8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 4, 2007

Commission file number: 001-13337

STONERIDGE, INC.

(Exact name of registrant as specified in its charter)

Ohio	34-1598949
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9400 East Market Street, Warren, Ohio	44484
(Address of principal executive offices)	(Zip Code)

(330) 856-2443

Registrant’s telephone number, including area code

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 Results of Operations and Financial Condition.

On May 4, 2007, Stoneridge, Inc. issued a press release announcing first quarter of 2007 earnings. A copy of the press release is attached hereto as Exhibit 99.1. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressed set forth by specific reference in such a filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Stoneridge, Inc.
Date: May 4, 2007	/s/ George E. Strickler
	George E. Strickler, Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)

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Exhibit Index

99.1     Press release dated May 4, 2007, announcing first quarter of 2007 earnings.

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

STONERIDGE REPORTS FIRST-QUARTER 2007 RESULTS
• Net Sales and Income Increase Year-over-Year
• Company Reaffirms Full-Year 2007 Earnings Outlook of $0.45 to $0.55 Per Diluted Share

WARREN, Ohio — May 4, 2007 — Stoneridge, Inc. (NYSE: SRI) today announced net sales of $185.0 million and net income of $4.9 million, or $0.21 per diluted share, for the first quarter ended March 31, 2007.

Net sales increased $5.4 million, or 3 percent, to $185.0 million, compared with $179.6 million for the first quarter of 2006. The increase in sales was primarily due to the impact of foreign currency translation. Sales were favorably impacted by new product launches in the Company’s sensor products business and strong European commercial vehicle sales. Offsetting these favorable impacts were significant declines in North American light vehicle and medium- and heavy-duty truck production. The effect of foreign currency translation increased first-quarter net sales by approximately $5.1 million compared with the same period in 2006.

Net income for the first quarter was $4.9 million, or $0.21 per diluted share, compared with net income of $3.8 million, or $0.16 per diluted share, in the first quarter of 2006. The increase in net income was primarily attributable to lower net interest expense, increased joint venture earnings and a lower effective tax rate.

“We are encouraged by our first-quarter results given the difficult conditions in our North American markets,” said John C. Corey, president and chief executive officer. “We are particularly pleased that our new product launches helped offset the anticipated double-digit production declines in our North American light vehicle and commercial vehicle markets.”

Net cash used by operating activities for the quarter ended March 31, 2007 was $(5.1) million, compared with net cash provided of $6.2 million for the quarter ended April 1, 2006. The decrease of $11.3 million in cash provided by operating activities was primarily due to unfavorable accounts payable variances relative to the previous year. The Company’s 2007 first-quarter accounts payable balance was consistent with the prior year’s first-quarter level. However, the year-end 2006 figure was considerably higher than the year-end 2005 figure, resulting in a cash outflow during the first quarter of 2007 compared with the substantial cash inflow during the first quarter of 2006.

Outlook
“Based on the current industry outlook, our expectation for full-year 2007 earnings of $0.45 to $0.55 per diluted share remains unchanged,” Corey said. “The anticipated decline in 2007 North American light vehicle and commercial vehicle production is materializing and our organization remains focused on effectively managing our business to minimize the effect of these declines.”

Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2007 first-quarter results can be accessed at 11 a.m. Eastern time on Friday May 4, 2007, at www.stoneridge.com, which will also offer a webcast replay.

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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 2006 were approximately $709 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)
	Three Months Ended
	March 31,			April 1,
	2007			2006
Net Sales	$	185,028		$	179,634
Costs and Expenses:
Cost of goods sold		142,181			138,942
Selling, general and administrative		33,173			31,819
Gain on sale of property, plant and equipment, net		(35	)		(1,489	)
Operating Income		9,709			10,362
Interest expense, net		5,484			5,919
Equity in earnings of investees		(2,120	)		(1,416	)
Other loss, net		288			7
Income Before Income Taxes		6,057			5,852
Provision for income taxes		1,187			2,085
Net Income	$	4,870		$	3,767
Basic net income per share	$	0.21		$	0.17
Basic weighted average shares outstanding		22,990			22,766
Diluted net income per share	$	0.21		$	0.16
Diluted weighted average shares outstanding		23,403			22,884

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STONERIDGE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	March 31,			December 31,
	2007			2006
	(Unaudited)			(Audited)
ASSETS
Current Assets:
Cash and cash equivalents	$	54,267		$	65,882
Accounts receivable, less allowances for doubtful accounts of $6,069 and $5,243, respectively		119,838			106,985
Inventories, net		60,200			58,521
Prepaid expenses and other		15,855			13,448
Deferred income taxes		8,177			9,196
Total current assets		258,337			254,032
Long-Term Assets:
Property, plant and equipment, net		114,043			114,586
Other Assets:
Goodwill		65,176			65,176
Investments and other, net		33,005			30,875
Deferred income taxes		37,734			37,138
Total long-term assets		249,958			247,775
Total Assets	$	508,295		$	501,807
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	66,621		$	72,493
Accrued expenses and other		50,860			45,624
Total current liabilities		117,481			118,117
Long-Term Liabilities:
Long-term debt		200,000			200,000
Deferred income taxes		1,883			1,923
Other liabilities		3,557			3,145
Total long-term liabilities		205,440			205,068
Shareholders’ Equity:
Preferred Shares, without par value, authorized 5,000 shares, none issued		—			—
Common Shares, without par value, authorized 60,000 shares, issued 24,483 and 23,990 shares and outstanding 24,280 and 23,804 shares, respectively, with no stated value		—			—
Additional paid-in capital		151,102			150,078
Common Shares held in treasury, 203 and 186 shares, respectively, at cost		(277	)		(151	)
Retained earnings		26,591			21,701
Accumulated other comprehensive income		7,958			6,994
Total shareholders’ equity		185,374			178,622
Total Liabilities and Shareholders’ Equity	$	508,295		$	501,807

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STONERIDGE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	(unaudited)
	Three Months Ended
	March 31,			April 1,
	2007			2006
OPERATING ACTIVITIES:
Net cash provided by (used for) operating activities	$	(5,056	)	$	6,221
INVESTING ACTIVITIES:
Capital expenditures		(6,807	)		(6,563	)
Proceeds from sale of property, plant and equipment		35			2,266
Business acquisitions and other		—			(1,034	)
Net cash used for investing activities		(6,772	)		(5,331	)
FINANCING ACTIVITIES:
Repayments of long-term debt		—			(44	)
Share-based compensation activity, net		355			(69	)
Other financing costs		—			(150	)
Net cash provided by (used for) financing activities		355			(263	)
Effect of exchange rate changes on cash and cash equivalents		(142	)		363
Net change in cash and cash equivalents		(11,615	)		990
Cash and cash equivalents at beginning of period		65,882			40,784
Cash and cash equivalents at end of period	$	54,267		$	41,774

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