Strattec Security Corp. Business Report FY2007
Business Highlights
| (in
million USD) |
FY2007 | FY2006(*) | Rate
of change |
Factors |
| Sales | 167.7 | 181.2 | (7.5%) | -Declining volume from the Company's largest customers |
| Gross profit | 26.5 | 37.0 | (28.4%) | -Higher purchased raw material costs for zinc and brass. |
| Income from operations | 6.3 | 13.4 | (53.0%) | - |
| Net income | 8.2 | 12.5 | (34.4%) | - |
-In FY2007, export sales represented 18.2% of the Company's net sales.
Sales to the Company's largest customers
| (in million USD) | FY2007 | FY2006 | FY2005 | |||
| Sales | % | Sales | % | Sales | % | |
| GM | 35.7 | 21.3% | 32.9 | 18.2% | 43.2 | 22.7% |
| Ford | 21.0 | 12.5% | 27.3 | 15.1% | 32.0 | 16.8% |
| DaimlerChrysler | 58.1 | 34.6% | 58.6 | 32.3% | 51.5 | 27.1% |
| Delphi | 18.4 | 10.9% | 26.7 | 14.7% | 29.6 | 15.6% |
| Mitsubishi America | 1.9 | 1.1.% | 5.4 | 3.0% | 4.5 | 2.4% |
| Others | 32.7 | 19.6% | 30.3 | 16.7% | 29.5 | 15.4% |
| Total | 167.7 | 100.0% | 181.2 | 100.0% | 190.3 | 100% |
-Sales to General Motors Corporation
were 35.7 million USD in 2007 compared to 32.9 million USD in 2006
due to a combination of higher product content on certain General
Motors vehicles, takeover of certain passenger car lockset production
from another supplier and price adjustments received to partially
recover raw material cost increses.
-Sales to Ford Motor Company were 21.0 million USD in 2007 compared
to 27.3 million USD in 2006 due to pre-programmed price reductions
and lower Ford vehicle production volumes.
-Sales to DaimlerChrysler Corporation were essentially flat between
years at 58.1 million USD in 2007 compared to 58.6 million USD in
2006.
-Sales to Delphi Corporation were 18.4 million USD in 2007 compared
to 26.7 million USD in 2006 due primarily to lower levels of production
and lower component content.
-Sales to Mitsubishi Motor Manufacturing of America, Inc. were 1.9
million USD in 2007 compared to 5.4 million USD in 2006 due to the
previously announced phase-out of this customer relationship.
Joint Venture
-In Oct. 2006, the Company formed a joint venture with ADAC Automotive
called ADAC-STRATTEC de Mexico (ASdM) in which the Company holds
a 50.1% interest. The purpose of this joint venture is to produce
certain ADAC and the Company's products utilizing ADAC's plastic
molding expertise and the Company's assembly capability.Initial
products from this joint venture include door handle components
and exterior trim components for customers producing in Mexico.
-The Company established a sales and engineering branch office in
Tokyo with VAST Alliance partners to promote business with New Domestics
(Honda, Nissan, Toyota, etc) in North America and Europe. The branch
became operational as of January, 2007.
R&D
-Research and development activities are centered around research engineering staff called "Advanced Development Group". Projects 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.
-The Company's engineering resources are organized by product type. It has four product groups: Locks and Keys, Latches, Driver Control/Ignition Lock Housings and Electrical.Each group has engineers who design and develop products for specific applications.
R&D Expenditure
| (in million USD) | FY2007 | FY2006 | FY2005 |
| Amount | 1.5 | 2.3 | 2.0 |
| % of sales | 0.9% | 1.3% | 1.1% |