Thu, Sep 5, 9:23 PM (131 days ago)
STRATTEC Security Corporation reported significant financial improvements for the fiscal year ended June 30, 2024. Net sales increased to $537.8 million from $492.9 million in 2023, driven by $32.7 million in price increases and a 2.5% rise in underlying sales. Net income rose to $16.3 million from a loss of $6.7 million, reflecting improved margins despite challenges in manufacturing costs due to wage increases and a weaker U.S. dollar. Operating expenses decreased, primarily due to higher engineering cost reimbursements. The company's strategic restructuring, including the sale of its interest in VAST LLC, allows for focused growth in North America and enhancements in electric vehicle-related products. Key risks include reliance on major customers (GM, Ford, Stellantis) for 66% of net sales, ongoing supply chain disruptions, and inflationary pressures. Looking ahead, STRATTEC anticipates modest growth in North American vehicle production, with a forecasted increase in vehicle builds. The company plans to invest approximately $15 million in capital expenditures for fiscal 2025 to support new product programs.