Strattec Security Corp. Business Report FY2006
Business Highlights
in million dollars | FY2006 | FY2005 | Rate of change (%) | Factors |
Sales | 181.2 | 190.3 | (4.8) | See Factor 1 below |
Net income | 12.5 | 15.0 | (16.7) | See Factor 2 below |
Factor 1:
-Sales to the largest customers overall declined in the current
year as compared to
the prior year.
-Sales to DaimlerChrysler Corporation increased significantly to
$58.6 million in 2006 compared to $51.5 million in 2005 due to additional
product content and higher
production volumes.
-Sales to Mitsubishi Motor Manufacturing of America, Inc. were $5.4
million in 2006 compared to $4.5 million in 2005 due to higher vehicle
production volumes and increased product content.
-Sales to Ford Motor Company were $27.3 million in 2006 compared
to $32.0 million in 2005 due to pre-programmed price reductions,
discontinued models and lower Ford vehicle production volumes on
certain vehicles.
- Sales to General Motors Corporation were $32.9 million in 2006
compared to $43.2 million in 2005 due to a combination of price
reductions, discontinued models and lower production volumes on
certain General Motors vehicles.
- Sales to Delphi Corporation were $26.7 million in 2006 compared
to $29.6 million in 2005 due primarily to pre-programmed price reductions,
lower levels of production and lower component content.
Factor 2:
-The lower net income are primarily attributed to lower production
volumes, higher purchased material costs for brass and zinc and
a less favorable Mexican peso to U.S. dollar exchange rate affecting
its Mexican operations.
-The average zinc price per pound increased to $1.01 in 2006
compared to $0.54 in 2005. During 2006 approximately 9.1 million
pounds of zinc were used. This resulted in increased zinc costs
of approximately $4.3 million in the current year over the prior
year. The average brass price per pound increased to $2.81 in 2006
from $1.94 in 2005. During 2006 approximately 1.5 million pounds
of brass were used. This resulted in increased brass costs of approximately
$1.3 million in the current year over the prior year.
-The inflation rate in Mexico for the 12 months ended June 2006
was approximately 3 percent and increased operating costs by approximately
$530,000 in the current year over the prior year. The U.S. dollar/Mexican
peso exchange rate decreased to approximately 10.80 pesos to the
dollar in 2006 from approximately 11.20 pesos to the dollar in 2005.
This resulted in increased costs related to its Mexican operations
of approximately $770,000 in the current year over the prior year.
Alliance
-In July 2005, the Company signed
a successor Agreement for the Alliance with WITTE-Velbert of Germany.
This successor to the original five-year Agreement signed in 2000
provides a more efficient framework for mutual efforts, and adds
flexibility for future initiatives that may be considered by the
partners.
-In February of 2006, the Company announced the expansion of the
Alliance and related joint venture with the addition of ADAC Plastics,
Inc. ADAC, of Grand Rapids, Michigan adds North American expertise
in door handles, a part of WITTE窶冱 core product line that
the Company could not support, and an expertise in color-matched
painting of these components which the Company believes is unique
in the world.
-With the expansion of the Alliance, the Company now has a full
range of access control related products available on a global basis
to support customer programs. To identify this powerful combination
of independent companies focused on working together, the joint
venture was renamed as Vehicle Access Systems Technology LLC (VAST
LLC, Witte and the Company each hold a 40%% interest and ADAC holds
a 20% interest), and the Alliance is now called the VAST Alliance.
(WITTE is now called WITTE Automotive, and ADAC is now doing business
as ADAC Automotive.) The Alliance has adopted a common graphic image
in which each member company shares a logo mark and colors, and
a specific logo for the Alliance itself to be used on the partners窶
printed and electronic presentation materials. VAST LLC partners
in China and Brazil are also adopting the name and image so that
VAST now truly has global brand awareness.
R&D
$ in million | FY2006 | FY2005 | FY2004 | FY2003 | FY2002 |
R&D expenditures | 2.2 | 2.0 | 1.6 | 2.4 | 2.2 |
<Structure>
-The Company's engineering resources are organized by product type.
-The Company has four product groups: Locks and Keys, Latches, Driver Control/Ignition Lock Housings and Electrical.
-Each group has an Engineering Manager and a complement of skilled engineers who design and develop products for specific applications.
-Research and development activities are centered around dedicated research engineering staff in its Advanced Development Group.
-Projects the Company is pursuing focus on electronic and mechanical access control products, modularization of related access/security control components and new manufacturing processes to reduce costs for itself and its customers.
<Technologies>
Products | Features |
Vehicle
Access Module (VAM) -The Company's Vehicle Access Module (VAM) is a unique assembly that incorporates all vehicle access functions including opening, closing, locking and unlocking vehicle doors. |
- Reduces
number of parts and assembly processes - Reduces vehicle assembly time - Provides snap-in connections for ease of assembly - Reduces potential for injuries when assembling - Allows for offline testing and adjustment - Reduces potential warranty claims - Greatly enhances security of the entire access system - Allows for greater tolerance variation within the door structure - Offers adaptability to modular and traditional door constructions |
Passive
Entry Door Latch -Featuring Pivot Shift Latch Technology, the Company's door latch is a new design that offers safety, simplicity and design flexibility. |
- Patent-Pending
Locking Mechanism provides integral Passive Entry Capability without added parts or complexity - Utilizes a single power actuator for Central Lock and Passive Entry functions - Mechanically changes lock state even when door handle is actuated - Provides all standard mechanical and electrical functions of conventional latches IMPROVED SAFETY: - Requires both mechanical AND electrical input to obtain power unlatch - Ensures that an electrical malfunction alone will not cause the door to accidentally release OPTIONAL FEATURES: - Power Child-Locking (with mechanical override) - Double-Locking - Conventional mechanical Inside Handle Override Unlocking - Speed-sensitive "Intelligent" Inside Handle Override Unlocking - Set and Slam Locking - Non-Slam Locking- Central Lock/Alarm system arm/disarm - Integral Door Ajar sensing - Onboard latch control electronics featuring LIN-bus communication |
Powered
Steering Column Lock -The Company's Powered Steering Column Lock is an electrically controlled and driven lock mechanism that secures and releases the steering column without the need for mechanical linkages. |
- Offers
simple, lightweight construction with minimal moving parts (Patent
Pending) - Utilizes robust worm drive with unidirectional rotation to maintain durability - Provides quick unlock response time - Includes low voltage onboard electronic controls with integral LIN Bus interface for reduced wire harness complexity, secure communications and integrated diagnostics capability - Utilizes Hall Effect sensors to provide reliable system status - Can be easily reconfigured for a variety of mounting applications - Includes an anti-theft security mounting pin |
Integrated
Key -A one-piece assembly combining the Remote Keyless Entry Fob and the Key Blade in a convenient, easy-to-use package. |
- Keyblade
and Keyfob in the same package - Customer convenience - Durable construction - Multiple button configurations - Vehicle brand imaging - Cost advantage OPTIONAL FEATURES: - RFID Immobilize - Fixed or Retractable Key Blade |
High Security
Freewheeling lock -The Company's Freewheeling Lock is a self-contained assembly that can be used in remote-actuation applications. -Its integrated protective enclosure and freewheeling mechanism prevent lock manipulation even in unprotected vehicle applications. |
- Patent-Pending
freewheeling mechanism to prevent forced rotation break-ins - Cable drive mechanism for remote latch operation - Completely enclosed mechanism to meet current Thatcham requirements - Integrated shutter mechanism for all-weather purposes - Flexible universal mounting OPTIONAL FEATURES: - Integrated switch assembly activated in non-freewheeling mode - Array of cable end fittings available to match any latch actuation mechanism - Grommets available for sheet metal pass-thru of actuation cable |