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STRT Strattec Security

STRATTEC Security Corp. engages in the design, development, manufacture, and market of automotive access control products. Its products include mechanical and electronically enhanced locks and keys; steering column and instrument panel ignition lock housings; latches; power sliding side doors; power lift gates; power deck lids; and door handles. The firm also offers zinc die casting, metal stamping, and metal plating. The company was founded in 1995 and is headquartered in Milwaukee, WI.

Company profile

Ticker
STRT
Exchange
CEO
Frank Joseph Krejci
Employees
Incorporated
Location
Fiscal year end
SEC CIK
IRS number
391804239

STRT stock data

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Calendar

6 May 21
24 Jun 21
28 Jun 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
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Annual (USD)
Jun 20 Jun 19 Jun 18 Jul 17
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Financial data from company earnings reports.

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
17 Feb 21 Al-Waleed H. Hamdan Common Stock, par value $.01 per share Sell Dispose S No No 58.71 2,750 161.45K 4,600
9 Feb 21 Rolando Guillot Common Stock, par value $.01 per share Sell Dispose S No No 63.12 252 15.91K 19,640
9 Feb 21 Rolando Guillot Common Stock, par value $.01 per share Option exercise Aquire M No No 25.64 252 6.46K 19,892
9 Feb 21 Rolando Guillot Common Stock Option Common Stock Option exercise Dispose M No No 25.64 252 6.46K 0
9 Feb 21 Patrick J Hansen Common Stock, par value $.01 per share Sell Dispose S No No 61.54 3,712 228.44K 9,950
8 Feb 21 Rolando Guillot Common Stock, par value $.01 per share Sell Dispose S No No 59.85 4,880 292.07K 19,640
8 Feb 21 Rolando Guillot Common Stock, par value $.01 per share Option exercise Aquire M No No 25.64 4,172 106.97K 24,520
8 Feb 21 Rolando Guillot Common Stock, par value $.01 per share Option exercise Aquire M No No 26.53 708 18.78K 20,348
8 Feb 21 Rolando Guillot Common Stock Option Common Stock Option exercise Dispose M No No 25.64 4,172 106.97K 252
8 Feb 21 Rolando Guillot Common Stock Option Common Stock Option exercise Dispose M No No 26.53 708 18.78K 0

Financial report summary

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Management Discussion
  • Sales to each of our customers or customer groups decreased in the current year as compared to the prior year. As discussed in our prior filings with the Securities and Exchange Commission, we were impacted in fiscal 2020 by the General Motors UAW strike, which reduced our net sales by approximately $10 million in the current year. Additionally, during the period late March 2020 through mid-June 2020, our OEM customers reduced production schedules and closed their assembly plants due to COVID-19.  The impact of these plant closures and resulting production schedule reductions reduced our net sales in the current year by approximately $78 million.
  • Direct material costs are the most significant component of our cost of goods sold and comprised $218.1 million or 62.3 percent of cost of goods sold in the current year compared to $280.5 million or 65.4 percent of cost of goods sold in the prior year. This dollar value decrease in our direct material costs of $62.4 million or 22.2 percent was due to decreased sales volumes in the current year as compared to the prior year and reduced scrap costs resulting from efforts to reduce nonconforming costs resulting from internal manufacturing process quality issues. The decrease in our direct material costs as a percentage of our cost of goods sold in the current year as compared to the prior year was due to reduced scrap costs and a reduction in sales of our power access products as a percentage of our consolidated sales. Power access products have a higher purchased content percentage as compared to our other products. Thus, the decreased sales mix of power access products between periods further reduced our direct material costs as a percentage of our cost of goods sold.
  • The remaining components of cost of goods sold consist of labor and overhead costs which decreased $16.9 million or 11.4 percent to $131.8 million in the current year from $148.7 million in the prior year as the variable portion of these costs decreased due to the reduction in sales volumes between years. Additionally, the decrease in labor and overhead costs in the current year as compared to the prior year was impacted by cost reduction initiatives implemented during our fiscal 2020 fourth quarter as a result of COVID-19 and the impact of a favorable Mexican peso to U.S. dollar exchange rate affecting our operations in Mexico. Cost reduction initiatives included temporary and permanent layoffs at our U.S. and Mexico locations, reductions in pay for our officers, reductions in working hours for most salaried associates, and a reduction in our U.S. salaried workforce. The U.S. dollar value of our Mexican operations was favorably impacted by approximately $2.4 million in the current year as compared to the prior year due to a favorable Mexican peso to U.S. dollar exchange rate between these annual periods. The average U.S. dollar / Mexican peso exchange rate increased to approximately 20.50 pesos to the dollar in the current year from approximately 19.34 pesos to the dollar in the prior year. These favorable impacts were partially offset by an increase in the Mexican minimum wage for our Mexican workforce, which was effective January 1, 2019 and resulted in higher costs during the six month period ended December 2019 as compared to the prior year period. Additionally, labor and overhead costs in both the current year and prior year periods included non-cash compensation expense charges related to the transfer of excess Qualified Pension Plan assets, as discussed above. These non-cash compensation expense charges increased labor and overhead costs by $3.0 million in the current year and $2.5 million in the prior year.
Content analysis
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H.S. senior Avg
New words: critical, expand, growth, half, lingering, proceeding, projected, short, Starex, unfavorable, Volkswagon
Removed: audit, installation, jurisdiction, preliminary, proceed, state