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Oct. 13, 2021, 7:46 a.m. EDT

Stoneridge issues profit and sales warning for Q3 as supply chain snags and higher costs weigh on its OEM customers

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By Ciara Linnane

Stoneridge Inc. /zigman2/quotes/208765999/composite SRI +3.62% , a Novi, Michigan-based maker of electrical and electronic vehicle systems, lowered its third-quarter guidance on Wednesday, and said the continued supply chain-related challenges and higher costs had reduced production schedules for its original equipment manufacturers, or OEM, customers. The company noted an IHS Markit forecast from Sept. 16 for third-quarter worldwide automotive production suggested its weighted average end-markets declined by about 13% f relative to assumptions made on its second-quarter earnings call. "The overall transportation industry continues to be challenged by the global pandemic and its aftermath," CEO Jon DeGaynor said in a statement. "Recent production shutdowns and altered production forecasts at our automotive and commercial vehicle OEM customers, often on short notice, have created volatility and had a negative impact on our financial results for the third quarter." The company is now expecting a third-quarter loss per share of 40 cents to 34 cents, and adjusted loss per share of 29 cents to 23 cents. Sales ae expected to come in at about $180 million. The FactSet consensus is for a loss per share of 10 cents and sales of $185 million. The company has raised prices to mitigate the higher costs, where possible. Shares were down 1.5% premarket and have lost 31% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.18% has gained 16%.

/zigman2/quotes/208765999/composite
US : U.S.: NYSE
$ 22.62
+0.79 +3.62%
Volume: 160,177
Dec. 1, 2021 4:00p
P/E Ratio
47.38
Dividend Yield
N/A
Market Cap
$593.31 million
Rev. per Employee
$135,001
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/zigman2/quotes/210599714/realtime
US : S&P US
4,513.04
-53.96 -1.18%
Volume: 3.04B
Dec. 1, 2021 5:04p
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