Slide 1: Stoneridge, Inc. Earnings Release Presentation
1 Stoneridge, Inc . Earnings Release Presentation October 24, 2012 Exhibit 99.2
Slide 2: Forward Looking Statements
Statements in this presentation that are not historical facts (including, but not limited to, 2012 net sales guidance) are forward - looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by the stateme
Slide 3: Forward Looking Statements (con't)
Forward Looking Statements ( con’t ) These factors should not be construed as exhaustive and should be considered with the other cautionary statements in Stoneridge’s filings with the Securities and Exchange Commission. Forward - looking statements are not guarantees of future performance; Stoneridg
Slide 4: Financial / Operational Issues & Initiatives
Financial / Operational Issues & Initiatives Rapidly Changing Business Environment • Weakness in European CV Market • Exposure to Large North American CV OEM • Weakening Brazilian Economy – GNP Growth less than 1.5% • Volatile FX Rates • Brazilian Real : Weakened from R$1.76 in 1Q12 to R$1.97 in 2Q1
Slide 5: Sales, Gross Profit, & Op Income – 3Q11 vs 3Q12
3Q11 SRI Core PST Ops PST PPA SRI $ % Net Sales 195.9 175.5 43.8 0.0 219.3 23.4 11.9% Total Cost of Goods Sold 158.4 142.0 25.7 0.3 168.0 9.6 6.1% Gross Profit 37.5 33.5 18.0 (0.3) 51.2 13.8 36.8% Gross Margin % 19.1% 19.1% 41.2% 23.4% Total Selling, General & Admin 30.5 29.1 14.2 1.3 44.6 14.2 46.5
Slide 6: Sales, Gross Profit, & Op Income – 2Q12 vs 3Q12
2Q12 SRI Core PST Ops PST PPA SRI $ % Net Sales 234.3 175.5 43.8 0.0 219.3 (15.0) (6.4)% Total Cost of Goods Sold 180.6 142.0 25.7 0.3 168.0 (12.6) (7.0)% Gross Profit 53.7 33.5 18.0 (0.3) 51.2 (2.4) (4.5)% Gross Margin % 22.9% 19.1% 41.2% 23.4% Total Selling, General & Admin 52.0 29.1 14.2 1.3 44.6
Slide 7: 2Q12 vs 3Q12 EPS Bridge
2Q12 vs 3Q12 EPS Bridge PST Impacts SRI Core TOTAL Volume 0.05 (0.26) (0.21) Mix / Direct Material 0.03 0.04 0.07 FX 0.05 0.00 0.05 SGA Drop / Cost Reduction 0.00 0.14 0.14 PST Cost Reduct / Purchase Acctg 0.10 0.00 0.10 TOTAL 0.23 (0.08) 0.15 0.02 0.10 0.14 0.05 0.07 (0.21) (0.13) 3Q12 Actual EPS P
Slide 8: Purchase Price Accounting Expense [Non Cash]
Purchase Price Accounting Expense [Non Cash] (millions) Q1 Q2 Q3 Q4 Full Year 2012 COGS / DM Inventory Write Up $1.8 $1.4 $0.0 $0.0 $3.2 COGS / Depreciation – Fixed Asset Write Up $0.4 $0.3 $0.3 $0.3 $1.3 SGA / Amortized Intangibles $1.0 $1.1 $1.4 $1.7 $5.2 TOTAL $3.2 $2.8 $1.7 $2.0 $9.7 Q1 Q2 Q3 E
Slide 9: Guidance Change
Guidance Change Jul 2012: Guidance Oct 2012: Revised Guidance SRI Core PST (2H12 Rate 2.00) Consolidated SRI Core PST (4Q12 Rate 2.05) Consolidated Sales $775 - $795 $195 - $214 $970 - $1,009 $755 - $765 $185 - $197 $940 - $962 Gross Margin % 21.0% - 22.5% 40.0% - 42.0% 24.5% - 26.5% 20.5% - 22.0% 4
Slide 10: Sales by Segment – 3Q12 vs 3Q11
Sales by Segment – 3Q12 vs 3Q11 CD ELEC PST SRI CD ELEC PST SRI Pass Car / Lt Truck 48.5 0.9 49.5 47.1 3.1 50.1 MD / HD 8.5 78.7 87.2 7.8 100.0 107.8 Ag 3.8 30.9 34.8 4.0 27.3 31.3 Other 3.9 0.1 43.8 47.8 4.2 2.5 6.7 TOTAL 64.8 110.7 43.8 219.3 63.1 132.9 0.0 195.9 201120123Q12 3Q11 CD ELEC PST SRI
Slide 11: Sales by Segment – 3Q12 vs 2Q12
Sales by Segment – 3Q12 vs 2Q12 CD ELEC PST SRI CD ELEC PST SRI Pass Car / Lt Truck 48.5 0.9 49.5 51.4 1.2 0.0 52.6 MD / HD 8.5 78.7 87.2 8.3 91.9 0.0 100.2 Ag 3.8 30.9 34.8 4.4 32.5 0.0 36.8 Other 3.9 0.1 43.8 47.8 4.5 1.7 38.5 44.7 TOTAL 64.8 110.7 43.8 219.3 68.6 127.3 38.5 234.3 3Q12 2Q12 2012 C
Slide 12: Cost Initiatives / Benefits
Cost Initatives / Benefits $ millions 1Q12 2Q12 3Q12 4Q12 FY 2012 Costs NA Wiring 0.0 0.0 (0.7) (0.4) (1.1) NA / European Instrumentation 0.0 0.0 (0.3) 0.0 (0.3) PST (0.3) (1.3) 0.0 0.0 (1.6) TOTAL (0.3) (1.3) (1.0) (0.4) (3.0) Benefits NA Wiring 0.0 0.0 0.7 1.1 1.8 NA / European Instrumentation 0.0
Slide 13: Improving Direct Material Costs in 2H12
Improving Direct Material Costs in 2H12 millions 1Q12 2Q12 1 st Half 3Q12 4Q12 2 nd Half FY 2012 Targeted Improvements Core Direct Material 56.2% 56.7% 56.4% 56.0% 54.5% 55.2% 55.9% PST Direct Material * 38.0% 37.8% 37.9% 37.0% 34.8% 35.8% 35.8% * Excludes Purchase Accounting • Commodity based mater
Slide 14: Wiring Plant Operations Improvement
Wiring Plant Operations Improvement Addressed Operating Inefficiencies of $24 million in 2011 DELIVERY Past Due Premium Freight Pieces $ % 9 months 2012 vs 9 months 2011 Current w/ all customers $(4.3) (74.7)% Labor Efficiency Mar 2011 vs. Dec 2011 Forecast 2012 Count % Count % Headcount (1,075) (17
Slide 15: North American Light Vehicle Production
13,126 15,099 2011 2012 Thousands North American Light Vehicle Production Source: IHS September 2012 3,381 3,124 3,182 3,439 3,965 3,987 3,571 3,576 (7.6)% 1.9% 8.1% 15.3% 0.6% (10.4)% 0.1% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Thousands Auto Qtr vs Qtr % ∆ ↑ 15.0% Guidance
Slide 16: N.A. Medium Duty Truck Production
166,998 185,327 2011 2012 N.A. Medium Duty Truck Production Source: LMC September 2012 (previous JD Power) 40,135 44,760 41,834 40,269 48,200 49,903 43,778 43,446 11.5% (6.5)% (3.7)% 19.7% 3.5% (12.3)% (0.8)% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 NA N.A. Qtr vs Qtr % ∆ ↑ 11
Slide 17: N.A. Heavy Duty Truck Production
255,488 284,033 2011 2012 N.A. Heavy Duty Truck Production Source: LMC September 2012 (previous JD Power) 51,501 60,569 68,482 74,936 77,779 78,298 64,355 63,601 17.6% 13.1% 9.4% 3.8% 0.7% (17.8)% (1.2)% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 NA N.A. Qtr vs Qtr % ∆ ↑ 11.2% G
Slide 18: W Europe Heavy Duty Truck Production
334,357 298,078 2011 2012 W Europe Heavy Duty Truck Production Source: LMC September 2012 (previous JD Power) 83,415 82,813 76,569 91,560 78,118 78,641 65,077 76,242 (0.7)% (7.5)% 19.6% (14.7)% 0.7% (17.2)% 17.2% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Europe Europe Qtr vs Qt
Slide 19: FX Assumptions for 4Q12
FX Assumptions for 4Q12 USD / BRL 2.05 USD / MXN 13.25 EUR / USD 1.23 Copper $4.00 / pound
Slide 20: Debt / Net Debt
Debt / Net Debt (millions USD) 4Q11 1Q12 2Q12 3Q12 E 2012 F Total Debt $267.1 $253.2 $244.9 Net Debt $188.4 $210.2 $205.8 Total Debt / EBITDA 3.5 x 1 2.75 x 2 ABL Balance $38.0 $31.0 $25.0 $11.0 $0.0 Brazil Debt $54.1 $47.2 $43.8 $35.0 $32.2 EBITDA = Operating Income + Depreciation + Amortization +
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