Strattec fiscal year results affected by startup costs of new Mexican facility
Wisconsin-based locking system manufacturer Strattec Security Corp. reported US$ 108.4 million in net sales during fiscal fourth quarter and year ending July 2, 2017. The result was flat, if compared to the US$ 108.3 million from fourth fiscal year of 2016.
Net income was US$ 1.8 million in fourth fiscal quarter, more than triple if compared to US$ 584,000 in the prior year quarter.
Gross profit margins were 13.5% in the current year quarter compared to 14.0% in the prior year quarter. The slight decrease in gross profit margin in part attributed to startup costs associated with the new Leon, Mexico facility, said the company in its report.
For the fiscal year ended July 2, 2017, Strattec net sales were US$ 417.3 million compared to net sales of US$ 401.4 million during fiscal 2016. Net income for fiscal 2017 was US$ 7.2 million compared to net income of US$ 9.1 million in the prior year. Diluted earnings per share for the current year were US$ 1.96 compared to diluted earnings per share of US$ 2.51 in the prior year.
Strattec operates three manufacturing sites in Juarez, Chihuahua, and one in Leon, Guanajuato, which will begin production on a new product line within the next month, according to the company.