Stoneridge Reports Third-Quarter 2009 Results

-- Stoneridge Returns to Operating Profitability in Third Quarter

WARREN, Ohio, Oct. 29 /PRNewswire-FirstCall/ -- Stoneridge, Inc. (NYSE: SRI)
today announced net sales of $118.0 million and a net loss of $0.8 million, or
$(0.04) per diluted share, for the third quarter ended September 30, 2009.

Net sales decreased $60.4 million, or 33.9%, to $118.0 million, compared with
$178.4 million for the third quarter of 2008. The decrease in net sales was
primarily caused by dramatically reduced production volumes in the North
American passenger car/light truck market (21%) and the commercial vehicle
markets in Europe (69%) and North America (38%).

The net loss for the third quarter of 2009 was $0.8 million, or $(0.04) per
diluted share, compared with a net loss of $0.4 million, or $(0.02) per
diluted share, in the third quarter of 2008. The decrease in net income was
primarily due to the severe reduction in sales volume the Company experienced
in all of its markets. However the reduction in net income was significantly
mitigated by the benefits of previous restructuring and cost-reduction
initiatives.

Though net sales were lower than last year, Stoneridge generated an operating
profit of $2.6 million in the third quarter as restructuring and
cost-reduction programs helped offset the market reduction. As further
support for the effectiveness of its restructuring and cost-savings programs,
the Company's gross margin in the third quarter exceeded 20% for the first
time since the second quarter of 2008.

As of September 30, 2009, Stoneridge's consolidated cash position was $84.4
million, $8.3 million lower than its 2008 year-end balance of $92.7 million,
and the Company's Asset Based Lending facility remains undrawn.

For the nine months ended September 30, 2009, net sales were $341.4 million, a
decrease of 42.6% compared with $594.7 million for the nine months ended
September 30, 2008. The net loss for the nine-month period ended September
30, 2009 was $32.2 million, or $(1.37) per diluted share, compared with net
income of $10.9 million, or $0.46 per diluted share, in the comparable 2008
period.

Outlook
"The third-quarter volume declines, though severe, were less dramatic than
those in the second quarter," said John C. Corey, president and chief
executive officer. "The improvement in operating income on lower sales
volumes is very encouraging and a testament to the team's execution of our
business plan. The success of our plan execution has also allowed us to focus
on our top-line initiatives such as our recently announced 51% equity purchase
of Bolton Conductive Systems, LLC. We continue to pursue other opportunities
to grow our top line in addition to aggressive cost-reduction initiatives that
will improve our competitive position."

Regarding the Company's expectations for the fourth quarter of 2009, Corey
added, "We are reiterating our previous guidance. At this point we expect
Stoneridge to generate positive operating income in the fourth quarter.
However, the possibility of supply chain disruptions could modify our outlook
as capacity reductions by our suppliers have not been restored. In addition,
our cash position may be affected by potential volume increases which would
require a ramp up in working capital and may result in a modest cash use."

Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2009
third-quarter results can be accessed at 11:00 a.m. Eastern time on Thursday,
October 29, 2009, at www.stoneridge.com, which will also offer a webcast
replay.

About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Warren, Ohio, is an independent designer
and manufacturer of highly engineered electrical and electronic components,
modules and systems principally for the automotive, medium- and heavy-duty
truck, agricultural and off-highway vehicle markets. Additional information
about Stoneridge can be found at www.stoneridge.com.

Forward-Looking Statements
Statements in this release that are not historical fact are forward-looking
statements, which involve risks and uncertainties that could cause actual
events or results to differ materially from those expressed or implied in this
release. Factors that may cause actual results to differ materially from
those in the forward-looking statements include, among other factors, the loss
of a major customer; a significant change in automotive, medium- and
heavy-duty truck or agricultural and off-highway vehicle production;
disruption in the OEM supply chain due to bankruptcies; a significant change
in general economic conditions in any of the various countries in which the
Company operates; labor disruptions at the Company's facilities or at any of
the Company's significant customers or suppliers; the ability of the Company's
suppliers to supply the Company with parts and components at competitive
prices on a timely basis; customer acceptance of new products; and the failure
to achieve successful integration of any acquired company or business. In
addition, this release contains time-sensitive information that reflects
management's best analysis only as of the date of this release. The Company
does not undertake any obligation to publicly update or revise any
forward-looking statements to reflect future events, information or
circumstances that arise after the date of this release. Further information
concerning issues that could materially affect financial performance related
to forward-looking statements contained in this release can be found in the
Company's periodic filings with the Securities and Exchange Commission.

STONERIDGE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----

Net Sales $117,992 $178,434 $341,367 $594,733

Costs and Expenses:
Cost of goods sold 90,909 143,089 281,413 458,217
Selling, general and
administrative 23,139 31,668 76,554 104,834
Restructuring charges 1,310 2,742 3,819 5,877
----- ----- ----- -----

Operating Income (Loss) 2,634 935 (20,419) 25,805

Interest expense, net 5,559 5,049 16,594 15,301
Equity in earnings of
investees (3,386) (4,371) (4,864) (11,206)
Loss on early
extinguishment of debt - - - 770
Other expense (income),
net (198) (234) 447 44
---- ---- --- --

Income (Loss) Before
Income Taxes 659 491 (32,596) 20,896

Provision (benefit) for
income taxes 1,502 855 (409) 10,029
----- --- ---- ------

Net Income (Loss) $(843) $(364) $(32,187) $10,867
===== ===== ======== =======

Basic net income (loss)
Per share $(0.04) $(0.02) $(1.37) $0.47
====== ====== ====== =====
Basic weighted average
Shares outstanding 23,761 23,405 23,580 23,353
====== ====== ====== ======

Diluted net income (loss)
per share $(0.04) $(0.02) $(1.37) $0.46
====== ====== ====== =====
Diluted weighted average
shares outstanding 23,761 23,405 23,580 23,728
====== ====== ====== ======

STONERIDGE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

September 30, December 31,
2009 2008
---- ----
ASSETS (Unaudited) (Audited)

Current Assets:
Cash and cash equivalents $84,442 $92,692
Accounts receivable, less reserves
of $3,492 and $4,204, respectively 86,245 96,535
Inventories, net 37,541 54,800
Prepaid expenses and other 16,789 9,069
Deferred income taxes 1,868 1,495
----- -----
Total current assets 226,885 254,591
------- -------

Long-Term Assets:
Property, plant and equipment, net 77,941 87,701
Other Assets:
Investments and other, net 48,575 40,145
Total long-term assets 126,516 127,846
------- -------
Total Assets $353,401 $382,437
======== ========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Accounts payable $44,104 $50,719
Accrued expenses and other 42,427 43,485
------ ------
Total current liabilities 86,531 94,204
------ ------

Long-Term Liabilities:
Long-term debt... 183,000 183,000
Deferred income taxes 7,073 7,002
Other liabilities 6,905 6,473
----- -----
Total long-term liabilities 196,978 196,475
------- -------

Shareholders' Equity:
Preferred Shares, without par value,
authorized 5,000 shares, none issued - -
Common Shares, without par value,
authorized 60,000 shares, issued
25,294 and 24,772 shares and outstanding
25,010 and 24,665 shares, respectively,
with no stated value - -
Additional paid-in capital 158,489 158,039
Common Shares held in treasury,
284 and 107 shares, respectively,
at cost (289) (129)
Accumulated deficit (91,342) (59,155)
Accumulated other comprehensive
income (loss) 3,034 (6,997)
----- ------
Total shareholders' equity 69,892 91,758
------ ------
Total Liabilities and
Shareholders' Equity $353,401 $382,437
======== ========

STONERIDGE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

Nine Months Ended
September 30,
-------------
2009 2008
---- ----
OPERATING ACTIVITIES:
Net cash provided by (used for)
operating activities $(2,578) $30,668
------- -------

INVESTING ACTIVITIES:
Capital expenditures (8,779) (17,956)
Proceeds from sale of property, plant
and equipment 88 435
Business acquisitions and other - (980)
--- ----
Net cash used for investing activities (8,691) (18,501)
------ -------

FINANCING ACTIVITIES:
Repayments of long-term debt - (17,000)
Share-based compensation activity - 1,305
Premiums related to early extinguishment
of debt - (553)
Other financing costs (50) -
--- ---
Net cash used for financing activities (50) (16,248)
--- -------

Effect of exchange rate changes on
cash and cash equivalents 3,069 (2,232)
----- ------

Net change in cash and cash equivalents (8,250) (6,313)

Cash and cash equivalents at beginning
of period 92,692 95,924
------ ------

Cash and cash equivalents at
end of period $84,442 $89,611
======= =======

SOURCE Stoneridge, Inc.

Kenneth A. Kure, Corporate Treasurer and Director of Finance, of Stoneridge,
Inc., +1-330-856-2443