Business
STRATTEC SECURITY CORPORATION Reports Fiscal 2024 Third Quarter Operating Results
Third Fiscal Quarter earnings per share $0.37 vs $0.57 loss, an improvement driven by customer pricing increases and higher sales MILWAUKEE, May 09, 2024
About this update from Strattec Security Corporation
[{"type":"text","content":"Third Fiscal Quarter earnings per share $0.37 vs $0.57 loss, an improvement driven by customer pricing increases and higher sales\nMILWAUKEE, May 09, 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. Third Quarter Fiscal 2024 Financial Highlights Diluted earnings per share of $0.37 versus $0.57 loss last yearGross Margins expanded to 10.4% compared with 7.9% last yearRevenues increased by 10.7%, driven by pricing increases and new product sales STRATTEC Interim CEO Rolando Guillot said, “This quarter we continued to make progress on our financial performance due to improved pricing and new product introductions that 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.” Third Quarter Fiscal 2024 Financial Summary Third Quarter Ending Mar 31, 2024 Apr. 2, 2023 Inc (Dec)(Dollars in thousands, except per share data) Net Sales $140,773 $127,183 $13,590Gross Profit $14,684 $10,001 $4,683Gross Margin 10.4% 7.9% Operating Expenses $12,725 $12,485 $240Operating Income (Loss) from Operations $1,959 $(2,484) $4,443Net Income (Loss) $1,506 $(2,256) $3,762Diluted Earnings (Loss) Per Share $0.37 $(0.57) $0.94 Revenue growth was driven by $7.0 million of price increases to our major customers and $6.6 million of higher sales associated with the launch of new product programs, the latter representing a 5.2% 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 driven by pricing increases, higher sales, lower raw material costs, lower warranty costs and $384,000 of workforce and production efficiencies realized from our Mexican operations. Offsetting those positive trends were unfavorable absorption of labor and overhead costs with inventory reductions, $2.1 million of unfavorable U.S. dollar to Mexican peso exchange rate effects, $1.8 million of wage increases due to a mandatory Mexican minimum wage-increase, $1.2 million higher prices paid to certain suppliers and $778...