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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 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.
STRATTEC SECURITY CORPORATION (NASDAQ: STRT) has appointed Tina Chang to its Board of Directors. Ms. Chang, the CEO of SysLogic Inc., brings extensive expertise in cybersecurity and technology strategies. Her insights are expected to support STRATTEC's growth in the automotive sector, particularly in innovations for electric vehicles. STRATTEC has a long-standing history in the automotive industry and has received accolades such as the General Motors Innovation Award. The company aims to meet increasing demand for secure connectivity and enhanced vehicle functionalities.
STRATTEC SECURITY CORPORATION (NASDAQ: STRT) reported its fiscal second quarter results for the period ending December 26, 2021. Net sales decreased to $112.9 million from $127.4 million the previous year. Net income fell to $3.4 million or $0.87 per diluted share, down from $7.1 million or $1.85 per diluted share last year. The decline in sales and profitability was attributed to the ongoing global semiconductor chip shortage, impacting product deliveries. The company’s gross profit margin slipped to 13.2% from 17.5% due to rising material costs and production challenges.
STRATTEC reported fiscal Q1 results for the period ending September 26, 2021, revealing net sales of $100.3 million, down from $126.2 million a year prior. Net income plummeted to $101,000 compared to $8.0 million in Q1 of the previous year, with diluted earnings per share at $0.03, down from $2.11. The decline was attributed mainly to a global semiconductor chip shortage affecting vehicle production. Despite challenges, STRATTEC maintained profitability through operational adjustments and a strong balance sheet.
STRATTEC SECURITY CORPORATION (NASDAQ:STRT) reported significant growth in its fiscal fourth quarter and full year ended June 27, 2021. Net sales for Q4 reached $110.1 million, up from $42.1 million the previous year, while net income was $2.9 million versus a net loss of $10.5 million. Full year sales also increased to $485.3 million from $385.3 million, with record net income of $22.5 million and diluted earnings per share of $5.85. However, the ongoing semiconductor chip shortage negatively affected operations.
STRATTEC SECURITY CORPORATION (NASDAQ:STRT) reported a 4.0% increase in net sales for Q3 2021, totaling $121.6 million, compared to $116.9 million in Q3 2020. Net income rose to $4.5 million, or $1.15 per diluted share, up from $3.0 million, or $0.79 per share. For the first nine months, net sales reached $375.2 million, a 9.3% increase year-over-year. Gross profit margins improved to 15.3%, attributed to manufacturing efficiencies despite supply chain disruptions. CEO Frank Krejci noted ongoing semiconductor shortages but expressed optimism about future production efficiency and cash flow sustainability.
STRATTEC SECURITY CORPORATION (NASDAQ:STRT) reported a net sales increase to $127.4 million for Q2 2020, up from $106.3 million in Q2 2019, despite a $7 million impact from the General Motors UAW strike. Net income reached $7.1 million, turning around from a loss of $1.34 million. Diluted EPS improved to $1.85 from a loss of $0.36. Gross profit margin increased to 17.5% due to operational efficiencies and favorable currency exchange rates. Notably, STRATTEC's debt-to-equity ratio decreased from 23% to 13% as $13 million in debt was repaid.
STRATTEC SECURITY CORPORATION (NASDAQ: STRT) reported a strong fiscal first quarter for the period ending September 27, 2020. Net sales increased to $126.2 million, up from $120.0 million a year earlier. Net income surged to $8.0 million compared to $1.2 million, resulting in diluted earnings per share of $2.11 versus $0.33 in the prior year. Improved gross margins of 17.8% and a decline in operating expenses contributed to positive financial performance, despite slight decreases in sales from Fiat Chrysler due to production cuts.
STRATTEC SECURITY CORPORATION (NASDAQ:STRT) reported a net loss of $10.5 million for the fourth quarter ending June 28, 2020, down from a loss of $62,000 in the previous year. Net sales plummeted to $42.1 million, significantly impacted by COVID-19, compared to $128.7 million a year earlier. The full fiscal year saw a net loss of $7.6 million, with a revenue decline to $385.3 million from $487.0 million. Diluted loss per share was $2.80 for Q4 and $2.04 for the full year, showing considerable adverse effects from pandemic-related shutdowns and an impairment charge related to a joint venture in India.
STRATTEC SECURITY CORPORATION (NASDAQ: STRT) announced on May 13, 2020, that its Board of Directors has decided to temporarily suspend the payment of its quarterly dividend amid challenging economic conditions. CEO Frank J. Krejci emphasized the importance of cash conservation for long-term sustainability. To this end, salary reductions of 10% to 25% for executives and a workforce reduction of around 10% were implemented. These measures aim to navigate the uncertainties posed by the COVID-19 pandemic while maintaining a strong financial position.
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