Stoneridge Announces Full-year 2013 Guidance and Fourth-Quarter 2012 Update

 Stoneridge Announces Full-year 2013 Guidance and Fourth-Quarter 2012 Update

PR Newswire

WARREN, Ohio, Feb. 7, 2013

WARREN, Ohio, Feb. 7, 2013 /PRNewswire/ --

  oImproved Profits on Minimal Sales Increases Expected in 2013
  o2012 Operational Improvements and Cost Reductions Drive Earnings
    Performance in 2013 Guidance
  oProvides Estimated Fourth-Quarter 2012 Results Update: Continued
    Improvement over Second and Third Quarters
  oStrong Cash Flow and Debt Reduction – Significant Accomplishments in 2012

Stoneridge, Inc. (NYSE: SRI) today announced that it expects 2013 sales to be
in the range of $939 million to $974 million and earnings per share to be in
the range of $0.75 to $0.95 per share. See financial schedule below: 

2013 Sales and Earnings Guidance:

                                               2013 Guidance
                                               PST
                                 Stoneridge    (assumed exchange
                                               rate
                                 Core          2.05BRL/USD for   Consolidated
                                               2013)
Sales(in millions USD)           $765 - $786   $174 - $184       $939 - $974
Gross Margin                     21.5% - 23.0% 44.0% - 47.0%     25.5% - 27.0%
Operating Margin                 4.5% - 5.5%   4.5% - 5.5%*      4.5% - 5.5%*
EPS                                                              $.75 - $.95*
EBITDA Margin                                                    8.4% - 9.2%
(Operating Margin plus
depreciation, amortization)
                                 *includes PST $6.0 million of Non-Cash
                                 Depreciations and Amortization related to the
                                 Purchase of PST
Reconciliation of Operating
Margin to EBITDA Margin :
Operating Margin                                                 4.5% - 5.5%
Depreciation                                                     3.3% - 3.1%
Amortization                                                     0.6% - 0.6%
EBITDA Margin                                                    8.4% - 9.2%

"Though the markets we serve remain uncertain, we expect the improved earnings
on a minimal sales increase in 2013 to result largely from the cost actions
implemented in 2012 and the continuous operating improvements we are driving
in all of our operations," said John C. Corey, President and Chief Executive
Officer. "We expect our sales and earnings cadence to be stronger in the
latter half of 2013 as our major markets improve. We also expect our
first-half earnings performance in 2013 to exceed our first-half earnings
performance in 2012, though on a lower sales level. We remain cautiously
optimistic about our markets and enthusiastic about our ability to deliver
improved earnings performance and strong cash flow. Our long-term growth
opportunities remain intact as we have the right strategy, people and
investments in place to support our plans for future growth and are positive
about 2013 financial and operational results."

Fourth-Quarter Update:

"We finished 2012 with strong cash flow and we have exceeded our debt
reduction targets. We finished the year generating approximately $49.3
million in free cash flow (cash flow from operations less capital
expenditures) and our debt reduction in 2012 was approximately $65.7 million;
$38.0 million from our asset-based lending facility in the U.S. and the
remaining $27.7 million primarily from PST debt," Corey said.

"We continued to see improvement in the fourth quarter compared with the
second and third quarters. We currently estimate fourth-quarter sales to
approximate $224.0 million and earnings per share to be in the range of $0.10
to $0.14 per diluted share, which are below our expectations and our
previously published guidance, due primarily to a slower recovery in the
Brazilian market than anticipated," Corey noted. "The Company's margins were
also affected by lower-than-expected sales in its core businesses (Electronics
and Control Devices segments), primarily in its European operations, as
European OEMs extended their holiday shutdown longer than we expected, but
both gross margin and operating margin continued to improve in the fourth
quarter compared with the second and third quarters."

Corey added, "We continued to see improvement in PST's sales and earnings in
the fourth quarter. Sales increased by about 6% over the third quarter but
were affected by continued weakness in GDP growth in Brazil, which was in the
1.0% to 1.2% range. However, due to the lower-than-expected sales and the
corresponding drop in operating income at PST, most of the variance from our
consolidated guidance was attributed to our PST operation. We believe that
with the cost initiatives that have been implemented and an improving
Brazilian market, PST will improve at the operating income line with 2013
sales being equal to or down compared with 2012. Though PST has experienced
significant market headwinds this year, we are pleased with PST's response to
the changing economic conditions and look forward to improved financial
performance as the Brazilian economy improves and new product sales in cargo
tracking and home security systems are introduced. We will elaborate further
on our fourth-quarter results during our conference call scheduled for March
1, 2013."

Conference Call on the Web

A live Internet broadcast of Stoneridge's conference call regarding 2012
fourth-quarter results can be accessed at 11 a.m. Eastern Time on Friday,
March 1, 2013, at www.stoneridge.com, which will also offer a webcast replay.

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 truck, automotive,
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 or a
significant volume change of a major customer; a significant change in
commercial truck, automotive, motorcycle, agricultural or 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.

Website: http://www.stoneridge.com
Contact: Kenneth A. Kure, Corporate Treasurer and Director of Finance,
+1-330-856-2443
 
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