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S STRATTEC ™ STRATTEC SECURITY CORPORATION Reports Fiscal 2021 Second Quarter Operating Results January 28 , 2021 MILWAUKEE , Jan. 28 , 2021 ( GLOBE NEWSWIRE ) -- STRATTEC SECURITY CORPORATION ( " STRATTEC " or the " Company " ) ( NASDAQ : STRT ) today reported operating results for the fiscal second quarter ended December 27 , 2020 . Net sales for the second quarter ended December 27 , 2020 were $ 127.4 million , compared to net sales of $ 106.3 million for the second quarter ended December 29 , 2019. The impact of the General Motors UAW strike reduced the prior year quarter net sales by approximately $ 7.0 million . Net income was $ 7.1 million in the current year quarter , compared to a net loss of $ 1,341,000 in the prior year quarter . Diluted earnings per share for the current year second quarter were $ 1.85 compared to diluted loss per share of $ 0.36 . The current year quarter included a customer reimbursement for engineering development costs previously incurred in prior periods that totaled $ 1,546,000 . This reimbursement was recorded as a reduction of engineering expense in the current quarter and increased our diluted earnings per share by $ 0.26 in the current year quarter in comparison to the prior year quarter . The prior year quarter also was negatively impacted by a $ 2,245,000 non - cash compensation expense charge relating to the termination of our Defined Benefit Pension Plan which reduced diluted earnings per share in the prior year quarter by $ 0.46 . For the six months ended December 27 , 2020 , the Company's net sales were $ 253.6 million compared to net sales of $ 226.2 million in the prior year six month period . The impact of the General Motors UAW strike reduced net sales in the prior six month period by approximately $ 10.0 million . Net income during the current year six month period was $ 15.1 million compared to a net loss of $ 97,000 during the prior year six month period . Diluted earnings per share were $ 3.96 during the six month period ended December 27 , 2020 compared to a diluted loss per share of $ .03 during the six month period ended December 29 , 2019. The prior year six month period was negatively impacted by a $ 4,473,000 non - cash compensation charge relating to the termination of our Defined Benefit Pension Plan mentioned above which reduced our diluted earnings per share by $ .92 in the prior year period . Net sales to each of our customers in the current year quarter and prior year quarter were as follows ( in millions ) : Fiat Chrysler Automobiles General Motors Company Ford Motor Company Tier 1 Customers Commercial and Other OEM Customers Hyundai / Kia TOTAL Three Months Ended December 27 , 2020 December 29 , 2019 $ 23.2 $ 27.2 39.0 25.4 16.8 15.3 18.7 14.7 19.6 21.4 10.1 2.3 $ 127.4 $ 106.3 Sales to Fiat Chrysler Automobiles ( FCA ) in the current year quarter decreased over the same period in the prior year quarter due primarily to lower production of the FCA minivan vehicles for which we supply components . The increase in sales to General Motors Company in the current year quarter compared to the prior year quarter related primarily to higher volumes and content on products we supply to their business , and in particular on the Chevrolet Silverado . The impact of the General Motors UAW strike resulted in lower net sales by an estimated $ 7.0 million in the prior year quarter . Sales to the Ford Motor Company increased in the current year quarter compared to the prior year quarter due primarily to higher product content in particular for the new power tailgate program on the F - 150 pickup trucks starting production during the current year quarter . Sales to Tier 1 customers increased in the current year quarter in comparison to the prior year quarter mainly due to higher sales volume on product ultimately used on General Motors and FCA vehicles . Sales to Commercial and Other OEM Customers during the current year quarter were slightly lower in comparison to the prior year quarter . These customers , along with the Tier 1 Customers , primarily represent purchasers of vehicle access control products , such as latches , fobs , driver controls and door handles that we have developed in recent years to complement our historic core business of locks and keys . The increased sales to Hyundai / Kia in the current year quarter were principally due to higher levels of production on their recently launched new Kia Sedona minivan for which we supply components . Our Gross Profit margins improved to 17.5 % in the current year quarter compared to 9.7 % in the prior year quarter . This margin improvement was generated primarily as a result of cost reductions implemented in our operations in Milwaukee , WI and at our facilities in Mexico , a favorable Mexican Peso to US dollar exchange rate affecting the cost of our Mexican operations between periods and by favorable changes in product sales mix between periods . The prior year quarter gross profit margin was reduced by 1.3 % due to a non - cash compensation charge of $ 1,376,000 relating to the termination of our Defined Benefit Pension Plan . Engineering , Selling and Administrative expenses as a percent of net sales in the current year quarter were 8.1 % compared to 11.4 % in the prior year quarter . This decrease in overall Selling , Engineering and Administrative expenses in the current year quarter compared to the prior year quarter was primarily attributed to the customer reimbursement of engineering development costs of $ 1,546,000 or 1.2 % previously mentioned in this press release , and overall improved operating expense management between periods . The prior year quarter Engineering , Selling and Administrative expenses were also higher by .8 % due to a non - cash compensation charge of $ 869,000 relating to the termination of our Defined Benefit Pension Plan .