Stoneridge has today announced net sales of US$121.1m and a net loss of US$11.6m for the first quarter.
Net sales decreased 40.4% due to dramatically reduced production volumes in the North American passenger car/light truck market (down 50.9%) and the commercial vehicle markets in Europe (off 55.6%) and North America (off 41.8%), and the effect of foreign currency translation.
The sales decrease was partially offset by the strength in the North American agricultural and off-road market.
Stoneridge said that to minimise its exposure on Chrysler's bankruptcy it has filed for and has been accepted to participate in the Chrysler and General Motors US Government supplier accounts receivable guarantee program.
It has been named as one of six suppliers that could have its ratings cut by S&P due to its exposure on Chrysler's business.
"The decrease in production volumes globally in the first quarter was the most severe the company has ever experienced," said John C. Corey, president and chief executive officer.
"Current market conditions have caused unprecedented turmoil throughout our industry and we are managing our operations to react rapidly and adjust to quickly changing demand. Nevertheless, we are encouraged that our cost-savings initiatives that have been implemented and our available liquidity and capital structure will allow us to operate through a protracted downturn in volume and position us for the new competitive landscape once markets recover. Although the first half of 2009 will be worse than we originally expected, we continue to expect Stoneridge to be operating income and cash flow from operations positive in 2009, with improved business conditions by late third quarter and in the fourth quarter."