Strattec Security Corporation Reports Fiscal Fourth Quarter Results
31 July 1997
Strattec Security Corporation Reports Fiscal Fourth Quarter Results
MILWAUKEE, Wis., July 31 -- STRATTEC SECURITY CORPORATION
today reported results for the fiscal fourth quarter and year
ended June 29, 1997.
Net sales for the three months ended June 29, 1997, were $43.1 million, an
increase of 11 percent compared to net sales of $38.9 million in the three
months ended June 30, 1996. Net income was $3.1 million, compared to
$1.6 million in the prior year quarter. Earnings per share were $.55 for the
three months ended June 29, 1997, compared to $.28 in the prior year quarter.
For the year ended June 29, 1997, net sales were $159.0 million, an
increase of 14 percent compared to net sales of $139.8 million in the prior
year. Net income was $9.8 million compared to $7.7 million in the prior
year. Earnings per share were $1.72 compared to $1.33 for the year ended
June 30, 1996.
The sales increase in the fourth quarter resulted primarily from sales to
the Ford Motor Company which increased $2.3 million and General Motors
Corporation which increased $1.7 million.
Gross margins were 22.1% in the current quarter compared to 18.3% in the
prior year quarter. Higher gross margins reflect overall improved operating
performance. Scrap and expedited freight costs were substantially lower than
1996 fourth quarter levels and also were improved compared to the Company's
March, 1997 quarter.
The market cost of zinc -- the Company's primary raw material, continued
to rise during the quarter with a resulting negative affect on gross margins.
Operating expenses were $4.8 million in the current quarter, compared to
$4.6 million in the prior year quarter. Engineering expenses in support of
current and future programs increased approximately $250,000, accounting for
the increase.
Harold M. Stratton II, President and Chief Executive Officer, commented,
"I am pleased to report financial results which demonstrate the significant
progress we have made in overcoming the performance inhibitors experienced in
late fiscal 1996 and early fiscal 1997. Efforts to refine our organization
and drive continuous improvement in our business processes have resulted in
substantial progress toward achieving the operating potential of the
business. As the organizational changes and enhancements implemented in 1997
are driven into 1998, and shifts in product mix positively influence sales, we
look forward to a strong 1998."
STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets
mechanical locks, electro-mechanical locks and related security products for
North American automotive manufacturers and is the world's largest producer of
automotive locks and keys.
Forward looking statements in this release are subject to many
uncertainties in the Company's operations and business environment. These
uncertainties include general economic conditions, demand for the Company's
products and costs of operations. Such uncertainties and other operational
matters are discussed further in the Company's quarterly and annual filings
with the Securities and Exchange Commission.
STRATTEC SECURITY CORPORATION
Results of Operations
(In thousands)
Three Months Ended Year Ended
June 29, June 30, June 29, June 30,
1997 1996 1997 1996
(unaudited)
Net Sales $ 43,078 $ 38,891 $ 159,054 $ 139,745
Cost of Goods Sold 33,576 31,779 125,735 110,514
Gross Profit 9,502 7,112 33,319 29,231
Engineering, Selling &
Administrative Expenses 4,754 4,545 17,684 16,632
Income from Operations 4,748 2,567 15,635 12,599
Interest Expense 43 104 210 363
Other Income, Net 99 38 125 308
4,804 2,501 15,550 12,544
Provision for Income Taxes 1,685 882 5,730 4,830
Net Income $ 3,119 $ 1,619 $ 9,820 $ 7,714
Earnings Per Share $ .55 $ .28 $ 1.72 $ 1.33
Average Shares Outstanding 5,669 5,785 5,716 5,785
SOURCE Strattec Security Corporation