10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Stoneridge Inc. Reports Operating Results (10-Q)

August 05, 2011 | About:
insider

10qk

18 followers
Stoneridge Inc. (SRI) filed Quarterly Report for the period ended 2011-06-30.

Stoneridge Inc. has a market cap of $251.3 million; its shares were traded at around $9.5 with a P/E ratio of 17.2 and P/S ratio of 0.4.

Highlight of Business Operations:

Our second quarter 2011 results were positively affected by improvements in the North American automotive and North American and European commercial vehicle markets. Production volumes in the North American automotive vehicle market were consistent for the second quarter of 2011 with the second quarter of 2010. The automotive vehicle market production volume had a positive effect on our North American automotive vehicle market net sales of approximately $1.6 million, primarily within our Control Devices segment. The commercial vehicle market production volumes in North America improved by 60.8% during the second quarter of 2011 when compared to the prior year second quarter, which resulted in increased net sales of approximately $2.1 million, primarily within our Electronics segment. Our net sales were also favorably affected by increased European commercial vehicle production volumes of 37.4% during the second quarter of 2011 as compared to the prior year second quarter, which had a positive effect on our net sales of approximately $5.6 million, principally within the Electronics segment. Our 2011 second quarter net sales were further favorably affected by approximately $4.8 million, primarily within in the Electronics segment, due to production volume increases within the agricultural vehicle market. Our net sales to the agricultural vehicle market as a percentage of total net sales increased from 13.7% for the second quarter of 2010 to 14.9% for the second quarter of 2011. These increases in net sales were favorably affected by foreign currency exchange rates of approximately $5.8 million during the second quarter of 2011 when compared to the second quarter of 2010.

Our selling, general and administrative expenses (“SG&A”) decreased from $31.4 million for the second quarter of 2010 to $30.3 million for the second quarter of 2011. This $1.1 million, or 3.6% decrease in SG&A was due to the reduction of product development costs incurred in the current quarter. Our product development costs decreased by $2.7 million compared to the prior year. Excluding product development, our compensation and compensation related expenses increased by approximately $0.3 million from the prior year second quarter, primarily as a result of increased share-based compensation expenses.

At June 30, 2011 and December 31, 2010, we maintained a cash and equivalents balance of $36.4 million and $72.0 million, respectively. Our cash and equivalents balance declined during the current quarter as a result of increased working capital requirements including higher inventory levels at our North American wiring locations due to increased production, operating inefficiencies and the start-up of a new facility in Mexico. As discussed in Note 7 to the condensed consolidated financial statements, we had no borrowings under our asset-based credit facility and June 30, 2011. At June 30, 2011 and December 31, 2010, we had borrowing capacity of $78.5 million and $61.3 million, respectively.

Our Electronics segment was positively affected by increased volume in our served markets by approximately $11.0 million for the second quarter of 2011 when compared to the prior year second quarter. The increase in net sales for our Electronics segment was primarily due to volume increases in our North American and European commercial vehicle products. Commercial vehicle market production volumes in North America and Europe increased by 60.8% and 37.4%, respectively, during the second quarter of 2011 when compared to the prior year second quarter. The increase in North American and European commercial vehicle production positively affected net sales in our Electronics segment for the second quarter of 2011 by approximately $0.3 million, or 0.5% and $5.6 million, or 22.0%, respectively. Net sales within our Electronics segment were also favorably affected by approximately $4.3 million as a result of production volume increases in the agricultural vehicle market during the second quarter of 2011 when compared to the prior year second quarter. Electronics segment net sales also increased due to increases in net new business primarily for North American wiring products. In addition, the Electronics segment net sales were favorably affected by foreign currency fluctuations of approximately $5.8 million for the second quarter of 2011 when compared to the second quarter of 2010.

Our Control Devices segment was positively affected by increased volume in our served markets by approximately $4.6 million for the second quarter of 2011 when compared to the prior year second quarter. Production volumes in our Control Devices segment were consistent for the second quarter of 2011 with the second quarter of 2010. Volume increases within the commercial vehicle market of our Control Devices segment increased net sales for the second quarter of 2011 by approximately $1.8 million, or 33.3%, when compared to the prior year second quarter. In addition, our Control Devices net sales were approximately $1.4 million and $0.5 million higher for the second quarter of 2011, when compared to the second quarter of 2010 as a result of production volume increases within the automotive and agricultural vehicle markets.

The increase in North American net sales was primarily attributable to increased sales volume in our North American agricultural, commercial and automotive vehicle markets. These increased volume levels had a positive effect on our net sales for the second quarter of 2011 of $4.8 million, $2.1 million and $1.6 million for our North American agricultural, commercial and automotive vehicle markets, respectively. Also, North American net sales were positively impacted by increases in net new business of wiring products. Our increase in net sales outside North America was primarily due to increased sales of European commercial vehicle market products, which had a positive effect on our net sales for the second quarter of 2011 of approximately $5.6 million. In addition, our second quarter 2011 net sales outside of North America were positively affected by foreign currency fluctuations of approximately $5.7 million.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK