Stoneridge Reports Third-Quarter Results
24 October 2000
Stoneridge Reports Third-Quarter Results
* Sales Down 2.1%, Net Income Down 13.3%
* Fourth-Quarter Outlook Reduced
WARREN, Ohio, Oct. 24 Stoneridge, Inc. today
announced sales of $153.8 million and earnings of $7.5 million, or $0.34 per
share, for the third quarter ended September 30, 2000.
Net sales decreased $3.2 million or 2.1 percent to $153.8 million compared
with $157.0 million for the same period in 1999. The decrease in sales
revenues is attributed primarily to the current slowdown in the commercial
vehicle markets. In addition, sales revenues were hurt by the shutdown of
three Ford factories resulting from the recent Bridgestone/Firestone tire
recall.
Net income for the third quarter of $7.5 million, or $0.34 per share,
decreased 13.3 percent compared with net income of $8.7 million, or $0.39 per
share, for the quarter ended September 30, 1999. Net income was affected by
the gain on the disposition of an idle facility and utilization of one-time
tax credits.
"Third-quarter results, while below 1999's, were in line with our
expectations considering the lower sales volume caused primarily by the
downturn in the commercial vehicle markets," said Cloyd J. Abruzzo, president
and chief executive officer. "Our aggressive cost containment efforts during
the period were offset by increased product development spending, foreign
currency issues and electronic component shortages. We remain optimistic
about our future as we received significant new business awards during the
quarter of approximately $65 million, bringing our year-to-date total to more
than $140 million."
The company also announced that prevailing market conditions will result
in fourth-quarter sales and earnings below the consensus estimate. Earnings
performance is now expected to range between $0.21 and $0.26 per share.
"Anticipating a continuation of the market slowdown in the fourth quarter,
we are proactively realigning our cost structure to partially offset the
increased product development spending required to support future revenue
growth. Our challenge is to minimize the impact of a downturn on our earnings
while continuing to build for the future," Abruzzo said.
For the nine months ended September 30, 2000 net sales were $520.7, an
increase of 1.6 percent compared with $512.7 in the same period of 1999. Net
income for the nine months ended September 30, 2000 was $31.6 million, an
increase of 3.2 percent, compared with net income of $30.7 million for the
same period in 1999.
In conjunction with the third-quarter 2000 earnings release, Stoneridge
will broadcast its conference call live over the internet on October 25, 2000
at 11:00 a.m. Eastern Time at http://www.vcall.com . In addition, a webcast replay
will be archived for 90 days at http://www.vcall.com .
Stoneridge, Inc., headquartered in Warren, Ohio, is a leading independent
designer and manufacturer of highly engineered electrical and electronic
components, modules and systems principally for the automotive, medium and
heavy-duty truck, agricultural and off-road vehicle markets. Sales in 1999
were approximately $675 million. Additional information about Stoneridge can
be found on the World Wide Web at http://www.stoneridge.com .
Statements in this release that are not historical fact are forward-
looking statements, which involve risks and uncertainties that could cause
actual events or results to differ materially from those expressed or implied
in this release. Factors that may cause actual results to differ materially
from those in the forward-looking statements include, among other factors, the
loss of a major customer, a decline in automotive, medium and heavy-duty truck
or agricultural vehicle production, the failure to achieve successful
integration of any acquired company or business, labor disputes involving the
Company or its significant customers, risks associated with conducting
business in foreign countries, or a decline in general economic conditions.
Further information concerning issues that could materially affect financial
performance related to forward-looking statements contained in this release
can be found in Stoneridge's periodic filings with the Securities and Exchange
Commission.
Stoneridge, Inc.
Consolidated Operating Results
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
Net Sales $153,764 $156,985 $520,743 $512,688
Operating Income 15,442 21,467 67,245 73,384
Earnings Before Taxes 9,487 14,141 46,253 50,709
Provision for Income Taxes 1,949 5,451 14,609 20,038
Net Income 7,538 8,690 31,644 30,671
Basic & Diluted Earnings
Per Share $0.34 $0.39 $1.41 $1.37
Weighted Average Shares
Outstanding 22,397 22,397 22,397 22,397
Condensed Balance Sheet Items
(In thousands)
September 30, December 31,
2000 1999
(Unaudited) (Audited)
Current Assets $205,580 $192,316
Property, Plant and Equipment 108,946 106,163
Total Assets 702,431 698,309
Current Liabilities 128,731 115,204
Noncurrent Portion of Term Debt 289,061 331,898
Total Liabilities 441,682 466,681
Shareholders' Equity 260,749 231,628