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Stoneridge Posts $92.5 Million Net Loss for 2004
WARREN, Ohio -- Stoneridge Inc. today reported a net loss of $92.5 million, or $4.09 per diluted share, for 2004 and a net loss of $114.9 milion, or $5.07 per diluted share, for the fourth quarter of last year. Net sales for the year were $681.8 million and $12.2 million for the fourth quarter.Comparatively, net sales for 2003 were $606.7 million. The 12% increase in 2004 came primarily as a result of stronger performance in the company's commercial vehicle business, which more than offset the decline in traditional domestic North American light vehicle production, according to Gerald V. Pisani, president and chief executive officer.The fourth-quarter net loss includes a pre-tax, non-cash goodwill impairment charge of $183.5 million ($119.8 million after tax benefits of $63.7 million). "In view of the difficult operating environment facing North American automotive suppliers, we are pleased with our fourth-quarter performance," Pisani said."Intense competition, higher commodity prices, and customer pricing pressures are among the most significant challenges facing Stoneridge," Pisani said. "However, because we have a broad range of initiatives in place to improve our operating performance, our full-year earnings of $1.19 per diluted share, excluding the non-cash goodwill impairment charge recorded in the fourth quarter, were within the earnings range that we expected. We are cautiously optimistic that the restructuring and focused sales and marketing efforts are gaining traction."Net cash provided by operating activities for the year ended Dec. 31, 2004, was $47.3 million, compared with $72.4 million for 2003. The decrease in cash provided by operating activities was primarily due to an increase in accounts receivable resulting from the increase in sales, and an increase in inventories to prepare for new product launches and to satisfy customer requirements as the company combined three plants in the United Kingdom and started up an operation in Mexico, Pisano said."Because of the high automotive inventories carried by our North American customers, we remain cautious about the near-term business environment for this sector," Pisani noted. "We expect commercial vehicle production to remain at present levels and automotive production to be lower in the first quarter."Based on the current industry outlook, first-quarter 2005 net income is expected to be in the range of 12 cents to 20 cents per diluted share, and full-year 2005 net income to be in the range of 95 cents to $1.05.Stoneridge Inc. is an 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-highway vehicle markets.Visit Stoneridge Inc.: www.stoneridge.com"