Stoneridge Reports Strong Financial Performance in Third Quarter 2011 with Sales Climbing 22%

WARREN, Ohio, Oct. 27, 2011 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the third quarter ended September 30, 2011.  

Third quarter 2011 net sales were $195.9 million, an increase of $35.5 million, or 22.1%, compared with $160.4 million for the third quarter of 2010. The increase in net sales was primarily due to higher volume in the commercial vehicle markets in both North America (55.9%) and Europe (28.1%).  

Net income for the third quarter of 2011 was $4.5 million, or $0.18 per diluted share, an increase of $3.2 million, or $0.13 per diluted share, compared with net income of $1.3 million, or $0.05 per diluted share, in the third quarter of 2010.  The increase was primarily due to the previously mentioned higher volume. Offsetting the positive impact of volume gains during the quarter were higher costs to meet customer demands, higher commodity costs and certain Mexican peso-denominated costs at the Company's North American wiring and instrumentation locations.

For the nine months ended September 30, 2011, the Company reported net sales of $579.3 million, an increase of $104.5 million, or 22.0%, compared with $474.8 million for the same period in 2010. Net income during this period increased $3.8 million, or 54.3%, to $10.8 million, or $0.44 per diluted share, compared with $7.0 million, or $0.29 per diluted share, for the first nine months of 2010.

As of September 30, 2011, Stoneridge's consolidated cash position was $43.2 million, a decrease of $28.8 million from December 31, 2010, primarily due to increased working capital requirements resulting from the higher sales.

Outlook

"We are pleased with the positive momentum we continue to build at Stoneridge," said John C. Corey, president and chief executive officer.  "Customer response to our products and technologies remains strong, as evidenced by the fact that we achieved a second consecutive quarter of record new business awards."

According to Corey, the Company continues to make good progress on its plans to improve the profitability of its wiring business. "While our progress has not been at the rate we'd prefer, we are encouraged by the steps that have been taken and the opportunities for further enhancement before us," he said. "We look for further enhanced profitability in the fourth quarter of 2011."

Corey added, "We reaffirm our previously announced guidance for full-year 2011 sales to be in the range of $750 million to $775 million.  While it's too early to have any real insight into 2012, our initial view is quite positive, as the underlying fundamentals in the markets we serve appear solid."

Conference Call on the Web

A live Internet broadcast of Stoneridge's conference call regarding 2011 third-quarter results can be accessed at 11 a.m. Eastern time on Thursday, October 27, 2011, at www.stoneridge.com, which will also offer a webcast replay.

About Stoneridge, Inc.

Stoneridge, Inc., headquartered in Warren, Ohio, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the commercial vehicle, automotive and agricultural and off-highway vehicle markets.  Additional information about Stoneridge can be found at www.stoneridge.com.

Forward-Looking Statements

Statements in this release that are not historical fact are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release.  Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant change in commercial vehicle, automotive or agricultural and off-highway vehicle production; disruption in the OEM supply chain due to bankruptcies; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company's facilities or at any of the Company's significant customers or suppliers; the ability of the Company's suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business.  In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release.  The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.  Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.

SOURCE Stoneridge, Inc.