Q1 2024 Stoneridge Inc Earnings Call Transcript
Key Points
- Stoneridge Inc (SRI) reported a 3% increase in first quarter sales, driven by strong growth in the Electronics segment.
- Gross margin improved by 170 basis points, operating margin by 160 basis points, and EBITDA margin by 120 basis points compared to the first quarter of last year.
- The company generated $9.1 million of operating cash, an improvement of $18.3 million compared to the first quarter of last year.
- Inventory balance was reduced by $7.9 million, contributing to an improved leverage ratio.
- Stoneridge Inc (SRI) is maintaining its full year 2024 guidance, expecting continued growth and profitability improvements.
- The company faced $2 million of incremental warranty-related costs in the quarter due to historical execution issues.
- Sales in the North American passenger vehicle end market were lower, primarily due to slowing demand for electric vehicles.
- The company experienced unfavorable impacts from foreign currency and equity interest expenses amounting to approximately $2.3 million.
- There was a slower ramp-up in aftermarket sales for the Smart tachograph program, as end users delayed adoption.
- Control Devices segment sales declined by approximately $8.7 million due to the wind down of end-of-life programs and slower demand for electric vehicle platforms.
Good day, and welcome to the StoneRiver First Quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Kelly Harvey, Director of Investor Relations. Please go ahead.
Good morning, everyone, and thank you for joining us to discuss our first quarter 2024 results. The release and accompanying presentation was filed with the SEC and is posted on our website at stoneridge.com in the Investors section under Presentations.
And joining me on today's call are Jim Zizelman, our President and Chief Executive Officer; and Matt Horvath, our Chief Financial Officer.
During today's call, we will be referring to certain non-GAAP financial measures. Please see the appendix for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.
In addition, I need to inform you that certain statements today may be forward-looking statements. Forward-looking statements include
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