Stoneridge announced financial results for the third quarter ended September 30, 2015. Net sales were $162.1 million, a decrease of $8.3 million, or 4.9%, compared with $170.3 million for the third quarter of 2014.
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Third-quarter sales were negatively affected by $19.8 million from unfavorable foreign currency translation for Electronics and PST. On a constant currency basis, sales increased by $11.5 million or 6.7%.
The company's Control Devices segment sales increased by $8.6 million, or 10.9%, compared with the third quarter of 2014. The sales increase in the Control Devices segment reflects continued strength in the passenger car market.
The Electronics segment sales decreased by $4.3 million, or 7.8%, compared with the third quarter of 2014. Electronics sales decreased by $4.3 million in the third quarter on a U.S. dollar basis as current-quarter net sales were negatively affected by approximately $6.6 million of foreign currency translation effects.
On a constant currency basis, Electronics' sales increased by 4.2% in the third quarter of 2015 compared with the third quarter of 2014, which reflects the continued strength in the European commercial vehicle market. (See Exhibit 2 for reconciliation of this non-GAAP financial measure.)
The company's PST business segment experienced a sales decrease of $12.7 million, or 34.3%, compared with the third quarter of 2014, due to unfavorable foreign currency exchange translation.
The Brazilian Real depreciated 67.8% to the U.S. dollar, quarter-to-quarter, which reduced U.S. dollar reported sales for PST by approximately 35.6%, or $13.2 million.
On a local currency basis, PST sales increased by 1.3% compared with the third quarter of 2014, despite being adversely affected by the continued deterioration of economic conditions in Brazil.
The earnings per diluted share from continuing operations attributable to Stoneridge, Inc. was $0.27 for the third quarter of 2015 compared with adjusted earnings per share of $0.16 in the third quarter of 2014.
The third-quarter 2014 net income from continuing operations attributable to Stoneridge, Inc. of $8.0 million, or $0.29 per diluted share, included income of $5.8 million, or $0.21 per diluted share, for a non-cash goodwill benefit for the PST business and a loss of ($0.9) million, or ($0.03) per diluted share, for debt extinguishment costs.
As of September 30, 2015, Stoneridge's consolidated cash position was $29.3 million, a decrease of $13.7 million from December 31, 2014.
Cash decreased due primarily to capital expenditures to facilitate new business programs, seasonal working capital increases and repayment of debt in Brazil. Stoneridge's Debt to Adjusted EBITDA ratio improved to 2.4x compared with 3.1x in the third quarter of 2014. ■