GM’s recall affects Strattec’s bottom line

Freeman Staff

Oct. 22, 2015

MILWAUKEE — Fewer sales to Fiat Chrysler and General Motors resulted in decreased first quarter sales and income for Strattec, according to an earnings report Thursday.

According to the report, during the first quarter that ended Sept. 27, net sales for the company were $96.5 million, compared to net sales of $122.2 million for the first quarter of last year. Net income for the current year quarter was $3.3 million, compared to net income of $9.3 million in the prior year quarter. In addition, Strattec reported that diluted earnings per share for the current year quarter were $0.90 compared to diluted earnings per share of $2.55 in the prior year quarter. 

“The lower net sales and net income for the current year quarter was anticipated and primarily attributed to a $28 million decrease in incremental service sales to General Motors for parts used to support a recall campaign that were shipped during the prior year quarter,” according to the report.

Strattec sad the decreased sales to Fiat Chrysler during the quarter were primarily because of lower customer vehicle production volume on the Dodge and Chrysler minivans. Increased sales to Ford Motor Company for the first quarter were due to increased product content on locksets and latches, in particular for the new F-150 pick-up truck. 

The gross profit margin for Strattec was 17.1 percent in the current year quarter compared to 23 percent in the prior year quarter.