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
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...