WARREN, Ohio, PRNewswire-FirstCall/ -- Stoneridge, Inc. today announced net sales of $203.1 million and net income of $6.5 million, or $0.28 per diluted share, for the first quarter ended March 31, 2008.
The improvement in first-quarter results was primarily attributable to new program sales, continuing strength in the European commercial market and a more favorable sales mix in the Company's North American electronics business. These improvements were accomplished despite a first-quarter production decline of approximately 26% in the medium- and heavy-duty truck market in North America.
Net sales increased $18.1 million, or 9.8 percent, to $203.1 million, compared with $185.0 million for the first quarter of 2007. The increase in net sales was primarily attributable to strong electronics sales in North America and Europe and the impact of foreign currency translation. The effect of foreign currency translation increased first-quarter net sales by approximately $3.8 million compared with the same period in 2007. The sales increase was partially offset by lower sales volume in the Company's North American light vehicle and commercial vehicle markets.
Net income for the first quarter was $6.5 million, or $0.28 per diluted share, compared with net income of $4.9 million, or $0.21 per diluted share, in the first quarter of 2007. The increase in net income was due primarily to strong electronics sales in North America and increased joint venture earnings. These favorable impacts were partially offset by $2.5 million in costs related to the Company's previously announced restructuring initiatives. In addition, the Company was subject to a higher effective tax rate in the 2008 first quarter which was primarily attributable to the restructuring costs associated with ceasing manufacturing operations at the Mitcheldean, UK facilities, which provided no tax benefit.
"We are encouraged by our first-quarter results given the difficult conditions in our North American markets and the magnitude of the restructuring initiatives under way," said John C. Corey, president and chief executive officer. "We are particularly pleased that our end-market diversification strategy has helped offset the weak demand in the North American light vehicle and commercial vehicle markets."
Net cash provided by operating activities for the quarter ended March 31, 2008 was $8.6 million, compared with net cash used of $(5.1) million for the quarter ended March 31, 2007. The increase of $13.7 million in cash provided by operating activities was primarily due to increased accounts payable balances in the current year.
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