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Methode Electronics Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: March 1, 2012 08:00AM

Methode Electronics Inc. (MEI) filed Quarterly Report for the period ended 2012-01-28. Methode Elect-a has a market cap of $360.6 million; its shares were traded at around $9.15 with a P/E ratio of 26.3 and P/S ratio of 0.8. The dividend yield of Methode Elect-a stocks is 2.9%.



Highlight of Business Operations:

Net Sales. Consolidated net sales increased $9.9 million, or 9.7%, to $112.0 million for the three months ended January 28, 2012, from $102.1 million for the three months ended January 29, 2011. The Automotive segment net sales increased $12.7 million, or 23.9%, to $65.9 million for the third quarter of fiscal 2012, from $53.2 million for the third quarter of fiscal 2011. The Interconnect segment net sales decreased $3.3 million, or 10.1%, to $29.3 million for the third quarter of fiscal 2012, compared to $32.6 million for the third quarter of fiscal 2011. The Power Products segment net sales were flat at $13.0 million for both the third quarter of fiscal 2012 and fiscal 2011. The Other segment net sales increased $0.6 million, or 18.2%, to $3.9 million for the third quarter of fiscal 2012, as compared to $3.3 million for the third quarter of fiscal 2011. Translation of foreign operations net sales for the three months ended January 28, 2012 decreased reported net sales by $0.1 million or 0.1% due to average currency rates in the third quarter of fiscal 2012, compared to the average currency rates in the third quarter of fiscal 2011.

Net Sales. Consolidated net sales increased $29.9 million, or 9.7%, to $338.7 million for the nine months ended January 28, 2012, from $308.8 million for the nine months ended January 29, 2011. The Automotive segment net sales increased $37.1 million, or 23.3%, to $196.1 million for the first nine months of fiscal 2012, from $159.0 million for the first nine months of fiscal 2011. The Interconnect segment net sales decreased $10.7 million, or 10.3%, to $93.2 million for the first nine months fiscal 2012, compared to $103.9 million for the first nine months of fiscal 2011. The Power Products segment net sales increased $3.1 million, or 8.5%, to $39.6 million for the first nine months of fiscal 2012, as compared to $36.5 million for the first nine months of fiscal 2011. The Other segment net sales increased $0.6 million, or 6.4%, to $10.0 million for the first

Cost of Products Sold. Consolidated cost of products sold increased $33.1 million, or 13.5%, to $278.6 million for the nine months ended January 28, 2012, compared to $245.5 million for the nine months ended January 29, 2011. Consolidated cost of products sold as a percentage of sales were 82.3% for the first nine months of fiscal 2012, compared to 79.5% for the first nine months of fiscal 2011. The Automotive segment experienced costs for design, development, engineering and launch costs of $2.9 million related to new programs that will not begin production until the later part of fiscal 2013 and costs of $3.1 million related to a vendor's production and delivery issues, compared to $2.0 million in the nine months ended January 29, 2011. The Power Products segment experienced costs of $1.8 million for new product development for the nine months ended January 28, 2012, compared to $1.5 million for the nine months ended January 29, 2011, specifically for an on board charger for an electric truck. The nine months ended January 29, 2011 includes a charge of $1.3 million for negotiated program termination costs for certain products manufactured in our Malta automotive facility, as well as an inventory and equipment charge of $0.4 million, relating to the customer cancellation of certain products manufactured in the U.S. in our Power Products segment.

Selling and Administrative Expenses. Selling and administrative expenses increased by $0.5 million, or 0.9%, to $53.7 million for the nine months ended January 28, 2012, compared to $53.2 million for the nine months ended January 29, 2011. During the nine months ended January 29, 2011, we recorded an expense of $2.1 million for litigation regarding unsecured claims sold to Blue Angel LLC, related to the Delphi bankruptcy. Stock award amortization expense increased by $1.2 million, to $3.1 million for the nine months ended January 28, 2012, compared with $1.9 million for the nine months ended January 29, 2011. Selling and administrative expenses increased $0.8 million in the nine months ended January 28, 2012 due to the acquisitions of Eetrex and AMD. In addition, selling and administrative expenses increased by $0.9 million for the nine months ended January 28, 2012 due to additional support staff needed for the development of products not expected to begin production until the later part of fiscal 2013. Legal expenses decreased $0.6 million, to $4.5 million for the first nine months of fiscal 2012, compared to $5.1 million for the first nine months of fiscal 2011, primarily due to lower Delphi litigation expenses, partially offset with legal expenses related to the AMD acquisition. The first nine months of fiscal 2011 includes income of $0.5 million received for grants at one of our Malta facility. Selling and administrative expenses as a percentage of net sales decreased to 15.9% for the nine months ended January 28, 2012 from 17.2% for the nine months ended January 29, 2011.

Selling and Administrative Expenses. Selling and administrative expenses increased $1.1 million, or 5.5%, to $21.1 million for the nine months ended January 28, 2012, compared to $20.0 million for the nine months ended January 29, 2011. During the nine months ended January 29, 2011, we recorded an expense of $2.1 million for litigation regarding unsecured claims sold to Blue Angel LLC, related to the Delphi bankruptcy. Selling and administrative expenses increased $0.6 million in the nine months ended January 28, 2012 due to the acquisition of AMD. In addition, selling and administrative expenses increased by $0.9 million for the nine months ended January 28, 2012 due to additional support staff needed for the development of products not expected to begin production until the later part of fiscal 2013. Legal expenses decreased $0.6 million, to $4.5 million for the first nine months of fiscal 2012, compared to $5.1 million for the first nine months of fiscal 2011, primarily due to lower Delphi litigation expenses, partially offset with legal expenses related to the AMD acquisition. Selling and administrative expenses as a percentage of net sales were 10.8% for the nine months ended January 28, 2012 and 12.6% for the nine months ended January 29, 2011.

Read the The complete Report



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