Strattec Security Corp. Business Report FY2008

Business Highlights

Financial overview (in million USD)
  FY2008 FY2007 Rate
of change(%)
Sales 159.6 167.7 (4.8) -The lower sales primarily resulted from a 12-week strike against a major supplier to General Motors Corporation and a dramatic shift in vehicle demand by consumers.
Gross profit 25.6 26.5 (3.4) -The gross profit margin was favorably impacted by lower purchased raw material costs for zinc, cost reductions resulting from the move of its service product assembly operation from its Milwaukee, Wisconsin facility to Juarez, Mexico facilities and price increases received from some of its customers to recover the higher purchased raw material costs.
Income from operations 1.6 6.3 (74.6) -
Net income 3.3 8.2 (59.8) -

-In FY2008, export sales represented 16.1% of the Company's net sales.

Sales by customer
-Sales to General Motors increased to $45.0 million in 2008 from $35.7 million in 2007. The increase was due to higher product content on certain General Motors' vehicles, the takeover of certain passenger car lockset production from another supplier and price adjustments received to partially recover raw material cost increases, which the Company experienced in 2007.

-Sales to Ford Motor Company were $19.4 million during 2008 compared to $21.0 million during 2007 due to lower Ford vehicle production volumes. Sales to Chrysler LLC decreased to $40.2 million during 2008 from $58.1 million during 2007 due to a combination of reduced component content in the products the Company supply and lower vehicle production volumes.

-Sales to Delphi Corporation were $14.9 million during 2008 compared to $18.4 million during 2007. This decrease was primarily due to reduced component content and lower production volumes, somewhat offset by price adjustments received to partially recover raw material cost increases experienced in 2007.

-The Company, in combination with Witte Automotive and Vehicle Access Systems Technology LLC (VAST), a joint venture between the Company, Witte and ADAC Automotive, has reached an agreement to acquire certain assets of Delphi's Power Products business for $7.8 million. Delphi's Power Products business designs, develops, manufactures and sells power systems to operate vehicle sliding side doors, liftgates, and trunk lids. Current customers include Chrysler, Hyundai, General Motors and Ford. The Company will acquire the North American portion of the business. Witte will acquire the European portion, and VAST will acquire the Asian portion. The Company expects to complete the acquisition before the end of 2008. (From a press release on May 27, 2008)


R&D Expenditure (in million USD)
  FY2008 FY2007 FY2006
Amount 2.9 2.2 2.3
% of sales 1.8 1.3 1.3