MILWAUKEE, Jan. 27, 2011 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION (Nasdaq:STRT) today reported operating results for the fiscal second quarter ended December 26, 2010.
Net sales for the Company's second quarter ended December 26, 2010 were $61.2 million, compared to net sales of $52.5 million for the second quarter ended December 27, 2009. Net income for the period was $1.2 million, compared to net income of $844,000 in the prior year quarter. Diluted earnings per share for the period were $.37 compared to diluted earnings per share of $.26 during the prior year quarter. The higher sales and profitability for the quarter were primarily the result of increased customer production volumes.
For the six months ended December 26, 2010, net sales were $121.1 million compared to net sales of $93.7 million during the prior year period. Net income during the current year period was $2.7 million compared to net income of $1.8 million during the prior year period and diluted earnings per share were $.80 compared to diluted earnings per share of $.55.Sales to STRATTEC's largest customers overall increased in the current quarter compared to the prior year quarter levels. Sales to Chrysler Group LLC were $17.6 million in the current quarter compared to $16.5 million in the prior year quarter. Sales to General Motors Company were $16.3 million compared to $12.3 million. Sales to Ford Motor Company were $6.1 million compared to $5.2 million. However sales to Hyundai/Kia decreased to $3.4 million compared to $4.3 million in the prior year quarter. Gross profit margins were 16.3 percent in the current quarter compared to 14.6 percent in the prior year quarter. The higher gross profit margin in the current year quarter was primarily the result of favorable customer vehicle production volumes, offset by an unfavorable Mexico Peso to U.S. dollar exchange rate affecting the Company's operations in Mexico. The prior year quarter included a significant amount of premium freight costs and overtime incurred during the months of October and November 2009 to meet significantly increased production requirements from the Company's largest customers as they rebuilt retail inventories following the U.S. Government's "Cash for Clunkers" program that ended in August 2009.