Local auto parts supplier's sales, profits down

Growing demand for commercial vehicles worldwide is expected to help.
HOWLAND -- Stoneridge, a locally based auto parts supplier, reported lower first-quarter profits and sales this year.
The company earned $3.8 million, or 16 cents a share, last quarter, compared with $4.4 million, or 19 cents a share, in the same quarter of 2005.
The company blamed the decrease on higher raw material costs, operating inefficiencies at some of its Mexican plants and price reduction on its products.
Sales last quarter were $179.6 million, compared with $180.8 million a year earlier.
Reasons for decrease
The company said the decrease primarily was the result of foreign currency rates, disappointing sales of North American vehicles and price reductions for its products.
Stoneridge makes electrical and electronic products and systems for vehicles.
It employs 6,000, with almost all of its employees located outside the Mahoning Valley.
John Corey, Stoneridge president and chief executive, said the first-quarter results represent progress because they were better than results in the second half of last year.
"We are not satisfied with our current performance levels and will continue to work diligently to build upon our first-quarter progress," he said.
He said he thinks this year's results will be helped by robust demand in the commercial vehicle market worldwide, which will offset continued weakness in the North American market.
Stoneridge reaffirmed that earnings this year are expected to be between 30 cents and 40 cents a share.