Stoneridge Reports First-Quarter 2015 Results
Stoneridge, Inc. (NYSE: SRI) today announced financial results for the first quarter ended March 31, 2015.
First-quarter 2015 net sales were $162.8 million, an increase of $1.5 million, or 0.9%, compared with $161.3 million for the first quarter of 2014.
The Company’s Control Devices segment sales increased by $2.5 million, or 3.3%, and the Electronics segment sales increased by $6.3 million, or 12.7%, while the PST segment sales decreased by $7.4 million, or 21.8%, compared with the first quarter of 2014. Electronics sales in the first quarter of 2015 included $7.2 million of post-disposition sales to the Company’s former Wiring business acquired by Motherson Sumi Systems Limited (“Motherson”). Prior to the disposition, these sales were accounted for as intercompany transactions and eliminated in consolidation. Electronics sales were also negatively affected during the first quarter of 2015 by approximately $8.7 million as a result of foreign currency translation. Excluding sales to Motherson and adjusting for constant first-quarter 2014 foreign exchange rates, sales have risen 15.6%. (See Exhibit 2 for reconciliation of this non-GAAP measure. Including Motherson sales and unadjusted foreign exchange rates, Electronics segment sales increased by 12.7%.) The sales increases in the Control Devices and Electronics segments reflect continued strength in the markets the Company serves.
The Company’s PST business segment experienced a sales decrease of $7.4 million, or 21.8%, compared with the first quarter of 2014, primarily due to unfavorable foreign currency exchange translation. The Brazilian Real depreciated 20.9% to the U.S. dollar, quarter-to-quarter, which reduced U.S. dollar reported sales for PST by approximately 16.3%, or $5.5 million. PST sales were also adversely affected by the deteriorating economic conditions in Brazil. On a local currency basis, PST sales decreased by 5.5%.
The adjusted earnings per share from continuing operations attributable to Stoneridge, Inc. was $0.17 for the first quarter of 2015 (see Exhibit 1 for reconciliation of this non-GAAP measure). The first-quarter 2015 net income from continuing operations attributable to Stoneridge, Inc. of $2.5 million, or $0.09 per diluted share, included a non-cash expense of $2.2 million, or $0.08 per diluted share, for higher share-based compensation expense as a result of the share grants that vest in connection with the announced retirement of John Corey, the Company’s former President and Chief Executive Officer.