Methode Electronics, Inc. reported a net loss of $62.6 million for the fiscal year ending May 3, 2025, a significant improvement from a loss of $123.3 million in the previous fiscal year. The company's net sales decreased by 6.0% to $1,048.1 million, down from $1,114.5 million in fiscal 2024. This decline was primarily attributed to lower sales in the Automotive segment, which saw a decrease of 14.9% to $508.9 million, while the Industrial segment experienced a 5.9% increase in sales to $487.4 million. The gross profit margin for the year was 15.6%, slightly down from 16.0% in the prior year, largely due to increased inventory obsolescence expenses.
In terms of operational changes, Methode Electronics made a strategic decision to discontinue its medical device business, Dabir Surfaces, in the first quarter of fiscal 2024, resulting in no sales from this segment in fiscal 2025. The company also underwent a leadership transition, appointing Jonathan DeGaynor as President and CEO in July 2024. Additionally, Methode's workforce totaled approximately 6,500 employees as of May 3, 2025, with 95% located outside the U.S.
The company faced challenges related to supply chain disruptions and inflation, which impacted its cost structure. Despite these challenges, Methode reported a decrease in the cost of products sold by 5.5% to $884.7 million, attributed to lower material and freight costs. However, the company also recorded higher inventory obsolescence expenses of $10 million. Selling and administrative expenses rose by 1.9% to $163.9 million, driven by increased professional fees and stock-based compensation.
Looking ahead, Methode Electronics remains cautious about the impact of ongoing global economic conditions, including inflation and trade policies. The company has implemented measures to mitigate these risks but acknowledges that future performance may be affected by changes in customer demand, particularly in the automotive sector, which is experiencing a shift towards electric vehicles. The company’s outlook emphasizes the need to adapt to evolving market conditions while maintaining operational efficiency.
About METHODE ELECTRONICS INC
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