CHICAGO - Methode Electronics, Inc. (NYSE: NYSE:MEI), a global provider of custom-engineered solutions for various applications, has announced the appointment of Lars Ullrich as Senior Vice President of its Global Automotive Business, set to take effect on December 2, 2024. In this newly established role, Ullrich will be responsible for the strategic direction, product launches, and commercial activities of the company's automotive division worldwide.
Ullrich's appointment comes after his tenure as Head of Region Americas and Chief Business Officer for Larsen and Toubro Semiconductor Technologies. He brings over two decades of experience in the automotive supply industry, having held significant positions at Infineon (OTC:IFNNY) Technologies and Robert Bosch (NS:BOSH). His expertise lies in strategic leadership, customer relationship management, operational excellence, and value chain transformations.
President and CEO Jon DeGaynor expressed confidence in Ullrich's abilities, citing his track record of innovation and successful product solutions, as well as his skills in leading global teams to surpass customer expectations and achieve growth targets.
Methode Electronics, with its headquarters in Chicago, operates across North America, Europe, the Middle East, and Asia, providing mechatronic products for OEMs. The company's offerings span user interfaces, LED lighting systems, power distribution, and sensor applications, serving markets including automotive, commercial vehicle, cloud computing, construction, and consumer appliances.
The information in this article is based on a press release statement from Methode Electronics, Inc.
In other recent news, Methode Electronics reported a challenging first quarter for fiscal 2025, with sales totaling $259 million and an adjusted pre-tax loss of $9 million. Despite a decrease in sales, the company is focusing on the electric vehicle (EV) sector, which contributed 18% to the quarter's revenue. Methode Electronics is planning to launch over 30 programs in the next two fiscal years, with the aim of long-term value creation.
In an annual stockholder meeting, Methode Electronics elected ten directors, ratified Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending May 3, 2025, and passed a non-binding advisory vote on the compensation of named executive officers. The company has also appointed Mark Schwabero as its new chairman of the board, following the retirement of Walter Aspatore.
Despite operational issues in its Mexican facilities and a negative free cash flow of $2.7 million, Methode Electronics expects net sales in fiscal 2025 to be similar to the previous year and anticipates a return to profitable organic sales growth in fiscal 2026. The company remains optimistic about its growth, especially in the EV market. These are among the recent developments at Methode Electronics.
InvestingPro Insights
As Methode Electronics, Inc. (NYSE: MEI) prepares for a leadership transition in its Global Automotive Business, investors should consider some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Methode Electronics currently has a market capitalization of $326.37 million USD, reflecting its position in the automotive supply industry. The company's price-to-book ratio stands at a low 0.44, suggesting that the stock may be undervalued relative to its book value. This aligns with an InvestingPro Tip indicating that MEI is "Trading at a low Price / Book multiple."
Despite the challenging market conditions, Methode Electronics maintains a significant dividend yield of 6.05%, which could be attractive to income-focused investors. An InvestingPro Tip highlights that the company "Pays a significant dividend to shareholders" and has impressively "maintained dividend payments for 43 consecutive years." This long-standing commitment to shareholder returns may provide some stability for investors during this period of leadership change and industry transformation.
However, it's important to note that the company faces some financial headwinds. The revenue for the last twelve months as of Q1 2025 was $1,083.3 million USD, with a revenue growth of -8.73% over the same period. This decline in revenue, coupled with an operating income margin of -1.0%, underscores the challenges that the new leadership will need to address.
For investors considering Methode Electronics, InvestingPro offers 11 additional tips that provide further insights into the company's financial health and market position. These tips can be valuable for making informed investment decisions as the company navigates through its leadership transition and aims to capitalize on opportunities in the evolving automotive industry.
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