Stoneridge Reports Double-Digit Sales Growth in 2011 Second Quarter

WARREN, Ohio, Aug. 4, 2011 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the second quarter ended June 30, 2011.  

Second quarter 2011 net sales were $190.4 million, an increase of $24.1 million, or 14.5%, compared with $166.3 million for the second quarter of 2010. The increase in the current quarter's net sales was primarily due to higher volume in the commercial vehicle markets in both North America (60.8%) and Europe (37.4%).  

Net income for the second quarter of 2011 was $3.4 million, or $0.14 per diluted share, compared with net income of $3.8 million, or $0.16 per diluted share, in the second quarter of 2010.  Second quarter net income was negatively affected by higher costs to meet customer demands, higher commodity costs and Mexican peso-denominated costs at our Mexican wiring and instrumentation locations and the start-up of a new facility in Mexico.

For the six months ended June 30, 2011, the Company reported net sales of $383.5 million, a 22.0% increase from $314.3 million for the same period in 2010.  Net income for the first six months was $6.3 million, or $0.25 per diluted share, up from $5.7 million, or $0.24 per diluted share, for the prior-year period.

As of June 30, 2011, Stoneridge's consolidated cash position was $36.4 million, a decrease of $35.6 million from December 31, 2010, primarily due to increased working capital requirements resulting from the higher sales level and lower profitability in the Company's wiring business.

Outlook

"Our end markets continued the robust pace that we experienced in the first quarter of 2011," said John C. Corey, president and chief executive officer. "Though we continued to experience strong revenue growth in the second quarter, our gross profit conversion was at a rate below our potential.  Strong demand from the North American commercial vehicle market impacted our operational performance in our North American wiring business.  Results were also affected by higher commodity costs and the strengthening of the Mexican peso which affects Mexican peso-denominated costs.   While progress was made in reducing the operational cost for premium freight, we continue to work on improving plant efficiency at our North American wiring locations to meet the demand increase. We look for further enhanced profitability in the remaining quarters of 2011.  As we look ahead, we see positive underlying fundamentals in the markets we serve, such as commercial vehicle, agricultural/off highway and automotive, and we believe these trends will continue through 2012 and beyond. We reaffirm our previously announced guidance for full-year 2011 sales to be in the range of $750 million to $775 million."  

Conference Call on the Web

A live Internet broadcast of Stoneridge's conference call regarding 2011 second quarter results can be accessed at 11 a.m. Eastern time on Thursday, August 4, 2011, at www.stoneridge.com, which will also offer a webcast replay.

About Stoneridge, Inc.

Stoneridge, Inc., headquartered in Warren, Ohio, 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.  Additional information about Stoneridge can be found at www.stoneridge.com.

Forward-Looking Statements

Statements in this release that are not historical fact are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release.  Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant change in commercial vehicle, automotive or agricultural and off-highway vehicle production; disruption in the OEM supply chain due to bankruptcies; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company's facilities or at any of the Company's significant customers or suppliers; the ability of the Company's suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business.  In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release.  The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.  Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.

SOURCE Stoneridge, Inc.