METHODE ELECTRONICS RECEIVES CUTBACKS FROM THE BIG 3 FOR AUTOMOTIVE COMPONENT PRODUCTION
METHODE ELECTRONICS RECEIVES CUTBACKS FROM THE
BIG 3 FOR AUTOMOTIVE COMPONENT PRODUCTION
CHICAGO, Dec. 5 /PRNewswire/ -- Methode Electronics, Inc. (NASDAQ: METHB) today announced that it has received schedule cutbacks from the Big 3 for automotive component production for the month of December. Preliminary information for January reflects a continuation of a softening in the automotive market.
President William J. McGinley said, "Automotive connectors and controls account for more than 40 percent of our consolidated volume and, accordingly, any significant movement away from Methode's previous sales level will adversely affect our performance. This slow-down in automotive volume coupled with the overall slump in the economy in general, will make it difficult for us to sustain improved results from a year ago. Methode Electronics, which has a fiscal year ending April 30, 1992, reported record results for its first two quarters ended July 31, 1991, and Oct. 31, 1991.
"Although we are experiencing some difficulties in the short term, the outlook for the controls portion of our business is quite bright. We are currently conducting talks with G.M. to expand our participation in its air bag clockspring device requirements during the 1994 model year. We are also working on new express-down window lift assemblies, a multiplicity of ignition switches and a new generation of speed control devices and passive restraint control components for introduction in the 1993 model year vehicles.
"For the long term we believe our automotive business offers significant opportunity for future growth," McGinley concluded.
/CONTACT: Kevin Hayes, vice president and treasurer of Methode Electronics, 708-867-9600, or Eugene Lyman of E.W. Lyman Associates, 312-944-0430/
(METHB) CO: Methode Electronics Inc. ST: Illinois IN: AUT SU: SM -- NY053 -- 9684 12/05/91 12:42 EST