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Methode Electronics Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: December 8, 2011 07:43AM

Methode Electronics Inc. (MEI) filed Quarterly Report for the period ended 2011-10-29. Methode Electronics Inc. has a market cap of $328.4 million; its shares were traded at around $8.87 with a P/E ratio of 18.5 and P/S ratio of 0.7. The dividend yield of Methode Electronics Inc. stocks is 3.2%.



Highlight of Business Operations:

Net Sales. Consolidated net sales increased $8.2 million, or 7.6%, to $115.9 million for the three months ended October 29, 2011, from $107.7 million for the three months ended October 30, 2010. The Automotive segment net sales increased $11.6 million, or 20.8%, to $67.5 million for the second quarter of fiscal 2012, from $55.9 million for the second quarter of fiscal 2011. The Interconnect segment net sales decreased $5.0 million, or 13.7%, to $31.5 million for the second quarter of fiscal 2012, compared to $36.5 million for the second quarter of fiscal 2011. The Power Products segment net sales increased $1.7 million, or 14.2%, to $13.7 million for the second quarter of fiscal 2012, as compared to $12.0 million for the second quarter of fiscal 2011. The Other segment net sales decreased $0.1 million, or 3.0%, to $3.2 million for the second quarter of fiscal 2012, as compared to $3.3 million for the second quarter of fiscal 2011. Translation of foreign operations net sales for the three months ended October 29, 2011 increased reported net sales by $1.0 million or 0.8% due to average currency rates in the second quarter of fiscal 2012, compared to the average currency rates in the second quarter of fiscal 2011.

Selling and Administrative Expenses. Selling and administrative expenses decreased by $2.9 million, or 13.7%, to $18.3 million for the three months ended October 29, 2011, compared to $21.2 million for the three months ended October 30, 2010. During the second quarter of fiscal 2011, we recorded an expense of $3.8 million for litigation regarding unsecured claims sold to Blue Angel LLC, related to the Delphi bankruptcy. Stock award amortization expense increased by $0.6 million, to $0.8 million in the second quarter of fiscal 2012 compared $0.2 million in the second quarter of fiscal 2011. Legal expenses increased $0.2 million, to $1.7 million for the second quarter of fiscal 2012, compared to $1.5 million for the second quarter of fiscal 2011, primarily due to higher Delphi litigation expenses and legal expenses related to the Advanced Molding and Decoration acquisition, partially offset with lower other general legal fees. The second quarter of fiscal 2011 includes income of $0.5 million received for grants at our Malta facility. Selling and administrative expenses as a percentage of net sales decreased to 15.8% for the three months ended October 29, 2011 from 19.7% for the three months ended October 30, 2010.

Selling and Administrative Expenses. Selling and administrative expenses decreased $2.1 million, or 22.8%, to $7.1 million for the three months ended October 29, 2011, compared to $9.2 million for the three months ended October 30, 2010. During the second quarter of fiscal 2011, we recorded an expense of $3.8 million for litigation regarding unsecured claims sold to Blue Angel LLC, related to the Delphi bankruptcy. Legal expenses related to the Delphi litigation increased $0.3 million, to $1.2 million for the second quarter of fiscal 2012, compared to $0.9 million for the second quarter of fiscal 2011. In addition, salary expenses and stock award amortization expense increased in the second quarter of fiscal 2012 compared to the second quarter of fiscal 2011. The second quarter of fiscal 2011 includes income of $0.5 million for grants received at our Malta facility. Selling and administrative expenses as a percentage of net sales were 10.5% for the three months ended October 29, 2011 and 16.5% for the three months ended October 30, 2010.

Net Sales. Consolidated net sales increased $20.0 million, or 9.7%, to $226.7 million for the six months ended October 29, 2011, from $206.7 million for the six months ended October 30, 2010. The Automotive segment net sales increased $24.4 million, or 23.1%, to $130.2 million for the first six months of fiscal 2012, from $105.8 million for the first six months of fiscal 2011. The Interconnect segment net sales decreased $7.3 million, or 10.3%, to $63.9 million for the first six months fiscal 2012, compared to $71.2 million for the first six months of fiscal 2011. The Power Products segment net sales increased $2.9 million, or 12.3%, to $26.5 million for the first six months of fiscal 2012, as compared to $23.6 million for the first six months of fiscal 2011. The Other segment net sales remained flat at $6.1 million for both periods. Translation of foreign operations net sales for the six months ended October 29, 2011 increased reported net sales by $3.7 million or 1.7% due to average currency rates in the first six months of fiscal 2012, compared to the average currency rates in the first six months of fiscal 2011.

Selling and Administrative Expenses. Selling and administrative expenses decreased by $0.7 million, or 1.9%, to $36.8 million for the six months ended October 29, 2011, compared to $37.5 million for the six months ended October 30, 2010. During the six months ended October 30, 2010, we recorded an expense of $3.8 million for litigation regarding unsecured claims sold to Blue Angel LLC, related to the Delphi bankruptcy. Stock award amortization expense increased by $1.5 million, to $2.0 million for the six months ended October 29, 2011 compared $0.5 million for the six months ended October 30, 2010. Selling and administrative expenses increased $0.5 million in the six months ended October 29, 2011 due to the acquisitions of Eetrex and Advanced Molding and Design. Legal expenses increased $0.3 million, to $3.6 million for the first six months of fiscal 2012, compared to $3.3 million for the first six months of fiscal 2011, primarily due to higher Delphi litigation expenses and legal expenses related to the Advanced Molding and Decoration acquisition, partially offset with lower other general legal fees. In addition, selling and administrative expenses increased by $0.7 million for the six months ended October 29, 2011 due to additional support staff needed for the development of products not expected to begin production until fiscal 2013. The first six months of fiscal 2011 includes income of $0.5 million received for grants at one of our Malty facility. Selling and administrative expenses as a percentage of net sales decreased to 16.2% for the six months ended October 29, 2011 from 18.1% for the six months ended October 30, 2010.

Read the The complete Report



Stocks Discussed: MEI,
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