Tuesday, February 14, 2012WARREN, Ohio -- Stoneridge Inc. reports fourth quarter net income of $38.6 million, or $1.56 per diluted share. For the fourth quarter of 2010, net income was $4.5 million. Net income for 2011 was $49.4 million, or $2 per diluted share, compared with $11.5 million, or 47 cents per diluted share, for 2010.
Fourth-quarter 2011 net sales were $186 million, up 15.9% over the same 2010 quarter. The increase in net sales was due primarily to higher volume in the commercial vehicle market in North America. Net sales for the year totaled $765.4 million compared with $635.2 million for 2010.
The fourth-quarter net income increase primarily was a result of a $65.4 million pretax gain and a $42.5 million after-tax gain or $1.72 per share recognized in conjunction with Stoneridge's previously announced purchase of additional ownership in its Brazil-based PST joint venture.
"We experienced a difficult year in 2011 due to operational underperformance in our wiring business," said John C. Corey, president and CEO. "However, we have addressed the operating issues and have improved service levels and labor efficiency significantly. Our results for the fourth quarter, excluding the gain recognized by the PST transaction, did not meet our expectations due to costs related to legacy issues from previous restructurings, PST transaction costs and cost items associated with valuation of assets. While these costs negatively impacted the fourth quarter results, the improvements we have made in our operations will benefit us in 2012.
"We expect to return to a more normal range for gross margin based on a weaker Mexican peso, lower copper prices and operational improvements," Corey continued. "Though there are risks associated with our plan in 2012, especially in the European commercial vehicle market and other economic uncertainties, we believe sales from our existing business along with sales from the PST consolidation will be in the range of $1.060 billion to $1.12 billion with an EPS in the range of $1.10 per diluted share to $1.30 per diluted share."
Stoneridge Inc. is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the commercial vehicle, automotive and agricultural and off-highway vehicle markets.
Published by The Business Journal, Youngstown, Ohio.