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Strattec Security Corp. (STRT) filed Quarterly Report for the period ended 2012-01-01.
Strattec Security Corp. has a market cap of $73 million; its shares were traded at around $22.66 with a P/E ratio of 11 and P/S ratio of 0.3. The dividend yield of Strattec Security Corp. stocks is 1.8%.
This is the annual revenues and earnings per share of STRT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of STRT.
Highlight of Business Operations:
The higher gross profit margin in the current year quarter was primarily the result of favorable customer vehicle production volumes which resulted in more favorable absorption of fixed manufacturing costs and a favorable Mexico Peso to U.S. dollar exchange rate affecting the U.S. dollar cost of our Mexican operations, which were partially offset by a less favorable product content sales mix and higher purchased raw material costs for zinc. The average U.S. dollar/Mexican peso exchange rate increased to approximately 13.70 pesos to the dollar in the current quarter from approximately 12.45 pesos to the dollar in the prior year quarter. This resulted in decreased U.S. dollar costs related to our Mexican operations of approximately $775,000 in the current year quarter compared to the prior year quarter. The average zinc price paid per pound increased to $1.07 in the current quarter from $1.01 in the prior year quarter. We have negotiated raw material price adjustment clauses with certain, but not all, of our customers to offset some of the market price fluctuations in the cost of zinc. During the current quarter, we used approximately 2.5 million pounds of zinc. Increased zinc costs, net of raw material price adjustments received from certain customers, totaled approximately $48,000 in the current quarter compared to the prior year quarter.Income from operations in the current quarter was $3.3 million compared to $1.7 million in the prior year quarter. This change was the result of the increase in sales and gross profit margin in the current year quarter over the prior year quarter as discussed above.
The higher gross profit margin in the current year period was primarily the result of favorable customer vehicle production volumes which resulted in more favorable absorption of fixed manufacturing costs and a favorable Mexico Peso to U.S. dollar exchange rate affecting the U.S. dollar cost of our Mexican operations, which were partially offset by a less favorable product content sales mix and higher purchased raw material costs for zinc and brass. The average U.S. dollar/Mexican peso exchange rate increased to approximately 13.05 pesos to the dollar in the current year period from approximately 12.60 pesos to the dollar in the prior year period. This resulted in decreased U.S. dollar costs related to our Mexican operations of approximately $500,000 in the current year period compared to the prior year period. The average zinc price paid per pound increased to $1.07 in the current period from $0.99 in the prior year period. We have negotiated raw material price adjustment clauses with certain, but not all, of our customers to offset some of the market price fluctuations in the cost of zinc. During the current period, we used approximately 5.2 million pounds of zinc. Increased zinc costs, net of raw material price adjustments received from certain customers, totaled approximately $224,000 in the current period compared to the prior year period. The average brass price paid per pound increased to $4.17 in the current year period from $3.76 in the prior year period. During the current period, we used approximately 425,000 pounds of brass. This resulted in increased brass costs of approximately $173,000 in the current year period compared to the prior year period.
Income from operations in the current year-to-date period was $6.6 million compared to $3.6 million in the prior year period. This change was the result of the increase in sales and gross profit margin in the current year-to-date period over the same period in the prior year as discussed above.
The VAST LLC investments are accounted for using the equity method of accounting. The activities related to the VAST LLC joint ventures resulted in equity loss of joint ventures to STRATTEC of approximately $312,000 during the six months ended January 1, 2012 and equity earnings of joint ventures to STRATTEC of approximately $803,000 during the six months ended December 26, 2010. During the six months ended January 1, 2012, capital contributions totaling $600,000 were made to VAST LLC in support of general operating expenses. STRATTEC’s portion of the capital contributions totaled $200,000. During the six months ended December 26, 2010, capital contributions totaling $450,000 were made to VAST LLC in support of general operating expenses. STRATTEC’s portion of the capital contributions totaled $150,000.
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