September 28, 1997 were $150.4 million versus $150.7 million for
  the quarter ended September 29, 1996.

  Gross profit decreased $7.5 million while gross profit margin increased by 0.4
  percentage points in the second quarter of fiscal 1998 versus the second
  quarter of fiscal 1997.  The decrease in gross profit and related increase in
  the gross profit margin were primarily attributable to the effect of changes
  in foreign exchange rates ($19.9 million) and the absence of Evanite ($1.6
  million) offset by the inclusion of DETA in fiscal 1998 ($6.6 million),
  improved product mix, including the new NASCAR line, and manufacturing cost
  reductions related to the European rationalization/consolidation process.

  Operating expenses increased $1.9 million, or 1.8% in the second quarter ended
  September 28, 1997 versus the comparable period in fiscal 1997, due to the
  inclusion of DETA in fiscal 1998 ($3.9 million) and to advertising expenses
  incurred for the roll out of the NASCAR line, partially offset by the impact
  of changes in foreign exchange rates.

  Operating income decreased $9.4 million, or 18.1%, primarily as a result of
  the matters discussed above.

  Interest expense decreased $2.9 million or 9.3%, primarily due to the effect
  of changes in foreign exchange rates, partially offset by the inclusion of
  DETA.


                                      13
<PAGE>
 
  Other income/expense, net was $1.4 million expense for the fiscal quarter
  ended September 28, 1997 versus $1.0 million expense for the comparable period
  in fiscal 1997.  This $0.4 million change principally relates to fees
  associated with the establishment of the asset securitization facility in
  Europe ($1.0 million) and the loss on the European sale of accounts receivable
  ($1.5 million) offset by the favorable net currency transaction change (a $1.0
  million net currency gain in the second quarter of fiscal 1998 versus a $1.7
  million net currency transaction loss in the second quarter of fiscal 1997).

  Net income decreased $5.0 million, primarily as a result of the matters
  discussed above, and the recognition of a $1.4 million extraordinary loss (net
  of income tax benefit of $0.8 million) in fiscal 1998 related to the early
  retirement of debt (see Note 6 to the Company's Condensed Consolidated
  Financial Statements appearing elsewhere herein).

  Six months ended September 28, 1997 compared with the six months ended
  September 29, 1996

  Net sales decreased $100.7 million, or 8.8%, to $1,042.8 million in the first
  six months of fiscal 1998 compared with the first six months of fiscal 1997.
  The decrease was principally attributable to the impact of changes in foreign
  exchange rates ($97.6 million), the fiscal 1997 divestiture of Evanite ($19.7
  million) offset by the inclusion of DETA in fiscal 1998 ($21.7 million) and
  product mix.  Industrial battery sales (included above) for the six months
  ended September 28, 1997 were $303.2 million versus $320.0 million for the
  first six months of fiscal 1997.

  Gross profit decreased $13.9 million while gross profit margin increased by 1
  percentage point in the first six months of fiscal 1998 versus the first six
  months of fiscal 1997.  The decrease in gross profit and the increase in gross
  profit margin were principally attributable to the effect of changes in
  foreign exchange rates ($30.5 million), the absence of Evanite ($4.6 million)
  offset by the inclusion of DETA in fiscal 1998 ($6.6 million), improved
  product mix, including the new NASCAR line, and manufacturing cost reductions
  related to the European rationalization/consolidation process.

  Operating expenses decreased $11.0 million, or 5.0% in the first six months of
  fiscal 1998 versus the comparable period in fiscal 1997, primarily due to the
  impact of changes in foreign exchange rates, headcount reductions associated
  with the European rationalization/consolidation strategy offset by
  advertising expenses incurred for the roll out of the NASCAR line and the
  inclusion of DETA ($3.9 million).

  Operating income decreased $2.9 million, or 4.4%, primarily as a result of the
  matters discussed above.

  Interest expense decreased $4.4 million, primarily due to the effect of
  changes in foreign exchange rates, partially offset by the inclusion of DETA.

                                      14
<PAGE>
 
  Other income/expense, net was $3.7 million expense for the first six months
  of fiscal 1998 versus $0.6 million expense for the comparable period in fiscal
  1997. The $3.1 million change principally relates to the fees associated with
  the establishment of the asset securitization facility in Europe ($1.0
  million), the loss on the European sale of accounts receivable ($1.5 million),
  the absence of the fiscal 1997 gain on the sale of certain assets related to
  Evanite's battery separator product line ($0.7 million) offset by the absence
  of the fiscal 1997 currency loss of $1.3 million.

  Net income decreased $8.6 million, primarily as a result of the matters
  discussed above, and the recognition of an $8.8 million extraordinary loss
  (net of income tax benefit of $0.8 million) in the first six months of fiscal
  1998 related to the early retirement of debt (see Note 6 to the Company's
  Condensed Consolidated Financial Statements appearing elsewhere herein).

  Liquidity and Capital Resources

  The Company's liquidity requirements arise primarily from the funding of its
  seasonal working capital needs, obligations on its indebtedness and capital
  expenditures.  In addition, the Company has paid cash dividends of $.02 per
  share on the common stock in each completed quarter following its initial
  public offering.  Historically, the Company has met these liquidity
  requirements through cash flows generated from operating activities and with
  borrowed funds and the proceeds of sales of accounts receivable.  During
  fiscal 1998 and beyond the Company also expects to meet its liquidity
  requirements in the same manner.  The Company is party to a U.S. receivables
  purchase agreement under which the other party has committed (subject to
  certain exceptions) to purchase selected accounts receivable of the Company,
  up to a maximum commitment of $75.0 million.  Effective July 10, 1997 the
  Company entered into a European receivables purchase agreement under which a
  financial institution has committed (subject to certain exceptions) to
  purchase selected accounts receivable of Exide's subsidiaries in France,
  Germany, Italy, Spain and the U.K., up to a maximum commitment of $175
  million.  Due to the seasonal demands of the battery industry, the Company
  builds inventory in advance of the typically stronger selling periods during
  the fall and winter.  The Company's greatest cash demands from operations
  occur during the months of June through October.

                                      15
<PAGE>
 
  Funds provided by operations were $108.4 million and $9.0 million for the six
  months ended September 28, 1997 and September 29, 1996, respectively.  For the
  six months ended September 28, 1997, $102.1 million was provided by sales of
  European accounts receivable.  See Note 4 to the Company's Condensed
  Consolidated Financial Statements appearing elsewhere herein.  Because of the
  seasonality of the Company's business, more funds are typically generated in
  its third and fourth fiscal quarters.  In the next several years, the Company
  will continue to complete the closure of various European plants which will
  necessitate cash payments for severance, etc.  While the Company believes that
  a large portion of its cash requirements for its European plant consolidation
  activities will be generated from operations, it has sufficient liquidity and
  capital resources through its European Facilities Agreement and European
  Receivables Purchase Agreement  and also has sufficient borrowing availability
  under its U.S. Credit Agreement.

  The Company's capital expenditures were $42.6 million and $49.5 million in the
  six months ended September 28, 1997 and September 29, 1996, respectively.  The
  U.S. Credit Agreement and the European Facilities Agreement restrict the
  amount of capital expenditures which may be made by the Company and its
  subsidiaries.  The Company believes that it has sufficient resources for its
  capital expenditure programs from operating cash flows and borrowing
  availability under its existing credit agreements.

  On April 23, 1997, the Company issued 175 million Deutsche mark (U.S. $102.1
  million) 9.125% Senior Notes due on April 15, 2004.  The Company used the
  funds to repay indebtedness under the European Facilities Agreement.

  On May 7, 1997, the Company redeemed $108.1 million (face value) of its
  outstanding 12.25% Zero-Coupon Bonds for $104.1 million.  The Company financed
  the tender offer through borrowings under the U.S. Credit Agreement, $50
  million of which was from the new Tranche D variable rate term loan and the
  balance was financed with borrowings from the revolver.

  As of September 28, 1997, the Company had $143.5 million outstanding on its
  U.S. Credit Agreement, including letters of credit, and $268.4 million was
  outstanding under the European Facilities Agreement, including letters of
  credit.  Obligations under the U.S. Credit Agreement and the European
  Facilities Agreement bear interest at fluctuating rates.  Increases in
  interest rates on such obligations could adversely affect the Company's
  results of operations and financial condition.  The Company has two interest
  rate collar agreements which reduce the impact of changes in interest rates on
  a portion of the Company's floating rate debt.  The collar agreements
  effectively limit the LIBOR base interest rate on $100.0 million of borrowings
  under the U.S. Credit Agreement to no more than 8% through December 30, 1997.
  If interest rates fall below certain levels, Exide is required to make
  payments to the counterparties under the agreements.  Additionally, the
  Company entered into a series of bond swap agreements which effectively
  converted $51.1 million (principal amount) of the 10% and 10.75% Senior Notes
  into a variable LIBOR interest rate through April 15, 2000 and December 15,
  1999, respectively.  The Company has the right to terminate the $51.1 million
  bond swap agreements at any time before maturity.  See Note 6 to the Company's
  Condensed Consolidated Financial Statements appearing elsewhere herein.

                                      16
<PAGE>
 
  On July 10, 1997 the Company received proceeds of $112.5 million pursuant to
  its initial sale of receivables under the European Receivables Purchase
  Agreement. The Company used the funds to repay indebtedness under the European
  Facilities Agreement.  Concurrent with the Receivables Purchase Agreement, on
  July 10, 1997, the European Facilities Agreement was amended to reduce the
  maximum commitment to 1,718 million French francs (U.S. $291 million) from the
  original 2,569 million French francs (U.S. $435 million) and change the
  variable interest rate on local market borrowings (comparable to LIBOR) to a
  margin of 2% per annum.

  On July 30, 1997, the Company acquired DETA for 60 million Deutsche mark (U.S.
  $34.0 million), in addition to assuming debt of 117 million Deutsche mark
  (approximately U.S. $64.6 million).  The majority of such consideration was
  financed through the European Facilities Agreement.  See Notes 2 and 6 of the
  Company's Condensed Consolidated Financial Statements appearing elsewhere
  herein.

  As of September 28, 1997, the Company had $56.4 million available under its
  U.S. Credit Agreement and $55.3 million of borrowing availability under the
  Company's European and Canadian Facilities Agreements.

  As of September 28, 1997, the Company has significant NOL carryforwards in
  Europe and in the United States which are available, subject to certain
  restrictions, to offset future U.S. and European taxable income.

                                      17
<PAGE>
 
  PART II.        OTHER INFORMATION
  ---------------------------------


  Item 4.  Submission of Matters to a Vote of Security Holders

  At the Company's Annual meeting of Stockholders held on August 12, 1997, the
  stockholders elected eight directors, approved amendments to the Company's
  1996 Non-Employee Directors Stock Plan, approved the Company's 1997 Stock
  Option Plan and ratified the appointment of Arthur Andersen LLP as independent
  auditors for fiscal 1998.

   The results of the voting were as follows:

<TABLE>
<CAPTION>
 
     For Director                Granted         Withheld
     ------------                -------         --------
     <S>                       <C>              <C>       
     Arthur M. Hawkins         17,994,399         178,322
     Douglas N. Pearson        18,003,480         169,241
     Alan E. Gauthier          16,598,882       1,573,839
     Earl Dolive               17,914,703         258,018
     Robert H. Irwin           17,991,223         181,498
     Thomas J. Reilly, Jr.     17,995,280         177,441
     Arthur R. Taylor          17,984,913         187,808
     James T. Watson           18,002,450         170,271 

</TABLE> 

<TABLE> 
<CAPTION> 
 
Other proposals:                      For       Against     Abstain     No Vote
----------------                      ---       -------     -------     -------
<S>                                <C>          <C>         <C>        <C> 
Approval of amendments to the
 Company's 1996 Non-Employee
 Directors Stock Plan              17,372,278     397,907      67,999    334,537

Approval of the Company's 1997
 Stock Option Plan                 11,317,012   3,590,359      72,025  3,193,325

Ratification of appointment of
 Arthur Andersen LLP as
 independent auditors              18,045,806      83,373      43,542         --

</TABLE>

                                      18
<PAGE>
 
                                   SIGNATURE
                                   ---------


  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.



                                        EXIDE CORPORATION



  Date:   November 12, 1997             By:    /s/ Alan E. Gauthier
          -----------------                    ------------------------------
                                                Alan E. Gauthier
                                                Executive Vice President,
                                                Chief Financial Officer
                                                (Authorized Signatory)