STRATTEC Security Corporation Reports Fiscal First Quarter Results

Strategic Insights -

STRATTEC Security Corporation, a public company established in February 1995, has reported its fiscal first quarter results for the period ending October 1, 1995. The company's net sales increased by 23% to $27.8 million compared to $22.6 million in the same period of the previous year. Net income for the quarter was $600,000, a decrease from $1.3 million in the corresponding quarter of 1994.

Key Takeaways:

  • STRATTEC Security Corporation was established on February 27, 1995, through a tax-free spin-off from Briggs & Stratton Corporation.
  • The company's net sales increased by 23% to $27.8 million in the fiscal first quarter of 1995, compared to $22.6 million in the same period of 1994.
  • Net income for the quarter ended October 1, 1995, was $600,000, compared to $1.3 million in the year-ago quarter.
  • STRATTEC has been selected by Chrysler Corporation as the Tier I supplier of an electro-mechanical lockset for the 1998 model year, which will feature certain radio frequency immobilization technology from the Siemens Automotive Group.
  • The company has entered into a joint development agreement with Siemens to define development and supply responsibilities for this specific program.
  • Approximately one-half of the $5.3 million sales increase in the current quarter resulted from sales to the Ford Motor Company, with the remainder attributed to increased product content and lockset features.
  • Gross profit margins declined in the current quarter due to increased startup costs associated with bringing new programs into production.
  • Operating expenses increased by approximately $1 million in the current quarter compared to the prior year, with administrative expenses rising by approximately $600,000 due to the assimilation of various administrative functions.
  • Mr. Harold M. Stratton II, the President and Chief Executive Officer of STRATTEC, expressed satisfaction with the 23% sales increase and the successful launch of locksets for the Ford Taurus and Mercury Sable.

Statistics:

  • Net sales for the fiscal first quarter ended October 1, 1995, were $27.8 million, an increase of 23% compared to $22.6 million in the same period of 1994.
  • Net income for the quarter ended October 1, 1995, was $600,000, compared to $1.3 million in the year-ago quarter.
  • Gross profit margins declined from the prior year, primarily due to increased startup costs associated with bringing new programs into production.
  • Operating expenses increased by approximately $1 million in the current quarter compared to the prior year.
  • Administrative expenses increased by approximately $600,000 as the company assimilated various administrative functions previously provided by Briggs & Stratton Corporation.

Sources:

  • STRATTEC Security Corporation, PRNewswire, October 17, 1995.