EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

STONERIDGE REPORTS THIRD-QUARTER 2006 RESULTS

· Net Sales and Income Increase
· Full-year 2006 Earnings Outlook Unchanged at $0.50 to $0.60 Per Share
· 2007 Earnings Expected to Match 2006 Level

WARREN, Ohio — October 27, 2006 — Stoneridge, Inc. (NYSE: SRI) today announced net sales of $172.4 million and net income of $4.4 million, or $0.19 per diluted share, for the third quarter ended September 30, 2006.

Net sales increased $13.7 million, or 8.6 percent, to $172.4 million, compared with $158.7 million for the third quarter of 2005. The increase in sales was primarily due to strong demand in the Company’s commercial vehicle markets. The effect of foreign currency translation resulted in a favorable impact of $2.1 million on net sales compared with the same period in 2005.

Net income for the third quarter was $4.4 million, or $0.19 per diluted share, compared with a net loss of $(3.3) million, or $(0.14) per diluted share, in the third quarter of 2005. The increase in net income was primarily attributable to improved gross profit, lower restructuring and bad debt expenses, and a lower marginal tax rate. The quarter was unfavorably affected by raw material price increases and product price reductions.

“We are pleased to report improved operating results from our commercial vehicle business as operational improvement initiatives take hold across the organization,” said John C. Corey, president and chief executive officer. “Our team remains focused on continuing to improve our operational performance as the North American industry outlook remains challenging over the near term.”

For the 39 weeks ended September 30, 2006, net sales were $537.5 million, an increase of 3.4 percent compared with $519.8 million for the 39 weeks ended October 1, 2005. Net income for the 2006 year-to-date period was $13.1 million, or $0.56 per diluted share, compared with $3.9 million, or $0.17 per diluted share, in the same 2005 period.

Net cash provided by operating activities for the 39 weeks ended September 30, 2006 was $22.6 million, compared with net cash provided of $15.5 million for the corresponding period ended October 1, 2005. The increase in cash provided by operating activities was primarily due to the improvement in net income.

Outlook

“For 2006, we are reaffirming our full-year guidance based upon the reduction in fourth-quarter production schedules,” Corey said. “For 2007, our target is to maintain our 2006 expected net income level despite the anticipated declines in North American medium- and heavy-duty truck production. Our planned cost-reduction activities, operational improvement initiatives and new product launches will support our 2007 goal.”

The Company’s full-year 2006 earnings outlook is unchanged at $0.50 to $0.60 per diluted share. Full-year 2005 net income was $0.04 per diluted share. Based upon the current industry outlook, the Company expects 2007 net income to remain basically level with its anticipated 2006 earnings of $0.50 to $0.60 per diluted share. For 2007, assumptions include a North American medium- and heavy-duty truck production decline of 25-35 percent and North American light vehicle production to approximate 2006 levels.

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Conference Call on the Web

A live Internet broadcast of Stoneridge’s conference call regarding 2006 third-quarter results can be accessed at 11 a.m. Eastern time on Friday, October 27, 2006, at www.stoneridge.com, which will also offer a webcast replay.

About Stoneridge, Inc.

Stoneridge, Inc., headquartered in Warren, Ohio, is a leading independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, medium- and heavy-duty truck, agricultural and off-highway vehicle markets. Net sales in 2005 were approximately $672 million. Additional information about Stoneridge can be found at www.stoneridge.com.

Forward-Looking Statements

Statements in this release that are not historical fact are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release. Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant change in automotive, medium- and heavy-duty truck or agricultural and off-highway vehicle production; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company’s facilities or at any of the Company’s significant customers or suppliers; the ability of the Company’s suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business. In addition, this release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company’s periodic filings with the Securities and Exchange Commission.

For more information, contact:

Greg Fritz, Director of Corporate Finance and Investor Relations
330/856-2443

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STONERIDGE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)


	(unaudited)
	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	September 30,			October 1,			September 30,			October 1,
	2006			2005			2006			2005

Net Sales	$	172,351		$	158,715		$	537,484		$	519,849

Costs and Expenses:
Cost of goods sold		134,173			127,154			414,619			401,238
Selling, general and administrative		28,956			28,357			91,346			88,943
Provision for doubtful accounts		38			2,671			544			3,604
Loss (gain) on sale of property, plant and equipment		15			(5	)		(1,454	)		(344	)
Restructuring charges, net		80			823			154			4,963


Operating Income (Loss)		9,089			(285	)		32,275			21,445

Interest expense, net		5,710			5,936			17,462			17,973
Equity in earnings of investees		(1,838	)		(1,397	)		(4,804	)		(3,203	)
Other (income) expense, net		(55	)		(108	)		1,697			(900	)


Income (Loss) Before Income Taxes		5,272			(4,716	)		17,920			7,575

Provision (benefit) for income taxes		866			(1,424	)		4,857			3,683


Net Income (Loss)	$	4,406		$	(3,292	)	$	13,063		$	3,892


Basic net income (loss) per share	$	0.19		$	(0.14	)	$	0.57		$	0.17

Basic weighted average shares outstanding		22,880			22,726			22,833			22,701


Diluted net income (loss) per share	$	0.19		$	(0.14	)	$	0.56		$	0.17

Diluted weighted average shares outstanding		23,396			22,726			23,250			22,940

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STONERIDGE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)


	September 30,			December 31,
	2006			2005
	(Unaudited)			(Audited)

ASSETS

Current Assets:
Cash and cash equivalents	$	46,730		$	40,784
Accounts receivable, less allowances for doubtful accounts of $4,841 and $4,562, respectively		121,938			100,362
Inventories, net		58,237			53,791
Prepaid expenses and other		14,701			14,490
Deferred income taxes		9,575			9,253

Total current assets		251,181			218,680


Long-Term Assets:
Property, Plant and Equipment, net		114,458			113,478
Other Assets:
Goodwill		65,176			65,176
Investments and other, net		31,500			26,491
Deferred income taxes		36,899			39,213

Total long-term assets		248,033			244,358

Total Assets	$	499,214		$	463,038


LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities:
Current portion of long-term debt	$	—		$	44
Accounts payable		69,020			55,344
Accrued expenses and other		51,919			46,603

Total current liabilities		120,939			101,991


Long-Term Liabilities:
Long-term debt, net of current portion		200,000			200,000
Deferred income taxes		1,411			923
Other liabilities		5,074			6,133

Total long-term liabilities		206,485			207,056


Shareholders’ Equity:
Preferred Shares, without par value, 5,000 authorized, none issued		—			—
Common Shares, without par value, authorized 60,000 shares, issued 23,940 and 23,232 shares and outstanding 23,758 and 23,178 shares, respectively, with no stated value		—			—
Additional paid-in capital		148,876			147,440
Common Shares held in treasury, 182 and 54 shares, respectively, at cost		(150	)		(65	)
Retained earnings		20,271			7,188
Accumulated other comprehensive income (loss)		2,793			(572	)

Total shareholders’ equity		171,790			153,991

Total Liabilities and Shareholders’ Equity	$	499,214		$	463,038

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STONERIDGE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	(unaudited)
	For the Thirty-Nine Weeks Ended
	September 30,			October 1,
	2006			2005

Net cash provided by operating activities	$	22,610		$	15,521


INVESTING ACTIVITIES:
Capital expenditures		(19,794	)		(20,934	)
Proceeds from sale of property, plant and equipment		2,266			1,664
Business acquisitions and other		(668	)		(282	)

Net cash used by investing activities		(18,196	)		(19,552	)


FINANCING ACTIVITIES:
Repayments of long-term debt		(44	)		(96	)
Share-based compensation activity		47			3
Other financing costs		(150	)		(75	)

Net cash used by financing activities		(147	)		(168	)


Effect of exchange rate changes on cash and cash equivalents		1,679			(2,207	)


Net change in cash and cash equivalents		5,946			(6,406	)

Cash and cash equivalents at beginning of period		40,784			52,332


Cash and cash equivalents at end of period	$	46,730		$	45,926

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