Milwaukee-based Strattec Security Corp. reported fourth flat fourth quarter profits, and a slight dip in profits for the full fiscal year.
Fourth quarter net income was $3.2 million, about the same as the fourth quarter of 2012, and net income for the full fiscal year was $11.5 million, down 6 percent from $12.25 million in fiscal 2012.
However, the company’s sales were up for the fourth quarter and the fiscal year. Net sales for the fourth quarter were $80.5 million, up 5.4 percent compared to net sales of $76.4 million for the fourth quarter of fiscal 2012. Net sales for the full years were $298.2 million, up 6.8 percent from $279.2 million in fiscal 2012.
Strattec manufactures automotive access control products, including mechanical locks and keys. The company’s performance relies heavily on the stretch of the auto industry.
“We are optimistic about the projected continued growth of the automotive industry, with the average age of vehicles on the road at an all-time high,” said Frank Krejci, president and CEO of Strattec.
The company said its sales to Chrysler Group LLC were up 8.9 percent to $27.2 million in the fourth quarter and its sales to Ford Motor Company were up 30.5 percent to $12 million. Sales to General Motors were down 17.6 percent to $14.3 million in the quarter.
“Increased sales to Chrysler Group LLC in the current quarter was primarily due to higher customer vehicle production volumes and increased content on models for which we supply components,” the company said. “The reduction in sales to General Motors Company in the current quarter was primarily attributed to business we lost to other suppliers during the latter half of the 2012 model year. Increased sales to Ford Motor Company in the current quarter was largely attributed to a combination of business won with new products and higher vehicle production volumes.”