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S STRATTEC ™ STRATTEC Security Corporation Reports Fiscal 2022 First Quarter Operating Results October 21 , 2021 MILWAUKEE , Wis . , Oct. 21 , 2021 ( GLOBE NEWSWIRE ) STRATTEC SECURITY CORPORATION ( " STRATTEC " or the " Company " ) ( NASDAQ : STRT ) today reported operating results for the fiscal first quarter ended September 26 , 2021 . First Quarter Net sales for the first quarter ended September 26 , 2021 were $ 100.3 million , compared to net sales of $ 126.2 million for the first quarter ended September 27 , 2020. Net income was $ 101,000 in the current year first quarter , compared to net income of $ 8.0 million in the prior year first quarter . Diluted earnings per share for the first quarter were $ 0.03 compared to diluted earnings per share of $ 2.11 in the prior year first quarter . The current year quarter net sales and profitability were significantly impacted by the global semiconductor chip shortage that temporarily closed several of our customer's assembly plants in North America for extended periods of time resulting in significantly reduced sales during the current year quarter . Additionally , the prior year quarter tax results included a favorable tax adjustment due to changes to the Federal tax law generally referred to as the " Tax Cuts and Jobs Act of 2017 " , which reduced our income tax provision by $ 675,000 and increased our diluted earnings per share by $ 0.18 in the prior year quarter in comparison to the current year quarter . Net sales to each of our customers in the current year quarter and prior year quarter were as follows ( in thousands ) : Three Months Ended September 26 , 2021 September 27 , 2020 Stellantis / Fiat Chrysler Automobiles $ 16,560 $ 25,083 General Motors Company 25,684 37,756 Ford Motor Company 17,695 15,846 Tier 1 Customers 11,975 17,495 Commercial and Other OEM Customers 17,412 21,435 Hyundai / Kia 11,015 8,619 TOTAL $ 100,341 $ 126,234 Sales to Stellantis / Fiat Chrysler Automobiles ( FCA ) and General Motors Company in the current year quarter decreased over the same period in the prior year quarter due primarily to lower vehicle production volumes for which we supply components due to the continuing impact of the global semiconductor chip shortage . Sales to the Ford Motor Company in the current quarter increased primarily due to the increased content on the F - 150 pick - up truck for which we supply components . Tier 1 Customers and Commercial and Other OEM Customers were down in the current year quarter compared to the prior year quarter due to lower production vehicle volumes relating to the semiconductor chip shortage referenced above . Sales to Tier 1 Customers , Commercial and Other OEM 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 Carnival , formerly the Kia Sedona and Hyundai Starex minivans for which we supply components . Gross Profit margins declined to 12.5 % in the current year quarter compared to 17.8 % in the prior year quarter primarily due to lower customer vehicle production volumes , higher costs for both raw materials and purchased components , an unfavorable Mexican Peso to US dollar exchange rate affecting the cost of our Mexican operations and the mandatory minimum wage increase enacted by the Mexican Government effective January 1 , 2021 . Engineering , Selling and Administrative expenses as a percent of net sales in the current year quarter were 12.1 % compared to 9.0 % in the prior year quarter . This increase in overall operating expense spending in the current year quarter was primarily due to higher costs for our salaried work force as the prior year quarter had temporary wage reductions that we implemented to address the impact of the COVID - 19 pandemic on our operations . Included in Other ( Expense ) Income , Net in the current year quarter compared to the prior year quarter were the following items ( in thousands of dollars ) : September 26 , 2021 September 27 , 2020 Equity ( Loss ) Earnings of VAST LLC Joint Venture $ ( 251 ) $ Net Foreign Currency Transaction Gain ( Loss ) 180 825 ( 123 )