Stoneridge Reports First-Quarter 2009 Results
WARREN, Ohio, May 1 -- Stoneridge, Inc. today announced net sales of $121.1 million and a net loss of $11.6 million, or $(0.49) per diluted share, for the first quarter ended March 31, 2009.
Net sales decreased $82.0 million, or 40.4 percent, to $121.1 million, compared with $203.1 million for the first quarter of 2008. The decrease in net sales was primarily caused by dramatically reduced production volumes in the North American passenger car/light truck market (50.9%) and the commercial vehicle markets in Europe (55.6%) and North America (41.8%), and the effect of foreign currency translation. Foreign currency translation negatively affected first-quarter net sales by approximately $7.5 million compared with the same period in 2008. The sales decrease was partially offset by the strength in the North American agricultural and off-road market.
Net loss for the first quarter was $11.6 million, or $(0.49) per diluted share, compared with net income of $6.5 million, or $0.28 per diluted share, in the first quarter of 2008. The decrease in net income was due primarily to the severe reduction in sales volume the Company experienced in many of its markets.
As of March 31, 2009, Stoneridge's consolidated cash position was $89.2 million, $3.5 million lower than the 2008 year-end balance of $92.7 million, and its ABL facility remains undrawn. Net cash provided by operating activities for the quarter ended March 31, 2009 was $1.2 million, compared with $8.6 million for the quarter ended March 31, 2008. The decrease of $7.4 million in cash provided by operating activities was primarily due to a reduction in earnings caused by the reduction in sales offset by working capital reductions.
Chrysler announced yesterday that it has filed for a quick and efficient bankruptcy. To minimize Stoneridge's exposure, the Company has filed for and has been accepted to participate in the Chrysler and General Motors U.S. Government supplier accounts receivable guarantee program.
"The decrease in production volumes globally in the first quarter was the most severe the Company has ever experienced," said John C. Corey, president and chief executive officer. "Current market conditions have caused unprecedented turmoil throughout our industry and we are managing our operations to react rapidly and adjust to quickly changing demand. Nevertheless, we are encouraged that our cost-savings initiatives that have been implemented and our available liquidity and capital structure will allow us to operate through a protracted downturn in volume and position us for the new competitive landscape once markets recover. Although the first half of 2009 will be worse than we originally expected, we continue to expect Stoneridge to be operating income and cash flow from operations positive in 2009, with improved business conditions by late third quarter and in the fourth quarter."
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2009 first-quarter results can be accessed at 1 p.m. Eastern time on Friday, May 1, 2009, at www.stoneridge.com, which will also offer a webcast replay.