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Despite Uncertainties, Stoneridge Sees Gains in 2013
WARREN, Ohio -- Stoneridge Inc. projects its sales this year will range somewhere between $939 million and $974 million and earnings per share somewhere between 75 and 95 cents.
For the fourth quarter, the company expects continued improvement over the second and third quarters.
John C. Corey, president and CEO, said more details will be presented during a conference call March 1.
“Though the markets we serve remain uncertain, we expect the improved earnings on a minimal sales increase in 2013 to result largely from the cost actions implemented in 2012 and the continuous operating improvements we are driving in all of our operations,” Corey said in a prepared statement. “We expect our sales and earnings cadence to be stronger in the latter half of 2013 as our major markets improve. We also expect our first-half earnings performance in 2013 to exceed our first-half earnings performance in 2012, though on a lower sales level. We remain cautiously optimistic about our markets and enthusiastic about our ability to deliver improved earnings performance and strong cash flow.
“We finished 2012 with strong cash flow and we have exceeded our debt reduction targets," he continued. “We finished the year generating approximately $49.3 million in free cash flow (cash flow from operations less capital expenditures) and our debt reduction in 2012 was approximately $65.7 million."
Fourth-quarter sales are estimated at $224 million with earnings in the range of 10 to 14 cents per diluted share, Corey said, adding that these figures are below his company’s previously published guidance, mostly as a result of a slower-than-anticipated recovery in the Brazilian market. The company's margons also were affected by lower-than-expected sales in the core electronics and control devices segments, primarily in the European operations, "but both gross margin and operating margin continued to improve in the fourth quarter compared with the second and third quarters," Corey said.
Founded in 1965, Stoneridge is a global designer and manufacturer of highly engineered electrical and electronic components, modules and systems for the commercial vehicle, automotive, agricultural and off-highway vehicle markets.
Published by The Business Journal, Youngstown, Ohio.
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