CEO Pat Lavelle said its fiscal 2024 was worse than the year prior given the global economy, retailers cutting back on orders, inflation and the higher cost of inventory among other reasons. OEM sales were cut in half during the United Auto Workers Strike. He noted that consumer confidence in the economy is at its lowest point in the past six months.
“This marks two years of losses after two years of growth and profitability on an adjusted EBITDA* basis. We plan to cut at minimum 5 to 10 percent of overhead and will also review all products and programs.
Lavelle said on a conference call with analysts, “The aftermarket miss was predominantly in remote start. Some collision avoidance, Carlink, Car Connections and satellite radio was up but the aftermarket overall was challenged.” He cited a more sluggish retail environment, changes in the way car dealers are operating, inflation, interest rates and the state of the US economy as contributing to the challenged retail environment. However, he said retail inventory is in a better position now than it was this time last year.
Lavelle said, “After months of negotiations and after what we feel were our best efforts to renegotiate, we decided to exit rear seat entertainment with Stellantis. It was not an easy decision, but a lot has changed…” He cited rising costs and lower volumes.
VOXX however is continuing programs with Ford and is working on a new lighting programs with Nissan and Ford. VOXX also has a new contract with the US Postal Service.
On the OEM side, Lavelle expects “a sizeable ramp” in the second half and he expects the full VOXX Automotive Electronics segment to be profitable in the new fiscal year.
*EBITDA (earnings before interest, taxes, depreciation and amortization).
Pat Lavelle is a Biden supporter. With these financial reports, he should probably bow out or be removed.
i blame it on biden