Welcome!

News Feed Item

Stoneridge Revises 2013 Earnings Guidance, Issues 2014 Guidance

WARREN, Ohio, Feb. 5, 2014 /PRNewswire/ -- 

  • Fourth-Quarter Results Impacted by Reduced Sales Volume, Lower Product Margin Sales, and Costs
  • Improved Sales and Earnings Expected for 2014
  • Reaffirms Five-Year Outlook for Net New Business

Stoneridge, Inc. (NYSE: SRI) today announced that sales and earnings for the year ended December 31, 2013 will be below previous guidance.

Sales for the year ended December 31, 2013 are now expected to be in the range of $945.0 million to $950.0 million while earnings per share are expected to be in the range of $0.55 to $0.60.  Previous guidance, which was originally published in February 2013 and reaffirmed in October 2013, projected sales in the range of $939.0 million to $974.0 million and earnings per share in the range of $0.75 to $0.95.

John Corey, President and Chief Executive Officer, commented, "Our consolidated sales will now come in at the low end of our original range.  Our PST subsidiary's sales were lower than expected due to continued weakness in the Brazilian economy, higher relative sales of audio products compared with aftermarket products, and a sales hold due to a long lead time component supplier instituted by management to protect the brand position and image."

Corey continued, "Our Wiring business continued to experience higher-than-expected costs for premium freight and labor in the fourth quarter caused by abrupt changes to production schedules, which we had expected to stabilize in the fourth quarter. In addition, higher inventory and headcount positions were necessary to meet higher expected volumes in the commercial vehicle market projected in the first half of 2014."

Corey added, "Our financial position remains strong. The company's operating cash flow less capital expenditures was approximately $18.6 million for 2013, and our cash and cash equivalents balance at year end was $62.8 million. We will provide more detail on our results during our fourth quarter 2013 conference call which will be held in early March 2014."  

Stoneridge also published its formal guidance for 2014.  Corey commented, "We expect both Control Devices and Electronics to continue their good performance supported by improvements in the PST and Wiring businesses in 2014. Though we continued to face market and customer challenges in the third and fourth quarters of 2013, we believe that the Brazilian economy should stabilize in 2014 and that new program sales will allow us to achieve the earnings improvement we are forecasting for the coming year.  In addition, we expect improved financial performance in our Wiring business, and we anticipate business conditions for our large North American commercial customer to moderate compared with 2013."

Corey continued, "Our new business pipeline, which is key to Stoneridge's growth, remains intact.  We expect net new business to be in the $175.0 million range over the next five years, driven mainly by technologically advanced, higher value-added products.  In addition, we were excited to see that our net new business sales were better than expected for 2013 by more than 20% compared to the high end of our expectations."    



2014 Guidance



Consolidated




Sales (in millions USD)


$994  -  $1,033

Gross Margin


25.5%  -  27.0%

*Operating Margin


5.3%  -  6.3%

EPS


$0.80  -  $1.00

EBITDA Margin


8.9%  -  9.8%

(Operating Margin plus depreciation, amortization)




*Includes PST $3.3 million of Non-Cash



expense related to the Purchase of PST





Reconciliation of Operating Margin to EBITDA Margin :






Operating Margin


5.3%  -  6.3%

Depreciation


3.1%  -  3.0%

Amortization


0.5%  -  0.5%

EBITDA Margin


8.9%  -  9.8%

 

About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Warren, Ohio, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the commercial vehicle, automotive and agricultural, motorcycle and off-highway vehicle markets.  Additional information about Stoneridge can be found at www.stoneridge.com.

Forward-Looking Statements
Statements in this release that are not historical fact are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release.  Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant volume change in commercial vehicle, automotive, agricultural, motorcycle and off-highway vehicle production; disruption in the OEM supply chain due to bankruptcies; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company's facilities or at any of the Company's significant customers or suppliers; the ability of the Company's suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business.  In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release.  The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.  Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.

SOURCE Stoneridge, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.