Strattec reports dip in net income

Strattec Security Corp. reported fiscal first quarter net income of $1.3 million, or 39 cents per share, down from $1.4 million, or 43 cents per share, in the same period a year ago.
The Milwaukee-based company’s quarterly net sales grew to $66.4 million from $59.8 million a year earlier.
Strattec designs, develops, manufactures and markets automotive access control products, including mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles and related products.
Overall sales to Strattec’s largest customers increased in the current quarter primarily due to higher customer vehicle production volumes.
Sales to Chrysler Group LLC were $19.8 million in the current quarter compared to $19.6 million in the prior year quarter. Sales to General Motors Company were $16.1 million in the current quarter compared to $14.8 million in the prior year quarter. Sales to Ford Motor Company were $8.3 million in the current quarter compared to $5.5 million in the prior year quarter. Net sales to Hyundai/Kia were $3.8 million in the current quarter compared to $4.3 million in the prior year quarter, a reduction of $0.5 million primarily due to lower vehicle production in the current quarter.
During the current quarter our joint ventures in China and Brazil both incurred relocation costs associated with moves to new facilities and start-up costs associated with a new product line.