STRATTEC SECURITY CORPORATION Reports Fiscal Fourth Quarter Results

MILWAUKEE, Aug. 9, 2011 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION
(Nasdaq:STRT) today reported operating results for the fiscal fourth quarter and
year ended July 3, 2011.

Fiscal 2011 fourth quarter and full year net sales and income significantly
improved over fiscal 2010, continuing the positive trend which began early in
the Company's prior fiscal year. The Company's fiscal 2011 net sales reached a
record high, exceeding the previous record by approximately 16%.

Net sales for the fourth quarter ended July 3, 2011 were $74.2 million, compared
to net sales of $61.4 million for the fourth quarter ended June 27, 2010. The
2011 fiscal fourth quarter was 14 weeks while 2010's fourth quarter was the
typical 13 weeks. The impact of the additional week of customer shipments during
the current year quarter increased sales by approximately $4.5 million. Net
income was $2.7 million during the current quarter, compared to $853,000 in the
prior year quarter. Diluted earnings per share for the fourth quarter were $.81
compared to $.26 in the prior year quarter.

Sales to STRATTEC's largest customers overall increased in the current quarter
compared to the prior year quarter levels. Sales to Chrysler Group LLC were
$22.1 million in the current quarter compared to $21.9 million in the prior year
quarter. Sales to General Motors Company were $17.6 million in the current
quarter compared to $16.0 million in the prior year quarter. Included in the
prior quarter sales to General Motors were $1.9 million of sales to Nexteer
Automotive, formerly a unit of General Motors. Sales to Ford Motor Company were
$8.3 million in the current quarter compared to $5.1 million in the prior year
quarter. Sales to Hyundai/Kia were $4.0 million in the current quarter compared
to $3.1 million in the prior year quarter.

Gross profit margins were 17.4 percent in the current quarter compared to 15.9
percent in the prior year quarter. The higher gross profit margin in the current
year quarter was primarily the result of a combination of higher content on
certain new products we supply and higher customer vehicle production volumes
which increased overhead absorption of STRATTEC's manufacturing costs. Also
favorably impacting the current quarter were lower expense provisions for the
Company's incentive bonus plans as compared to the prior year quarter. Items
negatively impacting the current quarter were higher purchased raw material
costs for zinc and brass along with an unfavorable Mexico Peso to U.S. dollar
exchange rate affecting the Company's operations in Mexico, which items
collectively reduced the current quarter gross profit margin by 1.7 percentage
points.

Operating expenses were $9.0 million in the current quarter, compared to $8.7
million in the prior year quarter. This increase was primarily due to the extra
week of expense offset by lower expense provisions under the Company's incentive
bonus plans incurred in fiscal 2011 compared to fiscal 2010.

The provision for income taxes in both the current and previous year quarters
included a favorable adjustment primarily relating to foreign taxes.

For the fiscal year ended July 3, 2011, net sales were $260.9 million compared
to net sales of $208.0 million in the prior year period. Net income was $5.4
million compared to net income of $3.4 million in the prior year period and
diluted earnings per share for the current year were $1.63 compared to diluted
earnings per share of $1.04 in the prior year.

STRATTEC designs, develops, manufactures and markets automotive Access Control
Products, including mechanical locks and keys, electronically enhanced locks and
keys, steering column and instrument panel ignition lock housings, latches,
power sliding side door systems, power lift gate systems, power deck lid
systems, door handles and related products. These products are provided to
customers in North America, and on a global basis through a unique strategic
relationship with WITTE Automotive of Velbert, Germany and ADAC Automotive of
Grand Rapids, Michigan. Under this relationship, STRATTEC, WITTE and ADAC market
our products to global customers under the "VAST" brand name. STRATTEC's history
in the automotive business spans over 100 years.

The STRATTEC SECURITY CORPORATION logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4700

Certain statements contained in this release contain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements may be identified by the use of forward-looking words
or phrases such as "anticipate," "believe," "could," "expect," "intend," "may,"
"planned," "potential," "should," "will," and "would." Such forward-looking
statements in this release are inherently subject to many uncertainties in the
Company's operations and business environment. These uncertainties include
general economic conditions, in particular, relating to the automotive industry,
consumer demand for the Company's and its customers' products, competitive and
technological developments, customer purchasing actions, foreign currency
fluctuations, and costs of operations (including fluctuations in the cost of raw
materials). Shareholders, potential investors and other readers are urged to
consider these factors carefully in evaluating the forward-looking statements
and are cautioned not to place undue reliance on such forward-looking
statements. The forward-looking statements made herein are only made as of the
date of this press release and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events or
circumstances occurring after the date of this release. In addition, such
uncertainties and other operational matters are discussed further in the
Company's quarterly and annual filings with the Securities and Exchange
Commission.

STRATTEC SECURITY CORPORATION
----------------------------------------------------------------------
Results of Operations
(In Thousands except per share amounts)

Fourth Quarter Ended Years Ended

June
July 3, 27, July 3, June 27,
2011 2010 2011 2010
----------- ------- ----------- --------
(Unaudited) (Unaudited)

Net Sales $74,222 $61,360 $260,933 $207,964

Cost of Goods Sold 61,304 51,630 218,770 174,922
----------- ------- ----------- --------
Gross Profit 12,918 9,730 42,163 33,042

Engineering, Selling &
Administrative Expenses 9,007 8,665 33,443 29,939
Impairment Charge -- -- -- 223
Environmental -- -- -- (1,125)
Recovery of Doubtful
Accounts -- -- -- (421)
----------- ------- ----------- --------
Income from Operations 3,911 1,065 8,720 4,426

Interest Income 35 28 119 86
Interest Expense-Related
Parties (41) (54) (175) (225)

Other Income, Net 567 354 1,466 1,320
----------- ------- ----------- --------
4,472 1,393 10,130 5,607

Provision for Income
Taxes 1,146 276 2,540 1,666
----------- ------- ----------- --------

Net Income $3,326 $1,117 $7,590 $3,941
=========== ======= =========== ========

Net Income Attributed
to Non-Controlling
Interest 628 264 2,172 520
----------- ------- ----------- --------
Net Income Attributed
to STRATTEC SECURITY
CORPORATION $ 2,698 $853 $5,418 $3,421
=========== ======= =========== ========

Earnings Per Share:

Basic $0.82 $0.26 $1.65 $1.05
=========== ======= =========== ========

Diluted $0.81 $0.26 $1.63 $1.04
=========== ======= =========== ========
Average Basic
Shares Outstanding 3,288 3,275 3,285 3,271

Average Diluted
Shares Outstanding 3,326 3,296 3,323 3,280

Other
Capital Expenditures $3,804 $1,958 $9,531 $6,903
Depreciation &
Amortization $1,715 $1,808 $6,619 $7,143

STRATTEC SECURITY CORPORATION
------------------------------------------------------

Condensed Balance Sheet Data
(In Thousands)

July 3, June 27,
2011 2010
----------- ----------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 17,250 $ 21,867
Restricted Cash (A) -- 2,100
Receivables, net 39,649 36,084
Inventories 22,135 17,086

Other current assets 15,368 12,871
----------- ----------
Total Current Assets 94,402 90,008
Deferred Income Taxes 3,639 10,534
Loan to Joint Venture 1,500 1,500
Investment in Joint Venture 7,276 5,176
Other Long Term Assets 635 733
Property, Plant and
Equipment, Net 40,636 37,051
----------- ----------

$ 148,088 $ 145,002
=========== ==========

LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Accounts Payable $ 22,851 $ 21,192

Other 28,137 25,038
----------- ----------
Total Current Liabilities 50,988 46,230
Borrowings Under Line of
Credit Facility -- --
Accrued Pension and Post
Retirement Obligations 7,036 22,982
Shareholders' Equity 243,974 242,115
Accumulated Other
Comprehensive Loss (21,750) (31,941)

Less: Treasury Stock (136,009) (136,047)
----------- ----------
Total STRATTEC SECURITY
CORPORATION
Shareholders' Equity 86,215 74,127

Non-Controlling Interest 3,849 1,663
----------- ----------

Total Shareholders' Equity 90,064 75,790
----------- ----------

$ 148,088 $ 145,002
=========== ==========

NOTE A: Represents a commercial guarantee by STRATTEC
SECURITY CORPORATION relating to a
promissory note issued by Vehicle Access Systems
Technology, LLC (VAST, LLC). This guarantee was
canceled in October 2010.

STRATTEC SECURITY CORPORATION

--------------------------------------------------------------------------------
----
Condensed Cash Flow Statement Data

(In Thousands)

Fourth Quarter Ended Years
Ended

July 3, June 27, July 3,
June 27,
2011 2010 2011
2010
----------- --------- -----------
---------
(Unaudited) (Unaudited)

Cash Flows from Operating Activities:

Net Income $3,326 $1,117 $7,590
$3,941
Adjustment to Reconcile Net Income to

Cash Provided by Operating

Activities:

Equity Earnings in Joint Venture (246) (369) (1,246)
(1,008)
Depreciation and Amortization 1,715 1,808 6,619
7,143
Foreign Currency Transaction Loss

(Gain) 278 (42) 836
283
Unrealized Gain on Foreign Currency

Option Contracts (359) -- (245)
--
Deferred Income Taxes (177) 170 (177)
3,428
Stock Based Compensation Expense 168 128 621
468
Provision (Recovery) for Doubtful

Accounts -- -- --
(421)
Curtailment Loss -- -- --
505
Impairment Charge -- -- --
223
Environmental -- -- --
(1,125)
Change in Operating

Assets/Liabilities 4,011 5,737 (5,639)
(3,425)

Other, net (37) 18 12
53
----------- --------- -----------
---------

Net Cash Provided by Operating

Activities 8,679 8,567 8,371
10,065

Cash Flows from Investing Activities:

Investment in Joint Ventures (150) -- (450)
(100)
Purchase of Additional Interest in

Minority

Owned Subsidiaries -- -- (22)
--
Restricted Cash -- -- 2,100
(2,100)
Loan to Joint Venture -- -- --
(2,500)
Proceeds from Repayment of Loan to

Joint Venture -- -- --
1,000
Additions to Property, Plant and

Equipment (3,804) (1,958) (9,531)
(6,903)
Proceeds from Sale of Property,

Plant

and Equipment 90 11 111
21
----------- --------- -----------
---------
Net Cash Used in Investing Activities (3,864) (1,947) (7,792)
(10,582)

Cash Flow from Financing Activities:

Dividends Paid -- -- (3,989)
--
Repayment of Loan to Related Parties (300) -- (1,150)
(225)
Excess Tax Benefits from Stock Based

Compensation 12 9 12
9
Exercise of Stock Options and

Employee

Stock Purchases 48 39 90
72
----------- --------- -----------
---------

Net Cash (Used in) Provided by

Financing Activities (240) 48 (5,037)
(144)

Foreign Currency Impact on Cash (5) 1 (159)
(236)
----------- --------- -----------
---------

Net Increase (Decrease) in Cash &

Cash Equivalents 4,570 6,669 (4,617)
(897)

Cash and Cash Equivalents:

Beginning of Period 12,680 15,198 21,867
22,764
----------- --------- -----------
---------

End of Period $ 17,250 $ 21,867 $ 17,250 $
21,867
=========== ========= ===========
=========

CONTACT: Pat Hansen
Senior Vice President and
Chief Financial Officer
414-247-3435
www.strattec.com