Methode Electronics, Inc. Announces Preliminary Financial Results
CHICAGO, June 14, 2022 (GLOBE NEWSWIRE) — Methode Electronics, Inc. (NYSE: MEI)one of the world’s leading providers of bespoke solutions for user interface, LED lighting systems and power distribution applications, today announced preliminary unaudited financial results for the year ended April 30, 2022 and provided a preliminary outlook for fiscal year 2023.
“We achieved a record year for sales, the fifth in a row,” said Donald W. Duda, president and CEO of Methode Electronics. “The Methode team continued to deal with market disruptions, supply chain constraints and other cost headwinds, but these challenges accelerated towards the end of the fourth quarter. As a result, we did not meet our earnings expectations.
Mr. Duda continued, “Given the short-term nature of some of these headwinds and the strength of our attribution activity over the past two years, we expect continued sales growth as well as further earnings growth in fiscal 2023. I am also confident that our strong balance sheet will not only help us navigate the current environment, but also position Methode positively for the eventual recovery phase of this global macroeconomic situation. “
Preliminary financial results for fiscal year 2022
The company forecasts net sales of approximately $1,164 million for fiscal 2022, which would represent a 7% increase from the prior year. This compares to the previously provided net sales forecast range of $1,160-1,170 million.
During the fourth quarter of fiscal 2022, the company suffered a significant impact on its earnings performance due to market disruptions, supply chain constraints and unforeseen expenses. Market disruptions included the unforeseen lockdowns in China due to COVID-19 and the extent of weakness in European business activity due to the conflict in Ukraine. Ongoing supply chain constraints have contributed to increased material and freight costs.
The company expects diluted earnings per share in the range of $2.68 to $2.72 for fiscal 2022. This expected range compares to the previously provided guidance range of $3.05 to $3.15. $.
The company’s expectations for fiscal 2022 results are based on unaudited preliminary information for the full fiscal year and are subject to revision. Although the full year is now complete, the annual year-end audit is still ongoing. Accordingly, as the normal year-end closing and review processes are completed, actual results may differ from these preliminary results.
Preliminary guidance for FY2023
For fiscal 2023, the company expects net sales to be between $1,160 million and $1,210 million and diluted earnings per share to be between $2.70 and $3.10.
Preliminary guidance is subject to change due to a variety of factors, including the impact of the COVID-19 pandemic, ongoing semiconductor shortages, other supply chain disruptions, conflict in Ukraine and short-term and long-term supply chain rationalization and restructuring efforts. .
Fourth Quarter and Full Year 2022 Results Conference Call
The company will release its fourth quarter and fiscal 2022 results for the period ended April 30, 2022 on Thursday, June 23, 2022, before market open.
Following the release, the company will host a conference call and webcast to review financial and operational highlights led by its President and Chief Executive Officer, Donald W. Duda, and Chief Financial Officer, Ronald LG Tsoumas, at 10:00 a.m. HAC.
To participate in the conference call, please dial 888-506-0062 (domestic) or 973-528-0011 (international) at least five minutes prior to the start of the event. A simultaneous webcast can be accessed via the Company’s website, www.methode.com, on the Investors page.
A replay of the conference call will be available shortly after the call until July 7, 2022, by dialing 877-481-4010 and providing the passcode 45561. A webcast will also be available on the website of the company, www.methode.com, on the Investors Page.
About Methode Electronics, Inc.
Methode Electronics, Inc. (NYSE:MEI) is a leading global provider of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, the Middle East and Asia . We design, engineer and produce mechatronic products for OEMs using our wide range of technologies for user interface, LED lighting system, power distribution and sensor applications.
Our solutions are found in transportation end markets (including automotive, utility vehicles, e-bikes, aerospace, bus and rail), cloud computing infrastructure, construction equipment, large appliances public and medical devices. Our business is managed by segment, these segments being automotive, industrial, interface and medical.
This press release contains certain forward-looking statements, which reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to safe harbor protections under securities laws. Methode undertakes no obligation to update any forward-looking statement to conform to actual results or to changes in Methode’s expectations on a quarterly basis or otherwise. The forward-looking statements contained in this press release involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from our expectations are detailed in Methode’s filings with the Securities and Exchange Commission, such as our annual and quarterly reports. These factors may include, but are not limited to, the following: 1) Impact of pandemics, such as the COVID-19 pandemic; 2) Dependence on the automobile industry and utility vehicles; 3) Dependence on our supply chain, including semiconductor suppliers; 4) Dependence on a small number of large customers, including two large automotive customers; 5) Dependence on availability and price of materials; 6) Failure to attract and retain qualified personnel; 7) Timing, quality and cost of new program launches; 8) Risks related to the conduct of global operations; 9) Ability to compete effectively; 10) Investment in programs before revenue recognition; 11) Ability to withstand price pressures, including price reductions; 12) Impact of production delays or canceled orders; 13) Ability to successfully leverage acquisitions and divestitures; 14) Ability to withstand business interruptions; 15) Breaches of our computer systems; 16) Ability to keep pace with rapid technological change; 17) Ability to protect our intellectual property; 18) Costs associated with environmental, health and safety regulations; 19) International trade disputes resulting in tariffs and our ability to mitigate tariffs; 20) Impact of climate change and related regulations; 21) Ability to avoid design or manufacturing defects; 22) Accounting for goodwill and long-lived asset impairment charges; 23) Ability to manage our levels of indebtedness and any resulting restrictions; 24) Currency fluctuations; 25) Fluctuations in income tax rates; 26) Judgments relating to the recognition of tax positions; 27) Compensation expense adjustments for performance-based awards; 28) Timing and magnitude of costs associated with restructuring activities; and 29) Impact on interest expense of replacement or modification of LIBOR.
For Methode Electronics, Inc.
Robert K. Cherry
Vice President Investor Relations