Sales Rise 11.9% at Stoneridge in Third Quarter
WARREN, Ohio -- Stoneridge Inc. reports net sales of $219.3 million for the third quarter, up 11.9% from a year ago. Net income was $400,000, or 2 cents per diluted share, down from $4.5 million, or 18 cents per diluted share, for the third quarter of 2011.
The decrease in net income was attributed to lower sales in the commercial vehicle markets in both North America and Europe while the sales increase resulted from the consolidation of operating results of PST, the Brazilian subsidiary in which Stoneridge acquired controlling interest Dec. 31, 2011.
Lower sales also were experienced in the company's electronics business segment, including lower sales to a large North American commercial vehicle customer and European commercial vehicle customers.
For the nine months ended Sept. 30, the company reported net sales of $715.8 million, a 23.6% increase from the same period in 2011. Net income for the first nine months was $2.7 million, or 10 cents per diluted share, down from $10.8 million, or 44 cents per diluted share, for the same period a year ago.
As of Sept. 30, consolidated cash position was $35.6 million, a decrease of $43.1 million from Dec. 31. The change in the cash balance was partially the result of the $19.8 million in cash used to fund the final portion of the PST transaction, which was completed on Jan. 5. The company also has repaid $47 million of total indebtedness during the first three quarters. Stoneridge repaid $27 million on its asset-backed lending facility and PST approximately $20 million on its outstanding indebtedness.
"As we announced in our press release of Oct. 5, we have revised annual sales guidance to the range of $940.0 million to $962.0 million," said John C. Corey, president and CEO. "Each of our businesses has taken actions to mitigate a portion of the lower profitability resulting from the lower revenues, and we expect these actions to contribute to an improved performance in the fourth quarter. Though revenue for the third quarter was below our expectation, our financial performance improved compared with the second quarter despite lower revenues, partially as a result of our cost reductions, pricing actions and mix.
"Our revised guidance for gross margins in the range of 24.5% to 26.5% is near the range that we originally guided to in February," Corey continued. "Our revised expectations for operating margins in the range of 3.5% to 4.5% and earnings per share in the 35-cent to 45-cent range are consistent with our projected benefits from management's actions in response to changing market conditions. We expect to continue to reduce our debt by an estimated $14 million in the fourth quarter."
Published by The Business Journal, Youngstown, Ohio.