Strong fourth quarter revenue wasn’t enough for Milwaukee-based Strattec Security Corp. to post a gain for the full year and a non-cash impairment charge cut into earnings.
The company’s fourth quarter revenue of $108.4 million was up 10.1 percent from $98.4 million in the fourth quarter of the previous fiscal year.
But the company also reported net income of $1.8 million for the quarter, which was down 7 percent from last year. Net income attributable to the company was down 51 percent to $584,000. Earnings were down from 33 to 16 cents per diluted share.
The quarter included a $2 million impairment charge for the Strategic investment in Minda VAST Access Systems joint venture in India.
“Even though we recognized a non-cash impairment charge during the current quarter on last year’s investment in India, I still believe it strategically strengthens our VAST global footprint for maintaining existing and winning new business throughout the rest of the world,” said Frank Krejci, Strattec president and chief executive officer.
For the full fiscal year the company’s revenue was down 2.5 percent to $401.4 million.
For the quarter, Strattec reported $28.3 million in sales to Fiat Chrysler Automobiles, up $2.35 million. Sales to General Motors Co. were up $1.6 million to $21.8 million. Ford Motor Co. sales were up roughly $1 million to $19.7 million on higher sales of F-150 pick-up trucks.
Strattec also broke ground on its new painting and assembly facility in Leon, Mexico as part of a joint venture with ADAC Automotive.
The company has said that as additional auto production moves to Mexico it makes sense to have production closer to where customers are producing vehicles.