Strattec profits up on stronger automotive industry

Milwaukee-based vehicle access control products manufacturer Strattec Security Corp. reported fiscal 2015 second quarter net income of $6.9 million, or $1.58 per share, up from $4.7 million, or $1.09 per share, in the second quarter of 2014.

The net income increase was driven by a strengthening automotive market and foreign currency transaction gains, which totaled $1.6 million, compared with a loss of $174,000 a year ago.

Operating income was $7.9 million, up from $6.7 million in the same period a year ago.

Revenue was $101.9 million, up from $81.5 million in the second quarter of 2015.

During the quarter, Strattec significantly increased its sales to Chrysler Group LLC, General Motors Co. and Hyundai/Kia compared to the second quarter last year, which it attributed to higher vehicle production volumes and greater product content on the 2015 models of vehicles for which it supplies components.

“During the quarter, we continued to benefit from a strong automotive market and new product introductions that have resulted in growth of sales and profits compared to last year.  We began moving into two purchased facilities to expand manufacturing capacity in Juarez, Mexico and to consolidate Detroit-area sales and engineering efforts in Auburn Hills, Michigan.
 
“For calendar year 2014, shareholders experienced a total return exceeding 85%. We are extremely pleased that our overall Company performance has been recognized and appreciated.  Next month, STRATTEC will celebrate its 20th anniversary as an independent public company.  During that time, we have evolved from a North American Company with a single product to a global Company with a family of access products.  Recent efforts toward complimentary product diversification has further stimulated fresh thinking in our core business.  We are encouraged that our associates, both hourly and salaried, have responded so positively to the strategic initiatives which have influenced our current positive results. ”

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