Stoneridge Reports Second-Quarter 2008 Results

- Net Sales and Income Increase Year-over-Year

- Second-Quarter 2008 Net Income per Diluted Share Increases to $0.20, up 82% from 2007

- Company Reaffirms Full-Year 2008 Earnings Outlook of $0.75 to $0.85 Per Diluted Share

WARREN, Ohio, July 31 -- Stoneridge, Inc. today announced net sales of $213.2 million and net income of $4.7 million, or $0.20 per diluted share, for the second quarter ended June 30, 2008.

Net sales increased $29.4 million, or 16.0 percent, to $213.2 million, compared with $183.8 million for the second quarter of 2007. The increase in net sales was primarily attributable to new electronics program sales in North America, improvement in the Company's European electronics business and the impact of foreign currency translation. The effect of foreign currency translation increased second-quarter net sales by approximately $4.4 million compared with the same period in 2007. The sales increase was partially offset by continuing weakness in the North American passenger car and light truck markets.

Net income for the second quarter was $4.7 million, or $0.20 per diluted share, compared with net income of $2.7 million, or $0.11 per diluted share, in the second quarter of 2007. The increase in net income was due primarily to strong electronics sales in North America and increased joint venture earnings. Partially offsetting these favorable impacts were $3.7 million in pre-tax expenses related to the Company's previously announced restructuring initiatives and $0.3 million of pre-tax expenses related to the repurchase and retirement of $6.0 million in par value of the Company's bonds.

"We continued our improved performance in the second quarter in the face of deteriorating conditions in our North American light vehicle markets," said John C. Corey, president and chief executive officer. "This improved performance includes benefits resulting from our end-market strategy and we will continue pursuing diversity in our customers, business segments and geographic regions."

For the six months ended June 30, 2008, net sales were $416.3 million, an increase of 12.9 percent compared with $368.8 million for the six months ended June 30, 2007. Net income for the 2008 six-month period was $11.2 million, or $0.47 per diluted share, compared with $7.6 million, or $0.32 per diluted share, in the comparable 2007 period.

Net cash provided by operating activities for the six months ended June 30, 2008 was $12.6 million, compared with net cash provided of $4.0 million for the six months ended June 30, 2007. The increase of $8.6 million in cash provided by operating activities was primarily due to favorable accounts payable variances relative to the previous year.

Outlook

"Based upon our first-half performance and the current industry forecasts, we are maintaining our previously issued guidance for full-year 2008 earnings of $0.75 to $0.85 per diluted share," Corey said. "While I am encouraged by the progress we have made, the significant changes in the North American light truck and SUV market will impact our performance going forward. These market changes will continue to challenge our team and we have already begun adjusting to the new market realities."