Strattec Security Corporation Reports Fiscal Q3 Results
8 April 1998
Strattec Security Corporation Reports Fiscal Third Quarter Results
MILWAUKEE, April 8 -- STRATTEC SECURITY CORPORATION
today reported operating results for the fiscal third quarter
and nine months ending March 29, 1998.
Net sales for the three months ended March 29, 1998 were $47.4 million, an
increase of 13 percent compared to net sales of $41.8 million for the three
months ended March 30, 1997. Net income was $3.8 million, compared to
$2.9 million in the prior year quarter. Basic earnings per share for the
three months ended March 29, 1998, were $.67 compared to $.51 in the prior
year quarter.
For the nine months ended March 29, 1998, net sales were $140.0 million,
an increase of 21 percent compared to net sales of $116.0 million in the prior
year period. Net income was $9.7 million compared to $6.7 million and basic
earnings per share were $1.69 compared to $1.17.
Sales to all three of STRATTEC's largest customers increased in the
current quarter compared to the prior year levels, with General Motors
Corporation increasing $2.2 million or 11 percent, Chrysler Corporation
increasing $1.1 million or 19 percent and Ford Motor Company increasing
$.5 million or 5 percent. This sales growth was primarily due to higher value
mechanical and electro-mechanical content, and in addition our sales to
Chrysler Corporation reflect their production ramp-up of newly introduced
models.
Gross profit margins were 22.4 percent in the current quarter compared to
21.6 percent in the prior year quarter. In the March 1998 quarter, the market
cost of zinc, the Company's primary raw material, was comparable to the prior
years cost but lower than the previous two quarters of the current fiscal
year.
Operating expenses were $4.7 million in the current quarter, compared to
$4.4 million in the prior year quarter.
During the March 1998 quarter 21,000 shares were repurchased under the
Company's stock repurchase program at a cost of approximately $590,000.
Harold M. Stratton II, President and Chief Executive Officer, commented,
"Our strong profitability in the March quarter reflects sales growth from
content expansion and continued improvement in operating margins. With North
American vehicle production continuing at reasonably robust levels, we expect
sales activity to continue at the current level in the fourth quarter, and
look forward to a strong finish to our fiscal year in June."
STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets
mechanical locks, electro-mechanical locks and related security products for
North American and select European automotive manufacturers.
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)
(Unaudited)
Three Months Ended Nine Months Ended
March 29, 1998March 30, 1997 March 29, 1998 March 30, 1997
Net Sales $47,420 $41,836 $140,010 $115,976
Cost of Goods Sold 36,797 32,800 110,757 92,159
Gross Profit 10,623 9,036 29,253 23,817
Engineering, Selling &
Administrative Expenses4,672 4,412 14,060 12,930
Income from Operations 5,951 4,624 15,193 10,887
Interest Income 98 2 153 2
Interest Expense - (30) (19) (167)
Other Income, Net 41 10 26 24
6,090 4,606 15,353 10,746
Provision for
Income Taxes 2,255 1,704 5,687 4,045
Net Income $3,835 $2,902 $9,666 $6,701
Earnings Per Share:
Basic $.67 $.51 $1.69 $1.17
Diluted $.65 $.50 $1.65 $1.16
Average Basic
Shares Outstanding 5,725 5,670 5,706 5,731
Average Diluted
Shares Outstanding 5,880 5,750 5,854 5,796
SOURCE Strattec Security Corporation