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Stoneridge Nets $5.9M for First Quarter
WARREN, Ohio -- Stoneridge Inc. reports first-quarter net income of $5.9 million, or 22 cents per diluted share. This compares with net income of $2.9 million, or 12 cents per diluted share, for the first quarter of 2011.
Net sales increased 35.9% to $262.3 million compared with the year-ago quarter. The increase in net sales reflects the consolidation of the operating results of PST, the Brazilian joint venture in which the company now has a controlling interest. Excluding the results of PST in the first quarter of 2012, net sales were $208.6 million, an increase of $15.6 million, or approximately 8%, from a year ago as a result of increased production volumes in most of the company's served markets.
The increase in net income was primarily due to improved operational profitability in the wiring business, as well as more favorable copper costs and Mexican peso exchange rate compared with the first quarter of 2011, the company said.
"As we look ahead at the balance of 2012, we now see some near-term softness, especially in the Brazilian and European markets, that may impact our quarterly performance," said John C. Corey, president and CEO. "However, we still anticipate achieving our previous full-year sales guidance in the range of $1.060 billion to $1.120 billion. We remain confident in our ability to continue to improve operations and execute against our growth strategy while managing our cost structures. As a result, we are maintaining our full-year earnings guidance of $1.10 to $1.30 per diluted share."
As of March 31, Stoneridge's consolidated cash position was $42.9 million, which was $35.8 million lower than its 2011 year-end balance of $78.7 million. The change in the cash balance was primarily 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, and higher accounts receivable from increased sales.
Stoneridge Inc. is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the medium- and heavy-duty truck, automotive, motorcycle and agricultural and off-highway vehicle markets.
Published by The Business Journal, Youngstown, Ohio.