Methode Q4 2020 Earnings Report
Key Takeaways
Methode Electronics reported a decrease in net sales due to lower volume in the Automotive and Industrial segments as a result of the COVID-19 pandemic. However, GAAP net income and free cash flow increased. The company implemented measures to manage costs, preserve liquidity, and enhance employee safety in response to the pandemic.
Net sales decreased by 20.8% to $210.6 million due to lower volume in the Automotive and Industrial segments as a result of the COVID-19 pandemic.
GAAP net income increased to $30.1 million, or $0.79 per diluted share, from $22.6 million, or $0.60 per diluted share, in the same quarter of Fiscal 2019.
Free cash flow was $32.2 million, a 43.1 percent increase over the same quarter of Fiscal 2019.
The COVID-19 pandemic negatively impacted the automotive and commercial vehicle businesses as many customers suspended manufacturing operations.
Methode
Methode
Methode Revenue by Segment
Forward Guidance
The company is not providing annual guidance due to the ongoing market uncertainty and the resulting lack of demand visibility due to the COVID-19 pandemic. The company does intend to provide partial year guidance at a future date as soon as demand schedules firm and forecasts stabilize.