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Strattec Security Corp. (STRT), headquartered in Milwaukee, Wisconsin, is a leading global producer of automotive locks and keys. The company designs, develops, manufactures, and markets a wide range of mechanical locks, electronically enhanced locks, and keys. Strattec also creates ignition lock housings and various access control products, such as latches, power sliding door systems, power lift gate systems, power deck lid systems, door handles, and related access control products serving North American and global automotive customers.
Strattec has an expansive reach, shipping products to locations in the United States, Canada, Mexico, Europe, South America, Korea, and China. The company ensures comprehensive aftermarket support for its customers. In addition to the automotive sector, Strattec supplies security products for the heavy truck and recreational vehicle markets, as well as precision die castings.
The company's mission is to deliver high-value mechanical, electro-mechanical, and electronic security and access control products for the global motor vehicle industry. Strattec's recent achievements include a notable increase in revenues thanks to negotiated pricing relief and higher sales to major clients like Ford Motor Company and Stellantis. Effective June 30, 2023, Strattec enhanced its financial position by selling its one-third interest in VAST LLC, which generated an $18.5 million cash inflow and provided greater operational flexibility.
Leadership transitions are also on the horizon, with Senior Vice President – Operations and Chief Operating Officer Rolando Guillot set to serve as Interim CEO starting January 1, 2024, while a national executive search firm finds a permanent successor. Long-standing President and CEO Frank Krejci, who has been with Strattec since its inception, will be stepping down, leaving a legacy of growth and stability within the company.
From a financial standpoint, Strattec has shown resilience and adaptability. The company reported significant improvements in its quarterly earnings, driven by customer pricing increases and heightened sales. For instance, the recent quarters saw earnings per share rise to $0.26 and $0.37, respectively, following periods of financial losses.
STRATTEC SECURITY CORPORATION (NASDAQ:STRT) reported net sales of $113.2 million for the fiscal second quarter ended January 1, 2023, a modest increase from $112.9 million in the previous year. However, the company recorded a net loss of $1.8 million, a decline from net income of $3.4 million a year prior, resulting in a diluted loss per share of $0.47 compared to $0.87. Increased costs due to inflation and supply chain challenges, particularly in semiconductor availability, negatively affected profitability, with gross profit margins dropping to 6.5% from 13.2%. Despite stable overall sales, the company faces ongoing pressure from higher raw material costs, especially zinc and resin.
STRATTEC SECURITY CORPORATION (NASDAQ: STRT) reported a 20% increase in net sales to $120.4 million for Q1 of fiscal 2023, compared to $100.3 million in Q1 2022. Net income rose to $128,000, matching EPS at $0.03. Sales growth was driven by improved semiconductor chip availability, particularly for General Motors and Ford. However, gross profit margins decreased to 10.4% from 12.5% due to rising materials and labor costs. The company acknowledged challenges in implementing price increases and noted ongoing supply chain issues.
STRATTEC SECURITY CORPORATION (NASDAQ:STRT) reported its fiscal Q4 and full-year results for the period ended July 3, 2022. Q4 net sales rose to $123.1 million from $110.1 million year-over-year, aided by an additional week of sales. However, net income plummeted to $391,000 vs. $2.9 million in the prior year, with diluted EPS dropping from $0.75 to $0.10, impacted by higher raw material costs and reduced output due to OEM disruptions and COVID-19. Full-year net sales declined to $452.3 million from $485.3 million, with net income at $7.0 million compared to $22.5 million last year.
STRATTEC SECURITY CORPORATION (NASDAQ:STRT) reported a net sales decline to $115.9 million for the fiscal third quarter ended March 27, 2022, down from $121.6 million year-over-year. Net income fell to $3.1 million, with diluted earnings per share dropping to $0.80 compared to $1.15. For the nine-month period, net sales were $329.2 million and net income at $6.6 million, both lower than previous periods. The decline is attributed to supply chain shortages, particularly semiconductor chips, affecting production. Gross profit margins decreased to 12.6% from 15.3% due to increased raw material costs.
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