NOVI–Stoneridge Inc. (NYSE:SRI) reported a loss of $14.1 million or 62 cents a share for 2022, compared to net income of $3.4 million or 12 cents a share in 2021. Revenue was $899.9 million, up from $770.5 million a year earlier.
The main reason for the loss–a sharp jump in the cost of goods sold, to $725 million in 2022, up from $603.6 million in 2021.
Stoneride manufactures and electronic systems, components and modules for the automotive, commercial, off-highway and agricultural vehicle markets. More at www.stoneridge.com.
President and CEO Jim Zizelman said: “During the fourth quarter we continued to experience volatility in several of our primary end-markets. Rising COVID-19 infections in China and continued production volatility with our North American passenger car customers led to reduced fourth quarter production. We also had material constraints that reduced sales in our off-highway business that limited our ability to meet our expectations for reducing short-term backlog as quickly as we had previously expected. That said, these issues appear to be easing as we move into 2023, and we are beginning to recoup some of the production losses we saw in the fourth quarter. Despite continued macroeconomic challenges in 2022, we believe we successfully managed the volatility and set ourselves up for stronger performance in 2023. We negotiated significant price increases with our customers to offset material and labor cost headwinds we continued our focus on cost management and operational efficiencies that will contribute to improved operating performance in 2023.”
The company projected 2023 sales of $960 million to $990 million and adjusted earnings per share of a loss of 10 cents a share to income of 10 cents per share.