Business
STRATTEC SECURITY CORPORATION Reports Fiscal 2024 Fourth Quarter and Full Year Operating Results
Fourth Fiscal Quarter earnings per share $2.39 vs $0.69 loss, an improvement driven by customer price increases and higher sales MILWAUKEE, Aug. 08, 2024
About this update from Strattec Security Corporation
[{"type":"text","content":"Fourth Fiscal Quarter earnings per share $2.39 vs $0.69 loss, an improvement driven by customer price increases and higher sales\nMILWAUKEE, Aug. 08, 2024 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) is a market leader of a comprehensive range of \"Smart\" Vehicle Power Access and Electronic and Security Solutions, serving the global automotive industry. Fourth Quarter Fiscal 2024 Financial Highlights Diluted earnings per share of $2.39 versus $0.69 loss last yearGross Margins expanded to 13.0% compared with 9.3% last yearRevenues increased by 8.2%, driven by pricing increases and new product sales STRATTEC President and CEO Jennifer Slater said, “The financial performance of the business continued due to improved pricing, and new product introductions which are expanding STRATTEC’s offerings to our customers. We will continue to focus on addressing persistent cost challenges and the opportunities we have to optimize our working capital and a strong balance sheet.” Fourth Quarter and Full Year Fiscal 2024 Financial Summary(Dollars in thousands, except per share data) Three Months EndedYear Ended June 30, 2024July 2, 2023June 30, 2024July 2, 2023Net Sales$143,055 $132,219 $537,766 $492,946 Gross Profit$18,567 $12,268 $65,468 $42,152 Gross Margin 13.0% 9.3% 12.2% 8.6%Operating Expenses$8,876 $10,975 $47,654 $48,241 Operating Income (Loss) from Operations$9,691 $1,293 $17,814 $(6,089)Net Income (Loss)$9,620 $(2,700)$16,313 $(6,670)Diluted Earnings (Loss) Per Share$2.39 $(0.69)$4.07 $(1.70) Fourth Quarter Financial Overview Revenue growth was driven by $6.9 million of price increases to our major customers and $3.9 million of higher sales associated with the launch of new product programs, the latter representing a 3.0% growth in sales from prior year. The growth in new product sales primarily stems from additional content of our latch and power access product lines on a major truck platform. Gross margin improvement was primarily driven by pricing increases, higher sales and lower raw material costs. Offsetting those positive trends was primarily $2.1 million of wage increases due to a mandatory Mexican minimum wage-increase, $1.7 million for increase in the company’s annual incentive bonus plan, $1.2 million higher prices paid to certain suppliers, $1.1 million of higher warranty costs, $1.0 million of increased...