Strattec posts higher 3Q profit despite automaker headwinds

Milwaukee-based Strattec Security Corp. today reported fiscal third quarter net income of $5.4 million, or $1.20 per share, up from $4.2 million, or $1 per share, in the third quarter of 2014.

The vehicle access control product manufacturer’s operating income was $5.9 million, up from $5.1 million in the same period a year ago.
Revenue was $88.8 million, up from $85.3 million in the third quarter of 2014.

Net sales to Chrysler Group LLC, General Motors Co. and Ford Motor Co. were all down year-over-year, but Tier 1 Customers, Commercial and Other OEM Customers, and Hyundai/Kia more than made up for the decline with higher net sales.

“I am pleased to report that we were able to continue to show modest sales growth in the current year quarter, despite the negative headwinds of a slower than anticipated ramp up in Ford’s introduction of the new F-150 pick-up trucks and a reduction of about $8 million in sales due to Chrysler’s temporary shutdown of its Windsor, Canada minivan assembly plant in order to change over to their newly designed models. The Chrysler Windsor assembly plant shutdown is expected to impact us in a similar manner in the next quarter before we begin to refill their pipeline,” said  Frank Krejci, president and chief executive officer.

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