Strattec Security Corp. (STRT, Financial) filed Quarterly Report for the period ended 2010-12-26.
Strattec Sec Cp has a market cap of $103.1 million; its shares were traded at around $31.4 with a P/E ratio of 24.2 and P/S ratio of 0.5. Hedge Fund Gurus that owns STRT: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns STRT: Mario Gabelli of GAMCO Investors, Mario Gabelli of GAMCO Investors, PRIMECAP Management, Chuck Royce of Royce& Associates.
Net other income was $57,000 in the current quarter compared to a net loss of $77,000 in the prior year quarter. This increase was primarily due to increased Rabbi Trust gains in the current quarter as compared to the prior year quarter and a reduction in transaction losses resulting from foreign currency transactions entered into by our Mexican subsidiaries in the current quarter compared to the prior year quarter. The Rabbi Trust funds our supplemental executive retirement plan. Gains related to the Rabbi Trust totaled $134,000 in the current quarter compared to $93,000 in the prior year quarter. The investments held in the Trust are considered trading securities. Foreign currency transaction losses totaled $160,000 in the current quarter compared to $222,000 in the prior year quarter.
Net sales for the six months ended December 26, 2010 were $121.1 million compared to net sales of $93.7 million for the six months ended December 27, 2009. Sales to our largest customers overall increased in the current period compared to the prior year period levels due to higher customer vehicle production volumes. Sales to Chrysler Group LLC were $37.2 million in the current period compared to $29.3 million in the prior year period. Sales to General Motors Company were $31.1 million in the current period compared to $22.2 million in the prior year period. Included in the current period sales to General Motors were $3.0 million of sales to Nexteer Automotive, formerly a unit of Delphi Corporation, which was owned by General Motors through December 2, 2010. Sales to Ford Motor Company increased to $11.6 million in the current period compared to $8.8 million in the prior year period. Sales to Hyundai/Kia were $7.7 million in the current period compared to $7.3 million in the prior year period.
Also impacting the current period results were lower purchased raw material costs for zinc partially offset by higher purchased raw material costs for brass. The average zinc price paid per pound decreased to $0.99 in the current period from $1.13 in the prior year period. During the current period, we used approximately 5 million pounds of zinc. This resulted in decreased zinc costs of approximately $700,000 in the current period compared to the prior year period. The average brass price paid per pound increased to $3.76 in the current period from $3.12 in the prior year period. During the current period, we used approximately 520,000 pounds of brass. This resulted in increased brass costs of approximately $330,000 in the current period compared to the prior year period.
Net other income was $256,000 in the current period compared to $311,000 in the prior year period. This decrease was primarily due to decreased Rabbi Trust gains in the current period as compared to the prior year period and an increase in transaction losses resulting from foreign currency transactions entered into by our Mexican subsidiaries in the current period compared to the prior year period. The Rabbi Trust funds our supplemental executive retirement plan. Gains related to the Rabbi Trust totaled $258,000 in the current period compared to $376,000 in the prior year period. The investments held in the Trust are considered trading securities. Foreign currency transaction losses totaled $190,000 in the current period compared to $157,000 in the prior year period.
Our major customers also have significant under-funded legacy liabilities related to pension and postretirement health care obligations. The future impact of these items along with a continuing loss in their North American automotive market share to the “New Domestic” automotive manufacturers (primarily the Japanese automotive manufacturers) and/or a significant decline in the overall market demand for new vehicles may ultimately result in severe financial difficulty for these customers, including bankruptcy. If our major customers cannot fund their operations, we may incur significant write-offs of accounts receivable, incur impairment charges or require additional restructuring actions. For example, on October 8, 2005, Delphi Corporation filed for Chapter 11 bankruptcy protection. As a result, we wrote-off $1.6 million of uncollectible accounts receivable due from Delphi Corporation. This directly reduced our pre-tax net income during fiscal 2006. On April 30, 2009, Chrysler LLC filed for Chapter 11 bankruptcy protection for certain of their U.S. legal entities. During fiscal 2009, we recorded a provision for bad debts of $500,000 related to this filing, of which we subsequently recovered $421,000 of the $500,000 provision during fiscal 2010. This directly reduced our pre-tax net income during 2009 by $500,000 and increased our pre-tax income during 2010 by $421,000.
Read the The complete Report
Strattec Sec Cp has a market cap of $103.1 million; its shares were traded at around $31.4 with a P/E ratio of 24.2 and P/S ratio of 0.5. Hedge Fund Gurus that owns STRT: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns STRT: Mario Gabelli of GAMCO Investors, Mario Gabelli of GAMCO Investors, PRIMECAP Management, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Net sales for the three months ended December 26, 2010 were $61.2 million compared to net sales of $52.5 million for the three months ended December 27, 2009. Sales to our largest customers overall increased in the current quarter compared to the prior year quarter levels due to higher customer vehicle production volumes. Sales to Chrysler Group LLC were $17.6 million in the current quarter compared to $16.5 million in the prior year quarter. Sales to General Motors Company were $16.3 million in the current quarter compared to $12.3 million in the prior year quarter. Included in the current quarter sales to General Motors were $1.3 million of sales to Nexteer Automotive, formerly a unit of Delphi Corporation, which was owned by General Motors through December 2, 2010. Sales to Ford Motor Company increased to $6.1 million in the current quarter compared to $5.2 million in the prior year quarter. Sales to Hyundai/Kia were $3.4 million in the current quarter compared to $4.3 million in the prior year quarter.Net other income was $57,000 in the current quarter compared to a net loss of $77,000 in the prior year quarter. This increase was primarily due to increased Rabbi Trust gains in the current quarter as compared to the prior year quarter and a reduction in transaction losses resulting from foreign currency transactions entered into by our Mexican subsidiaries in the current quarter compared to the prior year quarter. The Rabbi Trust funds our supplemental executive retirement plan. Gains related to the Rabbi Trust totaled $134,000 in the current quarter compared to $93,000 in the prior year quarter. The investments held in the Trust are considered trading securities. Foreign currency transaction losses totaled $160,000 in the current quarter compared to $222,000 in the prior year quarter.
Net sales for the six months ended December 26, 2010 were $121.1 million compared to net sales of $93.7 million for the six months ended December 27, 2009. Sales to our largest customers overall increased in the current period compared to the prior year period levels due to higher customer vehicle production volumes. Sales to Chrysler Group LLC were $37.2 million in the current period compared to $29.3 million in the prior year period. Sales to General Motors Company were $31.1 million in the current period compared to $22.2 million in the prior year period. Included in the current period sales to General Motors were $3.0 million of sales to Nexteer Automotive, formerly a unit of Delphi Corporation, which was owned by General Motors through December 2, 2010. Sales to Ford Motor Company increased to $11.6 million in the current period compared to $8.8 million in the prior year period. Sales to Hyundai/Kia were $7.7 million in the current period compared to $7.3 million in the prior year period.
Also impacting the current period results were lower purchased raw material costs for zinc partially offset by higher purchased raw material costs for brass. The average zinc price paid per pound decreased to $0.99 in the current period from $1.13 in the prior year period. During the current period, we used approximately 5 million pounds of zinc. This resulted in decreased zinc costs of approximately $700,000 in the current period compared to the prior year period. The average brass price paid per pound increased to $3.76 in the current period from $3.12 in the prior year period. During the current period, we used approximately 520,000 pounds of brass. This resulted in increased brass costs of approximately $330,000 in the current period compared to the prior year period.
Net other income was $256,000 in the current period compared to $311,000 in the prior year period. This decrease was primarily due to decreased Rabbi Trust gains in the current period as compared to the prior year period and an increase in transaction losses resulting from foreign currency transactions entered into by our Mexican subsidiaries in the current period compared to the prior year period. The Rabbi Trust funds our supplemental executive retirement plan. Gains related to the Rabbi Trust totaled $258,000 in the current period compared to $376,000 in the prior year period. The investments held in the Trust are considered trading securities. Foreign currency transaction losses totaled $190,000 in the current period compared to $157,000 in the prior year period.
Our major customers also have significant under-funded legacy liabilities related to pension and postretirement health care obligations. The future impact of these items along with a continuing loss in their North American automotive market share to the “New Domestic” automotive manufacturers (primarily the Japanese automotive manufacturers) and/or a significant decline in the overall market demand for new vehicles may ultimately result in severe financial difficulty for these customers, including bankruptcy. If our major customers cannot fund their operations, we may incur significant write-offs of accounts receivable, incur impairment charges or require additional restructuring actions. For example, on October 8, 2005, Delphi Corporation filed for Chapter 11 bankruptcy protection. As a result, we wrote-off $1.6 million of uncollectible accounts receivable due from Delphi Corporation. This directly reduced our pre-tax net income during fiscal 2006. On April 30, 2009, Chrysler LLC filed for Chapter 11 bankruptcy protection for certain of their U.S. legal entities. During fiscal 2009, we recorded a provision for bad debts of $500,000 related to this filing, of which we subsequently recovered $421,000 of the $500,000 provision during fiscal 2010. This directly reduced our pre-tax net income during 2009 by $500,000 and increased our pre-tax income during 2010 by $421,000.
Read the The complete Report
