10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended March 31, 2014

Commission file number: 001-13337

STONERIDGE, INC.

(Exact name of registrant as specified in its charter)

Ohio	34-1598949
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

xYes ¨No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

x Yes ¨No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨	Accelerated filer  x	Non-accelerated filer  ¨	Smaller reporting company  ¨
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ¨Yes x No

The number of Common Shares, without par value, outstanding as of April 30, 2014 was 28,244,497.

STONERIDGE, INC. AND SUBSIDIARIES

INDEX		Page
PART I–FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of March 31, 2014 (Unaudited) and December 31, 2013	3
	Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2014 and 2013	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2014 and 2013	5
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2014 and 2013	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
PART II–OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	28
Signatures		29
Index to Exhibits		29
EX – 10.1
EX – 31.1
EX – 31.2
EX – 32.1
EX – 32.2

101	XBRL Exhibits :
101.INS	XBRL Instance Document
101.SCH	XBRL Schema Document
101.CAL	XBRL Calculation Linkbase Document
101.DEF	XBRL Definition Linkbase Document
101.LAB	XBRL Labels Linkbase Document
101.PRE	XBRL Presentation Linkbase Document

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31,			December 31,
(in thousands)	2014			2013
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	48,427		$	62,825
Accounts receivable, less reserves of $3,693 and $3,514, respectively		150,599			133,736
Inventories, net		129,644			114,058
Prepaid expenses and other current assets		33,728			29,617
Total current assets		362,398			340,236
Long-term assets:
Property, plant and equipment, net		109,602			110,872
Other assets:
Intangible assets, net		70,002			68,842
Goodwill		60,408			58,521
Investments and other long-term assets, net		10,546			9,851
Total long-term assets		250,558			248,086
Total assets	$	612,956		$	588,322
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of debt	$	21,559		$	12,187
Accounts payable		91,245			84,884
Accrued expenses and other current liabilities		58,905			56,651
Total current liabilities		171,709			153,722
Long-term liabilities:
Long-term debt, net		184,077			185,045
Deferred income taxes		57,844			57,026
Other long-term liabilities		4,429			3,995
Total long-term liabilities		246,350			246,066
Shareholders' equity:
Preferred Shares, without par value, authorized 5,000 shares, none issued		-			-
Common Shares, without par value, authorized 60,000 shares, issued  28,851 and 28,803 shares and outstanding 28,244 and 28,483 shares at  March 31, 2014 and December 31, 2013, respectively, with no stated value		-			-
Additional paid-in capital		188,909			187,742
Common Shares held in treasury, 607 and 320 shares at March 31,  2014 and December 31, 2013, respectively, at cost		(1,193	)		(519	)
Accumulated deficit		(6,303	)		(7,771	)
Accumulated other comprehensive loss		(26,423	)		(30,458	)
Total Stoneridge Inc. shareholders' equity		154,990			148,994
Noncontrolling interest		39,907			39,540
Total shareholders' equity		194,897			188,534
Total liabilities and shareholders' equity	$	612,956		$	588,322

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended March 31 (in thousands, except per share data)	2014			2013
Net sales	$	236,389		$	235,710
Costs and expenses:
Cost of goods sold		181,600			176,981
Selling, general and administrative		47,221			48,437
Operating income		7,568			10,292
Interest expense, net		4,940			4,574
Equity in earnings of investee		(238	)		(201	)
Other expense, net		1,946			617
Income before income taxes		920			5,302
Provision for income taxes		430			1,019
Net income		490			4,283
Net income (loss) attributable to noncontrolling interest		(978	)		160
Net income attributable to Stoneridge, Inc.	$	1,468		$	4,123
Earnings per share attributable to Stoneridge, Inc.:
Basic	$	0.05		$	0.15
Diluted	$	0.05		$	0.15
Weighted-average shares outstanding:
Basic		26,854			26,601
Diluted		27,409			27,395

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

Three months ended March 31 (in thousands)	2014			2013
Net income	$	490		$	4,283
Other comprehensive income, net of tax:
Foreign currency translation adjustments		4,178			2,245
Unrealized gain (loss) on derivatives		(143	)		259
Other comprehensive income, net of tax		4,035			2,504
Consolidated comprehensive income		4,525			6,787
Income (loss) attributable to noncontrolling interest		(978	)		160
Comprehensive income attributable to Stoneridge, Inc.	$	5,503		$	6,627

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three months ended March 31 (in thousands)	2014			2013
OPERATING ACTIVITIES:
Net income	$	490		$	4,283
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation		6,742			7,417
Amortization, including accretion of debt discount		1,434			1,763
Deferred income taxes		421			(912	)
Earnings of equity method investee		(238	)		(201	)
Loss (gain) on sale of fixed assets		26			(12	)
Share-based compensation expense		1,163			1,387
Changes in operating assets and liabilities:
Accounts receivable, net		(16,425	)		(17,395	)
Inventories, net		(13,677	)		(6,781	)
Prepaid expenses and other		(4,285	)		(4,958	)
Accounts payable		6,316			8,795
Accrued expenses and other		1,842			6,020
Net cash used for operating activities		(16,191	)		(594	)
INVESTING ACTIVITIES:
Capital expenditures		(4,586	)		(5,818	)
Proceeds from sale of fixed assets		14			16
Net cash used for investing activities		(4,572	)		(5,802	)
FINANCING ACTIVITIES:
Revolving credit facility payments		-			(1,160	)
Proceeds from issuance of other debt		10,592			13,386
Repayments of other debt		(3,515	)		(2,690	)
Repurchase of Common Shares to satisfy employee tax withholding		(673	)		(671	)
Net cash provided by financing activities		6,404			8,865
Effect of exchange rate changes on cash and cash equivalents		(39	)		(300	)
Net change in cash and cash equivalents		(14,398	)		2,169
Cash and cash equivalents at beginning of period		62,825			44,555
Cash and cash equivalents at end of period	$	48,427		$	46,724
Supplemental disclosure of non-cash financing activities:
Change in fair value of interest rate swap	$	144		$	(103	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

(1) Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the SEC's rules and regulations. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year.

Although the Company believes that the disclosures are adequate to make the information presented not misleading, it is suggested that these condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Form 10-K for the year ended December 31, 2013.

(2) Inventories

Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or market. The Company evaluates and adjusts as necessary its excess and obsolescence reserve at a minimum on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period.

Inventory cost includes material, labor and overhead. Inventories consisted of the following:

	March 31,		December 31,
	2014		2013
Raw materials	$	80,888	$	71,631
Work-in-progress		17,683		16,168
Finished goods		31,073		26,259
Total inventories, net	$	129,644	$	114,058

Inventory valued using the FIFO method was $73,523 and $67,750 at March 31, 2014 and December 31, 2013, respectively. Inventory valued using the average cost method was $56,121 and $46,308 at March 31, 2014 and December 31, 2013, respectively.

.

(3) Financial Instruments and Fair Value Measurements

Financial Instruments

A financial instrument is cash or a contract that imposes an obligation to deliver, or conveys a right to receive cash or another financial instrument. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of fair value because of the short maturity of these instruments. The estimated fair value of the Company's senior secured notes with a face value of $175,000 (fixed rate debt) at March 31, 2014 and December 31, 2013 was $188,800 and $190,100, respectively, and was determined using market quotes classified as Level 2 input within the fair value hierarchy.

7

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

Derivative Instruments and Hedging Activities

On March 31, 2014, the Company had open foreign currency forward contracts, fixed price commodity contracts and an interest rate swap. These contracts are used solely for hedging and not for speculative purposes. Management believes that its use of these instruments to reduce risk is in the Company's best interest.  The counterparties to these financial instruments are financial institutions with investment grade credit ratings.

Foreign Currency Exchange Rate Risk

The Company conducts business internationally and therefore is exposed to foreign currency exchange rate risk. The Company uses derivative financial instruments as cash flow and fair value hedges to mitigate its exposure to fluctuations in foreign currency exchange rates by reducing the effect of such fluctuations on foreign currency denominated intercompany transactions and other foreign currency exposures. The currencies hedged by the Company during 2014 and 2013 include the euro and Mexican peso.

In certain instances, the foreign currency forward contracts do not qualify for hedge accounting or are not designated as hedges, and therefore are marked-to-market with gains and losses recognized in the Company's condensed consolidated statement of operations as a component of other expense, net.

The Company's foreign currency forward contracts offset a portion of the gains and losses on the underlying foreign currency denominated transactions as follows:

Euro-denominated Foreign Currency Forward Contract

As of March 31, 2014 and December 31, 2013, the Company held a foreign currency forward contract with underlying notional amounts of $13,526 and $13,335, respectively, to reduce the exposure related to the Company's euro-denominated intercompany loans. This contract expires in June 2014. The euro-denominated foreign currency forward contract was not designated as a hedging instrument. For the three months ended March 31, 2014 and 2013, the Company recognized a loss of $61 and $363, respectively, in the condensed consolidated statement of operations as a component of other expense, net related to the euro-denominated contract.

Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedge

The Company holds Mexican peso-denominated foreign currency forward contracts with underlying notional amounts at March 31, 2014 totaling $33,750 which expire ratably on a monthly basis from April through December 2014, compared to $45,000 at December 31, 2013. 

These contracts were executed to hedge forecasted transactions and are accounted for as cash flow hedges. As such, the effective portion of the unrealized gain or loss is deferred and reported in the Company’s condensed consolidated balance sheets as a component of accumulated other comprehensive loss. The cash flow hedges are highly effective and the Company expects them to remain highly effective in future periods. The effectiveness of the transactions has been and will be measured on an ongoing basis using regression analysis and forecasted future Mexican peso purchases.

Commodity Price Risk - Cash Flow Hedge

To mitigate the risk of future price volatility and, consequently, fluctuations in gross margins, the Company entered into fixed price commodity contracts with a financial institution to fix the cost of a portion of the Company’s copper purchases as copper is a significant raw material.

The Company has fixed price commodity contracts at March 31, 2014 with an aggregate notional amount of 1,146 pounds, which expire on a monthly basis over the period from April through December 2014, compared to an aggregate notional amount of 1,582 pounds at December 31, 2013.

8

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

All of these contracts represent a portion of the Company’s forecasted copper purchases. These contracts were executed to hedge a portion of forecasted transactions and the contracts are accounted for as cash flow hedges. The unrealized gain or loss for the effective portion of the hedges is deferred and reported in the Company’s consolidated balance sheets as a component of accumulated other comprehensive loss while the ineffective portion, if any, is reported in the condensed consolidated statements of operations. The effectiveness of the transactions is measured on an ongoing basis using regression analysis and forecasted future copper purchases. Based upon the results of the regression analysis, the Company has concluded that these cash flow hedges are highly effective.

Interest Rate Risk - Fair Value Hedge

The Company has a fixed-to-floating interest rate swap agreement (the “Swap”) with a notional amount of $45,000 to hedge its exposure to fair value fluctuations on a portion of its senior secured notes. The Swap was designated as a fair value hedge of the fixed interest rate obligation under the Company's $175,000 9.5% senior secured notes due October 15, 2017. The critical terms of the Swap are aligned with the terms of the senior secured notes, including maturity of October 15, 2017, resulting in no hedge ineffectiveness. The unrealized gain or loss for the effective portion of the hedge is deferred and reported in the Company's condensed consolidated balance sheets as an asset or liability as applicable, with the offset to the carrying value of the senior secured notes.

Under the Swap, the Company pays a variable interest rate equal to the six-month London Interbank Offered Rate (“LIBOR”) plus 7.2% and it receives a fixed interest rate of 9.5%. The Swap requires semi-annual settlements on April 15 and October 15. The difference between amounts to be received and paid under the Swap is recognized as a component of interest expense, net on the condensed consolidated statements of operations.

The Swap reduced interest expense by $225 and $231 for the three months ended March 31, 2014 and 2013, respectively.

The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets are as follows: 

					Prepaid expenses and other
					current assets / Other				Accrued expenses and other
	Notional amounts (A)				long-term assets				current liabilities
	March 31,		December 31,		March 31,		December 31,		March 31,		December 31,
	2014		2013		2014		2013		2014		2013
Derivatives designated as hedging instruments:
Cash Flow Hedges:
Forward currency contracts	$	33,750	$	45,000	$	36	$	-	$	-	$	263
Fixed price commodity contracts		1,146		1,582	$	-	$	152	$	290	$	-
Fair Value Hedge:
Interest rate swap contract	$	45,000	$	45,000	$	937	$	793	$	-	$	-
Derivatives not designated as hedging instruments:
Forward currency contracts	$	13,526	$	13,335	$	-	$	-	$	16	$	18

(A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds.

9

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

Amounts recorded for the cash flow hedges in other comprehensive income and in net income for the three months ended March 31 are as follows: 

	Gain (loss) recorded in other comprehensive income						Gain (loss) reclassified from other comprehensive income into net income
	2014			2013			2014			2013
Derivatives designated as cash flow hedges:
Forward currency contracts	$	118		$	1,741		$	(181	)	$	675
Fixed price commodity contracts		(472	)		(745	)		(30	)		62
Total derivatives designated as cash flow hedges	$	(354	)	$	996		$	(211	)	$	737

Gains and losses reclassified from other comprehensive income into net income were recognized in cost of goods sold in the Company's condensed consolidated statements of operations.

The net deferred losses of $254 on the cash flow hedge derivatives will be reclassified from other comprehensive income to the condensed consolidated statements of operations through December 2014.  The Company has measured the ineffectiveness of the forward currency and commodity contracts and any amounts recognized in the condensed consolidated financial statements were immaterial for the three months ended March 31, 2014 and 2013.

Fair Value Measurements

The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of the inputs used.

	March 31,								December 31,
	2014								2013
	Fair values estimated using
			Level 1		Level 2		Level 3
	Fair value		inputs (A)		inputs (B)		inputs (C)		Fair value
Financial assets carried at fair value:
Interest rate swap contract	$	937	$	-	$	937	$	-	$	793
Forward currency contracts		36		-		36		-		-
Fixed price commodity contracts		-		-		-				152
Total financial assets carried at fair value	$	973	$	-	$	973	$	-	$	945
Financial liabilities carried at fair value:
Forward currency contracts	$	16	$	-	$	16	$	-	$	281
Fixed price commodity contracts		290		-		290		-		-
Total financial liabilities carried at fair value	$	306	$	-	$	306	$	-	$	281

(A) Fair values estimated using Level 1 inputs, which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company did not have any fair value estimates using Level 1 inputs at March 31, 2014 or December 31, 2013.

(B) Fair values estimated using Level 2 inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency, fixed price commodity and interest rate swap contracts, inputs include foreign currency exchange rates, commodity indexes and the six-month forward LIBOR.

(C) Fair values estimated using Level 3 inputs consist of significant unobservable inputs. The Company did not have any fair value estimates using Level 3 inputs at March 31, 2014 or December 31, 2013.

10

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

(4) Share-Based Compensation

Total compensation expense for share-based compensation arrangements recognized in the condensed consolidated statements of operations as a component of selling, general and administrative expenses was $1,163 and $1,387 for the three months ended March 31, 2014 and 2013, respectively. Of these amounts, $0 and $156 were related to the Long-Term Cash Incentive Plan “Phantom Shares” discussed in Note 9 for the three months ended March 31, 2014 and 2013, respectively.

(5) Debt

Debt consisted of the following at March 31, 2014 and December 31, 2013:

	March 31,			December 31,			Interest rates at
	2014			2013			March 31, 2014			Maturity
Revolving Credit Facility
Asset-based credit facility	$	-		$	-			N/A			Dec - 2016
Debt
Senior secured notes, net of discount
and swap fair value adjustment (A)	$	173,356		$	173,061			9.50	%		Oct - 2017
PST short-term notes		13,049			4,822			1.90% - 11.76	%		Various 2014
PST long-term notes		16,753			16,896			4.00% - 5.50	%		2014 - 2019
Suzhou note		1,448			1,487			7.39	%		Aug - 2014
Other		1,030			966
Total debt		205,636			197,232
Less: current portion		(21,559	)		(12,187	)
Total long-term debt, net	$	184,077		$	185,045

(A) Interest rate excludes the effect of the Company's interest rate swap and the accretion of debt discount.

Revolving Credit Facility

On November 2, 2007, the Company entered into an asset-based credit facility (the “Credit Facility”), which permits borrowing up to a maximum level of $100,000. The Company entered into an Amended and Restated Credit and Security Agreement and a Second Amended and Restated Credit and Security Agreement (the “Second Amended and Restated Agreement”) on September 20, 2010 and December 1, 2011, respectively. The Second Amended and Restated Agreement extended the termination date of the Credit Facility to December 1, 2016, increased the borrowing base by increasing the sublimit on eligible inventory located at Mexican facilities and made changes to certain covenants relating to, among other things, guarantees, investments, capital expenditures and permitted indebtedness. The Credit Facility requires a commitment fee of 0.375% on the unused balance. Interest is payable quarterly at either (i) the higher of the prime rate or the Federal Funds rate plus 0.50%, plus a margin of 0.00% to 0.25% or (ii) LIBOR plus a margin of 1.00% to 1.75%, depending upon the Company's undrawn availability, as defined.

11

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

The available borrowing capacity on the Credit Facility is based on eligible current assets, as defined. At March 31, 2014 and December 31, 2013, the Company had undrawn borrowing capacity of approximately $87,034 and $71,072, respectively. The Credit Facility contains financial performance covenants which would only constrain the Company’s borrowing capacity if our undrawn availability falls below $20,000. Other restrictions include limits on capital expenditures, operating leases, dividends and investment activities in negative covenants which limit investment activities to $15,000 minus certain guarantees and obligations.

The Company was in compliance with all Credit Facility covenants at March 31, 2014 and December 31, 2013.

Debt

On October 4, 2010, the Company issued $175,000 of senior secured notes which are included as a component of long-term debt, net on the condensed consolidated balance sheets. These senior secured notes bear interest at an annual rate of 9.5% and mature on October 15, 2017. The senior secured notes were issued to the original purchasers at a 2.5% discount for which the remaining balance at March 31, 2014 and December 31, 2013 was $2,582 and $2,732, respectively. The senior secured notes are redeemable in full, at the Company's option, beginning October 15, 2014 at 104.75%. Interest payments are payable on April 15 and October 15 of each year. The senior secured notes indenture limits the amount of the Company and its restricted subsidiaries' indebtedness, restricts certain payments and includes various other non-financial restrictive covenants. The senior secured notes are guaranteed by all of the Company's existing domestic restricted subsidiaries. All other restricted subsidiaries that may guarantee any indebtedness of the Company or the guarantors will also guarantee the senior secured notes.

Our consolidated subsidiary PST Eletrônica Ltda. (“PST”) maintains several short-term and long-term notes used for working capital purposes that have fixed interest rates. The weighted-average interest rates of short-term and long-term debt of PST at March 31, 2014 were 9.1% and 4.9%, respectively.  Depending on the specific note, interest is payable either monthly or annually. The PST notes at March 31, 2014 mature as follows: $19,130 in 2014, $5,184 in 2015, $2,207 in 2016 and approximately $1,094 annually in 2017, 2018 and 2019. 

On August 21, 2013, the Company's wholly-owned subsidiary located in Suzhou, China entered into a term loan for 9,000 Chinese yuan which matured in February 2014. On February 25, 2014, the subsidiary entered into a new term loan for 9,000 Chinese yuan (the “Suzhou note”). The U.S. dollar equivalent outstanding loan balance was $1,448 and $1,487 at March 31, 2014 and December 31, 2013, respectively. The Suzhou note is included on the condensed consolidated balance sheets as a component of current portion of long-term debt. The term loan matures in August 2014 with interest payable quarterly at 132.0% of the one-year lending rate published by The People's Bank of China, which was 7.39% at March 31, 2014.

The Company was in compliance with all note covenants at March 31, 2014 and December 31, 2013.

The Company's wholly-owned subsidiary located in Stockholm, Sweden, has an overdraft credit line which allows overdrafts on the subsidiary's bank account up to a maximum level of 20,000 Swedish krona, or $3,090 and $3,107, at March 31, 2014 and December 31, 2013, respectively. At March 31, 2014 and December 31, 2013, there was no balance outstanding on this bank account.

(6) Net Income Per Share

Basic net income per share was computed by dividing net income by the weighted-average number of Common Shares outstanding for each respective period. Diluted net income per share was calculated by dividing net income attributable to Stoneridge, Inc. by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented.

Weighted-average Common Shares outstanding used in calculating basic and diluted net income per share were as follows:

Three months ended March 31	2014		2013
Basic weighted-average Common Shares outstanding		26,854,017		26,601,282
Effect of dilutive shares		554,764		793,759
Diluted weighted-average Common Shares outstanding		27,408,781		27,395,041

12

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

Options not included in the computation of diluted net income per share to purchase 20,000 Common Shares at an average price of $15.73 per share were outstanding at March 31, 2014 and 2013. These outstanding options were not included in the computation of diluted net income per share because their respective exercise prices were greater than the average closing market price of Company Common Shares and the effect would be anti-dilutive.

There were 466,650 and 663,750 performance-based restricted Common Shares outstanding at March 31, 2014 and 2013, respectively. There were also 374,400 performance-based right to receive Common Shares outstanding at March 31, 2014. These shares were not included in the computation of diluted net income per share because all vesting conditions have not been achieved as of March 31, 2014 and 2013. These shares may become dilutive based on the Company’s ability to meet or exceed future performance targets.

(7) Changes in Accumulated Other Comprehensive Loss by Component

Changes in accumulated other comprehensive loss for the three months ended March 31, 2014 and 2013 were as follows:

	Foreign						Benefit
	currency						plan
	translation			Derivatives			liability			Total
Balance at January 1, 2014	$	(30,335	)	$	(111	)	$	(12	)	$	(30,458	)
Other comprehensive income (loss) before reclassifications		4,178			(354	)		-			3,824
Amounts reclassified from accumulated other comprehensive loss		-			211			-			211
Net other comprehensive income (loss), net of tax		4,178			(143	)		-			4,035
Balance at March 31, 2014	$	(26,157	)	$	(254	)	$	(12	)	$	(26,423	)
Balance at January 1, 2013	$	(12,410	)	$	2,140		$	(12	)	$	(10,282	)
Other comprehensive income before reclassifications		2,245			996			-			3,241
Amounts reclassified from accumulated other comprehensive loss		-			(737	)		-			(737	)
Net other comprehensive income, net of tax		2,245			259			-			2,504
Balance at March 31, 2013	$	(10,165	)	$	2,399		$	(12	)	$	(7,778	)

(8)  Commitments and Contingencies

In the ordinary course of business, the Company is subject to a broad range of claims and legal proceedings that relate to contractual allegations, tax audits, patent infringement, product liability and employment-related matters. Although it is not possible to predict with certainty the outcome of these matters, the Company is of the opinion that the ultimate resolution of these matters will not have a material adverse affect on its consolidated results of operations or financial position.

As a result of environmental studies performed at the Company’s former facility located in Sarasota, Florida, the Company became aware of soil and groundwater contamination at the Company site. The Company engaged an environmental engineering consultant to assess the level of contamination and to develop a remediation and monitoring plan for the site. Soil remediation at the site was completed during the year ended December 31, 2010. Ground water remediation will begin in the second quarter of 2014, as the remedial action plan has been approved by the Florida Department of Environmental Protection. During the three months ended March 31, 2014 and 2013, environmental remediation costs incurred were immaterial. At March 31, 2014 and December 31, 2013, the Company had accrued an undiscounted liability of $944 related to future remediation. At March 31, 2014 and December 31, 2013, $683 was recorded as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets while the remaining amount was recorded as a component of other long-term liabilities. A majority of the costs associated with the recorded liability will be incurred at the start of the groundwater remediation, with the balance relating to monitoring costs to be incurred over multiple years. Although the Company sold the Sarasota facility and related property in December 2011, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the closing terms of the sale agreement included a requirement for the Company to maintain a $2,000 letter of credit for the benefit of the buyer.

13

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

In September 2013, a legal proceeding was initiated by Actia in a French court alleging infringement of its patents by the Company’s Electronics segment. Actia is seeking injunctive relief and monetary damages of approximately $19,000 resulting from such alleged infringement. The Company believes that its products did not infringe on any of the patents claimed by Actia. The Company believes Actia’s claims are without merit, and therefore is vigorously defending itself against these allegations.

On May 24, 2013, the State Revenue Services of São Paulo issued a tax deficiency notice against PST, our 74% owned consolidated subsidiary, claiming that the vehicle tracking and monitoring services it provides should be classified as communication services, and therefore subject to the State Value Added Tax – ICMS. The State Revenue Services assessment imposed the 25.0% ICMS tax on all revenues of PST related to the vehicle tracking and monitoring services during the period from January 2009 through December 2010. The Brazilian real (“R$”) and U.S. dollar equivalent (“$”) of the aggregate tax assessment is approximately R$92,500 ($40,900) which is comprised of Value Added Tax – ICMS of R$13,200 ($5,800), interest of R$11,400 ($5,100) and penalties of R$67,900 ($30,000).

The Company believes that the vehicle tracking and monitoring services are non-communication services, as defined under Brazilian tax law, subject to the municipal ISS tax, not communication services subject to state ICMS tax as claimed by the State Revenue Services of São Paulo. PST has, and will continue to collect the municipal ISS tax on the vehicle tracking and monitoring services in compliance with Brazilian tax law and will defend its tax position. PST has received a legal opinion that the merits of the case are favorable to PST, determining among other things that the imposition on the subsidiary of the State ICMS by the State Revenue Services of São Paulo is not in accordance with the Brazilian tax code. Management believes, based on the legal opinion of PST’s Brazilian legal counsel and the results of the Brazil Administrative Court's ruling in favor of another vehicle tracking and monitoring company related to the tax deficiency notice it received, the likelihood of loss is not probable although it may take years to resolve.  As a result of the above, as of March 31, 2014 and December 31, 2013, no accrual has been recorded with respect to the tax assessment.  An unfavorable judgment on this issue for the years assessed and for subsequent years could result in significant costs to PST and adversely affect its results of operations.

In addition, PST has civil, labor and other tax contingencies for which the likelihood of loss is deemed to be reasonably possible, but not probable, by its legal advisors. As a result, no provision has been recorded with respect to these contingencies, which amounted to $13,633 and $11,469 at March 31, 2014 and December 31, 2013, respectively. An unfavorable outcome on this issue could result in significant cost to PST and adversely affect its results of operations.

Product Warranty and Recall

Amounts accrued for product warranty and recall claims are established based on the Company's best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The current portion of product warranty and recall is included as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets. Product warranty and recall included $1,133 and $1,019 of a long-term liability at March 31, 2014 and December 31, 2013, respectively, which is included as a component of other long-term liabilities on the condensed consolidated balance sheets.

14

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

The following provides a reconciliation of changes in product warranty and recall liability:

Three months ended March 31	2014			2013
Product warranty and recall at beginning of period	$	6,481		$	6,107
Accruals for products shipped during period		1,190			1,079
Aggregate changes in pre-existing liabilities due to claim developments		264			529
Settlements made during the period (in cash or in kind)		(540	)		(1,498	)
Product warranty and recall at end of period	$	7,395		$	6,217

(9) Employee Benefit Plans

Long-Term Cash Incentive Plan

In March 2009, the Company adopted the Stoneridge, Inc. Long-Term Cash Incentive Plan (“LTCIP”) and granted awards to certain officers and key employees. In May 2009, the LTCIP was approved by the Company's shareholders.

The Company granted awards under the LTCIP in 2013 which provided recipients with the right to receive an amount of cash equal to the fair market value of a specific number of Phantom Shares three years from the date of grant depending on the Company's actual earnings per share performance for each fiscal year of 2013, 2014, and 2015 within the performance period. The Company records an accrual for awards to be paid in the period earned based on anticipated achievement of the performance goal. If the participant voluntarily terminates employment or is discharged for cause, as defined in the LTCIP, the award is forfeited. There was no accrual recorded related to the LTCIP at March 31, 2014 for the 2013 or 2014 performance periods.

(10) Income Taxes

The Company adjusts its effective tax rate each quarter based on the estimated annual effective tax rate, as required. The Company also records the tax impact of certain discrete, unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year where no tax benefit can be recognized are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projected earnings.

The Company recognized a provision for income taxes of $430, or 46.7%, and $1,019, or 19.2%, of income before income taxes, for federal, state and foreign income taxes for the three months ended March 31, 2014 and 2013, respectively. The decrease in the tax provision was primarily due to lower income before income taxes in the current period compared to the same period for 2013 primarily due to the loss incurred by PST. The reduction in income tax expense was partially offset by discrete tax items related to certain foreign operations recorded during the current period. The increase in the effective tax rate for the three months ended March 31, 2014 compared to the same period for 2013 was primarily attributable to the negative impact of recognizing a tax benefit on the PST loss at a local tax rate lower than the Company’s statutory rate as well as the impact of the discrete tax items referenced above.

15

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

(11) Segment Reporting

Operating segments are defined as components of an enterprise that are evaluated regularly by the Company's chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is the chief executive officer.

The Company has four reportable segments: Control Devices, Electronics, Wiring and PST which also represents its operating segments. The Control Devices reportable segment produces sensors, switches, valves and actuators. The Electronics reportable segment produces electronic instrument clusters, electronic control units and driver information systems. The Wiring reportable segment produces electrical power and signal distribution systems, primarily wiring harnesses, connectors and instrument panel assemblies. The PST reportable segment designs and manufactures electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services and in-vehicle audio and video devices.

The accounting policies of the Company's reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” of the Company's December 31, 2013 Form 10-K. The Company's management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and income before income taxes. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

16

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

A summary of financial information by reportable segment is as follows:

Three months ended March 31	2014			2013
Net Sales:
Control Devices	$	77,323		$	71,913
Inter-segment sales		752			796
Control Devices net sales		78,075			72,709
Electronics		50,091			44,520
Inter-segment sales		11,757			10,866
Electronics net sales		61,848			55,386
Wiring		75,059			76,848
Inter-segment sales		1,875			1,603
Wiring net sales		76,934			78,451
PST		33,916			42,429
Inter-segment sales		-			-
PST net sales		33,916			42,429
Eliminations		(14,384	)		(13,265	)
Total net sales	$	236,389		$	235,710
Income (Loss) Before Income Taxes:
Control Devices	$	6,835		$	6,267
Electronics		3,619			3,782
Wiring		(618	)		(427	)
PST		(5,612	)		483
Other corporate activities		697			(864	)
Corporate interest expense		(4,001	)		(3,939	)
Total income before income taxes	$	920		$	5,302
Depreciation and Amortization:
Control Devices	$	2,371		$	2,535
Electronics		1,101			1,279
Wiring		1,255			1,211
PST		3,169			3,832
Corporate		45			48
Total depreciation and amortization (A)	$	7,941		$	8,905
Interest Expense, net:
Control Devices	$	61		$	47
Electronics		199			187
Wiring		11			124
PST		668			277
Corporate		4,001			3,939
Total interest expense, net	$	4,940		$	4,574
Capital Expenditures:
Control Devices	$	1,734		$	3,240
Electronics		647			469
Wiring		479			516
PST		1,667			1,466
Corporate		59			127
Total capital expenditures	$	4,586		$	5,818

17

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

	March 31,			December 31,
	2014			2013
Total Assets:
Control Devices	$	117,551		$	105,730
Electronics		110,638			105,352
Wiring		113,048			98,180
PST		248,070			237,649
Corporate (B)		294,583			308,167
Eliminations		(270,934	)		(266,756	)
Total assets	$	612,956		$	588,322

(A) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets.

(B) Assets located at Corporate consist primarily of cash, intercompany loan receivables, equity investments and investments in subsidiaries.

The following table presents net sales and long-term assets for each of the geographic areas in which the Company operates:

Three months ended March 31	2014		2013
Net Sales:
North America	$	155,330	$	153,099
South America		33,916		42,429
Europe and Other		47,143		40,182
Total net sales	$	236,389	$	235,710

	March 31,		December 31,
	2014		2013
Long-term Assets:
North America	$	76,289	$	79,219
South America		158,108		154,226
Europe and Other		16,161		14,641
Total long-term assets	$	250,558	$	248,086

(12) Investments

Minda Stoneridge Instruments Ltd.

The Company has a 49% interest in Minda Stoneridge Instruments Ltd. (“Minda”), a company based in India that manufactures electronics, instrumentation equipment and sensors primarily for the motorcycle and commercial vehicle market. The investment is accounted for under the equity method of accounting. The Company's investment in Minda recorded as a component of investments and other long-term assets, net on the condensed consolidated balance sheets, was $6,417 and $5,981 at March 31, 2014 and December 31, 2013, respectively. Equity in earnings of Minda included in the condensed consolidated statements of operations was $238 and $201, for the three months ended March 31, 2014 and 2013, respectively.

18

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise indicated)

(Unaudited)

PST Eletrônica Ltda.

The Company has a 74% controlling interest in PST. Noncontrolling interest in PST increased by $367 to $39,907 at March 31, 2014 due to a favorable change in foreign currency translation of $1,345, which was partially offset by a proportionate share of its net loss of $978 for the three months ended March 31, 2014. Noncontrolling interest in PST increased by $601 to $44,677 at March 31, 2013 due to a favorable change in foreign currency translation of $647 and a proportionate share of its net income of $165 for the three months ended March 31, 2013, which were partially offset by a dividend of $211. Comprehensive income related to the PST noncontrolling interest was $367 and $812 for the three months ended March 31, 2014 and 2013, respectively.

(13)  Recently Issued Accounting Standards

Accounting Standards Adopted

In July 2013, the Financial Accounting Standards Board issued an accounting standards update requiring entities to present in the financial statements an unrecognized tax benefit, or a portion of an unrecognized tax benefit as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except to the extent such items are not available or not intended to be used at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position. In such instances, the unrecognized tax benefit is required to be presented in the financial statements as a liability and not be combined with deferred tax assets. This standards update is effective for fiscal years beginning after December 15, 2013. We adopted this standards update on January 1, 2014 which did not have a material impact on our condensed consolidated financial statements.

19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Background

We are a global designer and manufacturer of highly engineered electrical and electronic components, modules and systems for the commercial, automotive, agricultural, motorcycle and off-highway vehicle markets.

Segments

We are primarily organized by products produced and markets served. Under this structure, our operations have been reported utilizing the following segments:

Control Devices. This segment includes results of operations that manufacture sensors, switches, valves and actuators.

Electronics. This segment includes results of operations from the production of electronic instrument clusters, electronic control units and driver information systems.

Wiring. This segment includes results of operations that produce electrical power and signal distribution systems, primarily wiring harnesses and connectors and assemble instrument panels.

PST. This segment includes results of operations that design and manufacture electronic vehicle alarms, convenience accessories, vehicle tracking devices and monitoring services and in-vehicle audio and video devices.

First Quarter Overview

Stoneridge, Inc. had net income of $1.5 million, or $0.05 per diluted share for the first quarter of 2014, a $2.6 million, or $0.10 per diluted share decrease from $4.1 million, or $0.15 per diluted share for the first quarter of 2013.

The decrease in first quarter earnings compared to the first quarter of 2013 was primarily due to lower earnings of our PST segment. PST earnings were negatively impacted by an unfavorable change in mix of products sold, unfavorable changes in foreign currency translation and to a lesser extent lower sales resulting from weakness in the Brazilian economy which negatively affected consumer demand and automotive production.

Net sales increased by $0.7 million, or 0.3%, primarily attributable to $5.2 million from higher sales to our European commercial vehicle customers and higher volume in our North American commercial and automotive vehicle markets of $4.0 million and $3.9 million, respectively. These net sales increases were offset by unfavorable changes in foreign currency translation of approximately $6.3 million and lower product sales volume attributed to PST as well as decreased sales volume to our North American agricultural vehicle customers during the first quarter of 2014 compared to the first quarter of 2013.

At March 31, 2014 and December 31, 2013, we maintained a cash and cash equivalents balance of $48.4 million and $62.8 million, respectively. The decrease was primarily due to an increase in working capital levels. As discussed in Note 5 to the condensed consolidated financial statements, at March 31, 2014 and December 31, 2013, we had no borrowings outstanding on our asset-based credit facility (the “Credit Facility”). We had undrawn borrowing capacity on the Credit Facility of $87.0 million and $71.1 million at March 31, 2014 and December 31, 2013, respectively.

Outlook

The North American automotive vehicle market is expected to continue to modestly improve in 2014. For 2014, this production volume is forecasted to be in the range of 16.2 million to 16.8 million units, an increase from 16.2 million units in 2013. The improvement in the North American automotive vehicle market and sales of new products should have a favorable effect on our Control Devices segment’s results in 2014.

20

The North American commercial vehicle market showed weakness throughout 2013, which we expect will continue in 2014. Also, our commercial vehicle sales will be impacted by any change in market share of a significant customer.

The European commercial vehicle market modestly improved in the first quarter of 2014 which is expected to continue throughout 2014 and have a favorable impact on our Electronics segment.

Agricultural vehicle production showed weakness for both the first quarter of 2013 and 2014 which unfavorably affected our Wiring segment. This weakness is expected to continue for the remainder of 2014.

Our PST segment revenues decreased in the first quarter of 2014 compared to 2013 due to a weakened Brazilian economy which negatively affected consumer demand and automotive production. As there is significant uncertainty regarding the recovery of the Brazilian economy in 2014, PST is realigning its cost structure to mitigate the impact on earnings of possible continued lower product demand for the remainder of 2014.

Due to the competitive nature of the markets we serve, in the ordinary course of business we face pricing pressures from our customers. In response to these pricing pressures we have been able to effectively manage our production costs by the combination of lowering certain costs and limiting the increase of others, the net impact of which has not been material. However, if we are unable to effectively manage production costs in the future to mitigate future pricing pressures, our results of operations would be adversely affected.

Three Months Ended March 31, 2014 Compared to Three Months Ended March 31, 2013

Condensed consolidated statements of operations as a percentage of net sales are presented in the following table (in thousands):

											Dollar
											increase /
Three months ended March 31	2014					2013					(decrease)
Net sales	$	236,389		100.0	%	$	235,710		100.0	%	$	679
Costs and expenses:
Cost of goods sold		181,600		76.8			176,981		75.1			4,619
Selling, general and administrative		47,221		20.0			48,437		20.5			(1,216	)
Operating income		7,568		3.2			10,292		4.4			(2,724	)
Interest expense, net		4,940		2.1			4,574		2.0			366
Equity in earnings of investee		(238	)	(0.1	)		(201	)	(0.1	)		(37	)
Other expense, net		1,946		0.8			617		0.3			1,329
Income before income taxes		920		0.4			5,302		2.2			(4,382	)
Provision for income taxes		430		0.2			1,019		0.4			(589	)
Net income		490		0.2			4,283		1.8			(3,793	)
Net income (loss) attributable to  noncontrolling interest		(978	)	(0.4	)		160		0.1			(1,138	)
Net income attributable to Stoneridge, Inc.	$	1,468		0.6	%	$	4,123		1.7	%	$	(2,655	)

21

Net Sales. Net sales for our reportable segments, excluding inter-segment sales, are summarized in the following table (in thousands):

									Dollar			Percent
									increase /			increase /
Three months ended March 31	2014				2013				(decrease)			(decrease)
Control Devices	$	77,323	32.7	%	$	71,913	30.5	%	$	5,410			7.5	%
Electronics		50,091	21.2			44,520	18.9			5,571			12.5	%
Wiring		75,059	31.8			76,848	32.6			(1,789	)		(2.3	)%
PST		33,916	14.3			42,429	18.0			(8,513	)		(20.1	)%
Total net sales	$	236,389	100.0	%	$	235,710	100.0	%	$	679			0.3	%

Our Control Devices segment sales increased primarily due to higher volume primarily in our North American automotive and commercial vehicle markets of $3.5 million and $1.7 million, respectively, during the first quarter of 2014 when compared to the first quarter of 2013.

Our Electronics segment net sales increased primarily due to a $5.2 million increase in sales of our European commercial vehicle products resulting from higher volume and new product sales for the first quarter of 2014 when compared to the first quarter of 2013.

Our Wiring segment sales decreased due to volume decreases in our agricultural products of $2.9 million, partially offset by a volume increase in specialty vehicle products.

Our PST segment sales decreased due to an unfavorable change in foreign currency translation which reduced sales by $6.3 million, or 14.8%, as well as lower product volume primarily in its aftermarket and OEM channels.

Net sales by geographic location are summarized in the following table (in thousands):

									Dollar			Percent
									increase /			increase /
Three months ended March 31	2014				2013				(decrease)			(decrease)
North America	$	155,330	65.7	%	$	153,099	65.0	%	$	2,231			1.5	%
South America		33,916	14.3			42,429	18.0			(8,513	)		(20.1	)%
Europe and Other		47,143	20.0			40,182	17.0			6,961			17.3	%
Total net sales	$	236,389	100.0	%	$	235,710	100.0	%	$	679			0.3	%

The North American geographic location consists of the results of our operations in the United States and Mexico.

The increase in North American net sales was primarily attributable to increased sales volume in our North American automotive and commercial vehicle markets within our Control Devices segment of $3.5 million and $1.7 million, respectively, which was partially offset by lower North American agricultural vehicle sales of approximately $2.9 million. Our decrease in net sales in South America was primarily due to an unfavorable foreign currency translation and was negatively impacted by lower PST product sales volume. Our increase in net sales in Europe and Other was primarily due to increased sales of European commercial vehicle market products of $5.2 million and favorable foreign currency translation.

Cost of Goods Sold and Gross Margin. Cost of goods sold increased by 2.6% primarily due to higher material and labor costs. Our material cost as a percentage of net sales increased to 52.0% for the first quarter of 2014 compared to 50.5% for the first quarter of 2013. Our gross margin decreased to 23.2% for the first quarter of 2014 compared to 24.9% for the first quarter of 2013 due to an unfavorable change in mix of products sold and higher material and labor costs.

Our Control Devices segment gross margin increased due to increased sales volume.

22

Our Electronics segment gross margin decreased despite a 12.5% increase in sales due to an unfavorable change in mix of products sold.

Our Wiring segment gross margin declined due to increased labor inefficiencies combined with lower sales volume.

Our PST segment gross margin declined due to an unfavorable change in mix of products sold and lower sales volume.

Selling, General and Administrative (“SG&A”) Expenses. SG&A expenses decreased by $1.2 million for the first quarter of 2014 compared to the prior year first quarter due to decreases in sales, general and administrative costs of $2.1 million primarily related to foreign currency translation at PST, which was offset by increased product development expenses of $0.9 million primarily in our Control Devices and Electronics segments.

Interest Expense, net. Interest expense, net increased by $0.4 million during the first quarter of 2014 when compared to the prior year first quarter due to higher interest on our PST term notes due to higher average outstanding loan balances.

Equity in Earnings of Investee. Equity earnings for Minda were $0.2 million for both the first quarter of 2014 and 2013.

Other Expense, net. We record certain foreign currency transaction and forward currency hedge contract gains and losses as a component of other expense, net on the condensed consolidated statement of operations. Our results for the three months ended March 31, 2014 and 2013 were unfavorably affected by approximately $1.9 million and $0.6 million due to the volatility in certain foreign exchange rates. Substantially all of the unfavorable foreign currency loss for the first quarter of 2014 was related to the translation of the Argentinian peso related to PST.

Income Before Income Taxes. Income (loss) before income taxes is summarized in the following table by reportable segment (in thousands):

							Dollar			Percent
							increase /			increase /
Three months ended March 31	2014			2013			(decrease)			(decrease)
Control Devices	$	6,835		$	6,267		$	568			9.1	%
Electronics		3,619			3,782			(163	)		(4.3	)%
Wiring		(618	)		(427	)		(191	)		(44.7	)%
PST		(5,612	)		483			(6,095	)		NM
Other corporate activities		697			(864	)		1,561			180.7	%
Corporate interest expense		(4,001	)		(3,939	)		(62	)		(1.6	)%
Income before income taxes	$	920		$	5,302		$	(4,382	)		(82.6	)%

NM – not meaningful

Our Control Devices segment income before income taxes increased due to higher sales partially offset by higher SG&A expenses, primarily design and development costs.

Our Electronics segment income before income taxes decreased slightly as the increase in sales was more than offset by an unfavorable change in mix of products sold and higher design and development costs.

Our Wiring segment income before income taxes decreased slightly primarily due to lower sales combined with higher labor costs.

Our PST segment decrease in profitability is primarily due to an unfavorable change in mix of products sold, an unfavorable impact of foreign currency translation and to a lesser extent lower sales volume and higher interest expense, which were partially offset by lower SG&A expenses.

23

The increase in income before income taxes from other corporate activities is primarily related to lower share-based and performance-based compensation related expenses.

Income before income taxes by geographic location is summarized in the following table (in thousands):

										Dollar			Percent
										increase /			increase /
Three months ended March 31	2014					2013				(decrease)			(decrease)
North America	$	4,881		530.5	%	$	2,682	50.6	%	$	2,199			82.0	%
South America		(5,612	)	(610.0	)		483	9.1			(6,095	)		NM
Europe and Other		1,651		179.5			2,137	40.3			(486	)		(22.7	)%
Income before income taxes	$	920		100.0	%	$	5,302	100.0	%	$	(4,382	)		(82.6	)%

North American income before income taxes includes interest expense, net of approximately $3.9 million for each of the quarters ended March 31, 2014 and 2013, respectively.

Our North American results increased primarily as a result of increased sales in the North American automotive and commercial vehicle markets, which were substantially offset by lower sales in our North American agricultural vehicle market and higher labor costs in our Wiring segment. The decrease in profitability in South America was primarily due to an unfavorable change in mix of products sold, an unfavorable impact of foreign currency translation and to a lesser extent lower sales volume. Our results in Europe and Other were negatively affected by an unfavorable mix of product sales and higher design and development costs.

Provision for Income Taxes. We recognized a provision for income taxes of $0.4 million, or 46.7%, and $1.0 million, or 19.8%, for federal, state and foreign income taxes for the first quarter of 2014 and 2013, respectively. The decrease in the tax provision was due to lower income before income taxes in the current period compared to the same period for 2013 primarily due to the loss incurred by PST. The reduction in income tax expense was partially offset by discrete tax items related to certain foreign operations recorded during the current period. The increase in the effective tax rate for the three months ended March 31, 2014 compared to the same period for 2013 was primarily attributable to the negative impact of recognizing a tax benefit on the PST loss at a local tax rate lower than the statutory rate as well as the impact of the discrete tax items referenced above.

Liquidity and Capital Resources

Summary of Cash Flows (in thousands): 

							Dollar
							increase /
Three months ended March 31	2014			2013			(decrease)
Net cash provided by (used for):
Operating activities	$	(16,191	)	$	(594	)	$	(15,597	)
Investing activities		(4,572	)		(5,802	)		1,230
Financing activities		6,404			8,865			(2,461	)
Effect of exchange rate changes on cash and cash equivalents		(39	)		(300	)		261
Net change in cash and cash equivalents	$	(14,398	)	$	2,169		$	(16,567	)

The decrease in cash provided by operating activities for the first quarter of 2014 compared to the first quarter of 2013 was due to maintaining higher working capital levels, primarily inventory of $6.9 million at our PST and Wiring segments, a $3.8 million decrease in net income and a decrease in the growth of accrued expenses and accounts payable totaling $6.7 million, partially offset by a decrease in accounts receivable of $1.0 million. Our receivable terms and collections rates have remained consistent between periods presented.

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The decrease in net cash used for investing activities for the first quarter of 2014 reflects a $1.2 million decrease in cash used for capital projects.

The decrease in net cash provided by financing activities was primarily due to lower PST term loan borrowings.

On October 4, 2010, we issued $175.0 million of senior secured notes. These senior secured notes bear interest at an annual rate of 9.5% and mature on October 15, 2017. The senior secured notes are redeemable, at our option, beginning October 15, 2014 at 104.75%. Interest payments are payable on April 15 and October 15 of each year. The senior secured notes indenture limits our restricted subsidiaries' amount of indebtedness, restricts certain payments and includes various other non-financial restrictive covenants, which to date have not been and are not expected to have an impact on our financing flexibility. The senior secured notes are guaranteed by all of our existing domestic restricted subsidiaries. All other restricted subsidiaries that guarantee any of our or our guarantors' indebtedness will also guarantee the senior secured notes.

On October 4, 2010, we entered into a fixed-to-variable interest rate swap agreement (the “Swap”) with a notional amount of $45.0 million. The Swap was designated as a fair value hedge of the fixed interest rate obligation under our $175.0 million 9.5% senior secured notes due October 15, 2017. We pay variable interest equal to the six-month LIBOR plus 7.19% and we receive a fixed interest rate of 9.5% under the Swap. The critical terms of the Swap match the terms of the senior secured notes, including maturity of October 15, 2017, resulting in no hedge ineffectiveness.

As outlined in Note 5 to our condensed consolidated financial statements, our asset-based credit facility (the “Credit Facility”) permits borrowing up to a maximum level of $100.0 million. This facility provides us with lower borrowing rates and allows us the flexibility to refinance other outstanding debt. At March 31, 2014 and December 31, 2013, there were no borrowings outstanding. The available borrowing capacity on our Credit Facility is based on eligible current assets, as defined. At March 31, 2014, we had undrawn borrowing capacity of $87.0 million based on eligible current assets. The Credit Facility contains financial performance covenants which would only constrain our borrowing capacity if our undrawn availability falls below $20.0 million. However, restrictions do include limits on capital expenditures, operating leases, dividends and investment activities in a negative covenant which limits investment activities to $15.0 million minus certain guarantees and obligations. The Company was in compliance with all covenants at March 31, 2014. The covenants included in our Credit Facility to date have not and are not expected to limit our financing flexibility.

PST maintains several short-term and long-term loans used for working capital purposes. At March 31, 2014, there was $29.8 million outstanding on the PST term loans.  The PST loans at March 31, 2014 mature as follows: $19.1 million in 2014, $5.2 million in 2015, $2.2 million in 2016 and approximately $1.1 million annually in 2017, 2018 and 2019.

The term loan for our Suzhou, China subsidiary is in the amount of 9.0 million Chinese yuan, which U.S. dollar equivalent outstanding balance was approximately $1.4 million at March 31, 2014, and is included on the condensed consolidated balance sheet as a component of current portion long-term debt. The term loan matures in August 2014. Interest is payable monthly at the one-year lending rate published by The People's Bank of China 132.0%. At March 31, 2014, the interest rate on the term loan was 7.39%.

The Company's wholly owned subsidiary located in Stockholm, Sweden, has an overdraft credit line which allows overdrafts on the subsidiary's bank account up to a maximum level of 20.0 million Swedish krona, or $3.1 million, at March 31, 2014. At March 31, 2014, there were no overdrafts on the bank account.

Although the Company's notes and credit facilities contain various covenants, the violation of which would limit or preclude their use or accelerate the maturity, the Company has not experienced and does not expect these covenants to restrict our financing flexibility. The Company has been and expects to continue to remain in compliance with these covenants during the term of the notes and credit facilities.

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Our future results could be unfavorably affected by increased commodity prices, specifically copper as copper fluctuations impact the cost of our raw material purchases. We entered into fixed price commodity contracts for a portion of our 2014 copper purchases and have a portion of our 2014 sales subject to copper surcharge billings which would mitigate a portion of raw material cost increases. Our 2014 results could also be adversely affected by unfavorable foreign currency exchange rates. We have significant foreign denominated transaction exposure in certain locations, especially in Brazil, Argentina, Mexico and Sweden. We have entered into foreign currency forward contracts and maintain Mexican peso- and euro-denominated cash balances to reduce our exposure related to foreign currency fluctuations.

At March 31, 2014, we had a cash and cash equivalents balance of approximately $48.4 million, of which $18.2 million was held domestically and $30.2 million was held in foreign locations. The decrease from $62.8 million at December 31, 2013 was due to an increase in working capital levels. Our cash balance was not restricted at March 31, 2014.

Commitments and Contingencies

See Note 8 to the condensed consolidated financial statements for disclosures of the Company’s commitments and contingencies.

Seasonality

Our Control Devices, Electronics and Wiring segments are not typically materially impacted by seasonality, however the demand for our PST segment consumer products is typically higher in the second half of the year, the fourth quarter in particular.

Critical Accounting Policies and Estimates

The Company's critical accounting policies, which include management's best estimates and judgments, are included in Part II, Item 7, to the consolidated financial statements of the Company's 2013 Form 10-K. These accounting policies are considered critical as disclosed in the Critical Accounting Policies and Estimates section of Management's Discussion and Analysis of the Company's 2013 Form 10-K because of the potential for a significant impact on the financial statements due to the inherent uncertainty in such estimates.

Information regarding other significant accounting policies is included in Note 2 to our consolidated financial statements in Item 8 of Part II of the Company’s 2013 Form 10-K.

Inflation and International Presence

Given the current economic climate and recent fluctuations in certain commodity prices, we believe that an increase in such items could significantly affect our profitability.  Furthermore, by operating internationally, we are affected by foreign currency exchange rates and the economic conditions of certain countries.

Forward-Looking Statements

Portions of this report contain “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and include statements regarding the intent, belief or current expectations of the Company, our directors or officers with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition or divestiture strategy, (iii) investments and new product development, and (iv) growth opportunities related to awarded business. Forward-looking statements may be identified by the words “will,” “may,” “should,” “designed to,” “believes,” “plans,” “projects,” “intends,” “expects,” “estimates,” “anticipates,” “continue,” and similar words and expressions. The forward-looking statements in this report are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by the statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:

• the reduced purchases, loss or bankruptcy of a major customer;

• the costs and timing of facility closures, business realignment, or similar actions;

26

• a significant change in commercial, automotive, agricultural, motorcycle or off-highway vehicle production;

• competitive market conditions and resulting effects on sales and pricing;

• the impact on changes in foreign currency exchange rates on sales, costs and results, particularly the Brazilian real, Argentinian peso, Mexican peso and euro;

• our ability to achieve cost reductions that offset or exceed certain customer-mandated selling price reductions;

• a significant change in general economic conditions in any of the various countries in which we operate;

• labor disruptions at our facilities or at any of our significant customers or suppliers;

• the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis;

• the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our credit facility and the senior secured notes;

• customer acceptance of new products;

• capital availability or costs, including changes in interest rates or market perceptions;

• the failure to achieve the successful integration of any acquired company or business; and

• those items described in Part I, Item IA (“Risk Factors”) of the Company's 2013 Form 10-K.

In addition, the forward-looking statements contained herein represent our estimates only as of the date of this filing and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in market risk presented within Part II, Item 7A of the Company's 2013 Form 10-K.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of March 31, 2014, an evaluation was performed under the supervision and with the participation of the Company's management, including the principal executive officer (“PEO”) and principal financial officer (“PFO”), of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, the Company's management, including the PEO and PFO, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2014.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company's internal control over financial reporting during the three months ended March 31, 2014 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II–OTHER INFORMATION

Item 1. Legal Proceedings.

We are involved in certain legal actions and claims arising in the ordinary course of business. Although it is not possible to predict with certainty the outcome of these matters, we do not believe that any of the litigation in which we are currently engaged, either individually or in the aggregate, will have a material adverse effect on our business, consolidated financial position or results of operations. We are subject to a tax assessment in Brazil related to value added taxes on vehicle tracking and monitoring services for which the likelihood of loss is not probable although it may take years to resolve. We are also subject to litigation regarding patent infringement. See additional details of these matters in Note 8 to the condensed consolidated financial statements. We are also subject to the risk of exposure to product liability claims in the event that the failure of any of our products causes personal injury or death to users of our products and there can be no assurance that we will not experience any material product liability losses in the future. We maintain insurance against such product liability claims. In addition, if any of our products prove to be defective, we may be required to participate in a government-imposed or customer OEM-instituted recall involving such products.

Item 1A. Risk Factors.

There have been no material changes with respect to risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table presents information with respect to repurchases of Common Shares made by us during the three months ended March 31, 2014. These shares were delivered to us by employees as payment for the withholding taxes due upon vesting of restricted share awards:

						Maximum
					Total number of	number of shares
					shares purchased	that may yet be
	Total number				as part of publicly	purchased under
	of shares		Average price		announced plans	the plans or
Period	purchased		paid per share		or programs	programs
1/1/14-1/31/14		-	$	-	N/A	N/A
2/1/14-2/28/14		65,234		10.18	N/A	N/A
3/1/14-3/31/14		-		-	N/A	N/A
Total		65,234

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosure

None.

Item 5. Other Information.

None.

Item 6. Exhibits.

Reference is made to the separate, “Index to Exhibits,” filed herewith.

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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, thereunto duly authorized.

	STONERIDGE, INC.
Date:  May 8, 2014	/s/ John C. Corey
	John C. Corey President and Chief Executive Officer
	(Principal Executive Officer)
Date:  May 8, 2014	/s/ George E. Strickler
	George E. Strickler
	Executive Vice President, Chief Financial Officer and Treasurer
	(Principal Financial and Accounting Officer)

INDEX TO EXHIBITS

Exhibit
Number	Exhibit
10.1	Stoneridge, Inc. Amended and Restated Long-Term Incentive Plan – 2014 Performance Shares Agreement, filed herewith.
31.1	Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2	Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.1	Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.2	Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

29

EX-10.1

EXHIBIT 10.1

STONERIDGE, INC.

AMENDED AND RESTATED

LONG-TERM INCENTIVE PLAN

 20XX PERFORMANCE SHARES AGREEMENT

Stoneridge, Inc., an Ohio corporation (the “Company”), pursuant to the terms and conditions hereof, hereby grants to _____________ (“Grantee”) the right to receive, depending on continued service and Company performance, _______ Common Shares (the “Target Award”), without par value, of the Company (the “Performance Shares”), subject to the terms and conditions of this Agreement (the “Agreement”). As set forth below, the grant of the Performance Shares is comprised of three separate mutually exclusive parts, Target Award I, Target Award II and Target Award III.

1.          The Performance Shares are in all respects subject to the terms, conditions and provisions of this Agreement and the Company’s Amended and Restated Long-Term Incentive Plan (the “Plan”).

2.          The right to receive the Performance Shares will be forfeited to the Company if the Grantee’s employment with the Company is terminated prior to [Date], except in the case of (i) retirement, (ii) death, (iii) Permanent Disability, (iv) Change in Control or (v) termination without cause, each as provided below.

If the employment of the Grantee is not terminated prior to [Date], the Performance Shares shall, subject to satisfaction of the performance criteria applicable to Target Awards II and III, be earned on [Date].

Special Provisions Applicable to Retirement.

Subject to the conditions below, in the case of retirement the Performance Shares granted with respect to:

(1) Target Award I shall be earned on the date of retirement and a certificate or certificates representing Target Award I Performance Shares shall promptly be delivered to the Grantee, but in no event shall be delivered later than the 15^th day of the third month following the year in which Performance Shares were earned;

(2) Target Award II shall be earned upon satisfaction of the performance criteria applicable to Target Award II, and a certificate or certificates representing Target Award II Performance Shares shall be delivered to the Grantee as promptly as practical after completion of the Peer Group Performance Period but in no event later than [Date]; and

(3) Target Award III shall be earned upon satisfaction of the performance criteria applicable to the Target Award III, and a certificate or certificates representing Target Award III Performance Shares shall be delivered to the Grantee as promptly as practical after completion of the EPS Performance Period but in no event later than [Date].

Only a Grantee who (i) is 63 or older on the date of retirement, (ii) has provided written notice to the Compensation Committee of the Board of Directors (the “Committee”) of the intent to retire at least one year prior to the retirement date, and (iii) has executed prior to retirement a customary one year non-competition agreement shall be permitted to have his or her Performance Shares earned upon retirement.

If the employment of the Grantee is not terminated prior to [Date], (the “Performance Period”) the Performance Shares shall be earned in the amounts set forth below on [Date]:

Target Award I          Time-Based Earning

Number of Shares That May be Earned

Target Award II         Company Performance Versus Peer Group Performance and Time-Based Earning

Depending on the achievement of the Company’s total shareholder return (“TSR”) (as defined below) as compared to the Peer Group’s TSR for the Company’s fiscal years 20XX, 20YY, and 20ZZ (the “Peer Group Performance Period”):

Quartile	Percentile		Shares Earned
1st		≥75% -100%		______
2nd		≥50% - <75%		______
3rd		≥25% -< 50%		______
4th		<25%		0

If the Company’s TSR for the Peer Group Performance Period is between the upper and lower percentiles within a quartile, per the above table, the number of shares earned shall be determined by interpolation between the corresponding percentiles as follows: the difference between the actual percentile performance and the lower percentile in the applicable quartile shall be divided by 0.25, the resulting fraction shall be multiplied by 50 and the resulting product, rounded to the nearest whole share, shall be added to the corresponding number of shares in the above table for the immediately lower quartile, with the sum being the total shares earned. If the Company’s TSR for the Peer Group Performance Period is exactly 50%, 75% or 100% of the Peer Group Performance then the number of shares earned shall be the maximum amount for the respective quartile in the above table, as applicable.

The Peer Group companies are: Accuride, American Axle & Manufacturing, Commercial Vehicle Group, CTS, EnPro Industries, Esterline Technologies, Gentex, Graco, Littelfuse, Meritor, Inc., Modine Manufacturing, Standard Motor Products, Superior Industries, and Titan International. The Peer Group shall be subject to modification at the discretion of the Committee from time to time, when events warrant. The performance of the Peer Group companies shall not be weighted based on the size of the respective company.

Total shareholder return for both the Company and the Peer Group companies shall be calculated by dividing: (i) the sum of (A) the cumulative amount of dividends for the Peer Group Performance Period, and (B) the difference between the respective company’s share price at the end of and the beginning of the Peer Group Performance Period; by (ii) the shares price at the beginning of the Peer Group Performance Period.

2

Target Award III          EPS Performance and Time-Based Earning

Depending on the Company’s earnings per share (“EPS”) (as defined below) for the Company’s annual fiscal years of 20XX, 20YY, and 20ZZ (the “EPS Performance Period”) and subject to the 20YY and 20ZZ Addenda to this Agreement:

20XX  EPS	Shares Earned		20YY EPS per Addendum		Shares Earned		20ZZ EPS per Addendum		Shares Earned
≥  _____		______		TBD		______		TBD		______
≥ _____*		______		TBD*		______		TBD*		______
≥  _____		______		TBD		______		TBD		______
<  _____		0		TBD		0		TBD		0

TBD – To be provided in the 20YY and 20ZZ Addenda

*Target threshold

If the Company’s EPS for any fiscal year is between two EPS data points, per the above table for that fiscal year, the number of shares earned shall be determined by interpolation between those data points as follows: the difference between the actual EPS and the lower data point shall be divided by the difference between the two data points, the resulting fraction shall be multiplied by the difference between the two corresponding numbers of shares in the above table and the resulting product, rounded to the nearest whole share, shall be added to the corresponding number of shares for the lower data point in the above table, with the sum being the total shares earned.

The Company’s EPS for any fiscal year in the EPS Performance Period shall mean the Company’s aggregate fully diluted earnings per Common Share for that fiscal year calculated in accordance with generally accepted accounting principles, before extraordinary items, cumulative effects of changes in accounting principles, adjustments for goodwill impairments and the tax effect thereof, if any, as set forth on the audited consolidated financial statements of the Company for that fiscal year; provided, however, the EPS targets for any year in the Performance Period may, at the Committee discretion, be adjusted as a result of any significant, unusual or one-time expense or gain items that the Company could not have reasonably been expected to foresee.

The 20YY and 20ZZ Addenda to this Agreement shall be appended to this Agreement and incorporated herein by reference, effective upon their respective adoption by the Committee.

3.          If earned, the Performance Shares for the respective Target Award will be issued in the name of the Grantee. The Company’s transfer agent and/or share transfer records will show the Grantee as the owner of record of the Performance Shares as of the date the Performance Shares are earned.  The certificate or certificates representing the Performance Shares earned may, at the Company's discretion, be in uncertificated (electronic or book entry) form.

3

4.          Notwithstanding the foregoing, in addition to earning the Performance Shares as set forth above, the Performance Shares shall be earned upon the occurrence of an event and in the amounts as described below.

Target Award I shall be earned and not be forfeited in the event of:

(a)          the Grantee’s death or Permanent Disability in proportion to the number of months, including any partial month, elapsed in the Performance Period divided by 36;

(b)          a Change in Control or Potential Change in Control of the Company; or

(c)          the termination “without cause” of the Grantee’s employment by the Company; provided, however only in proportion to the number of months, including any partial month, elapsed in the Performance Period divided by 36.

A certificate or certificates representing the earned Performance Shares granted under Award I shall be delivered to the Grantee or the Grantee’s estate after the occurrence of an event described above as soon as practical, but in no event shall be delivered later than the 15^th day of the third month following the year in which Performance Shares were earned.

Target Award II shall be earned and not be forfeited in the event of:

(a)          the Grantee’s death or Permanent Disability in proportion to the number of months, including any partial month, elapsed in the Peer Group Performance Period divided by 36;

(b)          a Change in Control or Potential Change in Control of the Company; or

(c)          the termination “without cause” of the Grantee’s employment by the Company; provided, however only in proportion to the number of months, including any partial month, elapsed in the Peer Group Performance Period divided by 36.

In the event of the Grantee’s death, Permanent Disability or termination without cause the shares granted in Target Award II shall be earned in amounts (and subject to the 36 month pro rata earning provisions for death, Permanent Disability and termination without cause) in accordance with the Company’s TSR during the Peer Group Performance Period as determined under the metrics of Target Award II above. A certificate or certificates representing the earned Performance Shares under Target Award II shall be delivered to the Grantee or the Grantee’s estate as promptly as practical after completion of the Peer Group but no in event later than [Date]. In the event of a Change in Control or Potential Change in Control of the Company, Target Award II shall be earned in amounts which assume the Company’s TSR during the Peer Group Performance Period is equal to the 50^th percentile of the Peer Group companies’ performance in that period. A certificate or certificates representing the earned Performance Shares under Target Award II shall be delivered to the Grantee as promptly as practical after the Change in Control or Potential Change in Control, but in no event shall be delivered later than the 15^th day of the third month following the year in which Performance Shares were earned.

4

Target Award III shall be earned and not be forfeited in the event of:

(a)          the Grantee’s death or Permanent Disability in proportion to the number of months, including any partial month, elapsed in the EPS Performance Period divided by 36;

(b)          a Change in Control of the Company; or

(c)          the termination “without cause” of the Grantee’s employment by the Company; provided, however only in proportion to the number of months, including any partial month, elapsed in the EPS Performance Period divided by 36.

In the event of the Grantee’s death, Permanent Disability or termination without cause the Performance Shares granted under Target Award III shall be earned in amounts (and subject to the 36 month pro rata earning provisions for death, Permanent Disability and termination without cause) in accordance with the Company’s actual EPS for each of 20XX, 20YY, and 20ZZ target thresholds during the EPS Performance Period for Target Award III. A certificate or certificates representing the earned Performance Shares under Target Award III shall be delivered to the Grantee or the Grantee’s estate as promptly as practical after completion of the EPS Performance Period, but no in event later than [Date]. In the event of a Change in Control of the Company, Target Award III shares shall be earned in amounts which assume the Company’s EPS satisfied the respective 20XX, 20YY and 20ZZ at the specified target thresholds. A certificate or certificates representing the earned Performance Shares under Target Award III shall be delivered to the Grantee as promptly as practical after the Change in Control or Potential Change in Control, but in no event shall be delivered later than the 15^th day of the third month following the year in which Performance Shares were earned.

Termination shall be deemed to be “without cause” unless the Board of Directors of the Company, or its designee, in good faith determines that termination is because of any one or more of the following, in which case such termination shall be deemed to be for “cause”:

The Grantee’s:

(a) fraud;

(b) misappropriation of funds from the Company;

(c) commission of a felony or of an act or series of acts which result in material injury to the business reputation of the Company;

(d) commission of a crime or act or series of acts involving moral turpitude;

(e) commission of an act or series of repeated acts of dishonesty that are materially inimical to the best interests of the Company;

5

(f) willful and repeated failure to perform his duties, which failure has not been cured within fifteen (15) days after the Company gives notice thereof to the Grantee;

(g) material breach of any material provision of an employment agreement, if any, which breach has not been cured in all substantial respects within ten (10) days after the Company gives notice thereof to the Grantee; or

(h) failure to carry out the reasonable directions or instructions of the Grantee’s superiors, provided the directions or instructions are consistent with the duties of the Grantee’s office, which failure has not been cured in all substantial respects within ten (10) days after the Company gives notice thereof to the Grantee.

Provided, however, the Company’s obligation to provide notice and an opportunity to cure, pursuant to subsections (f)-(h) above, shall only apply to the Grantee’s first breach, first failure to perform or first failure to follow directions, as the case may be, of the nature giving rise to the right of the Company to provide notice thereof. In addition, the Grantee may terminate his employment with the Company, and such termination shall be deemed a termination by the Company “without cause” if:

(a) the Company reduces the Grantee’s title, responsibilities, power or authority in comparison with his title, responsibilities, power or authority on the date hereof;

(b) the Company assigns the Grantee duties which are inconsistent with the duties assigned to the Grantee on the date hereof and which duties the Company persists in assigning to the Grantee despite the prior written objection of the Grantee; or

(c) the Company reduces the Grantee’s annual base compensation (unless such decrease is proportionate with a decrease in the base compensation of the officers of the Company as a group), or materially reduces his group health, life, disability or other insurance programs, his pension, retirement or profit-sharing benefits or any benefits provided by the Company, or excludes him from any plan, program or arrangement, including but not limited to bonus or incentive plans.

5.          On any change in the number or kind of outstanding common shares of the Company by reason of a recapitalization, merger, consolidation, reorganization, separation, liquidation, share split, share dividend, combination of shares or any other change in the corporate structure or Common Shares of the Company, the Company, by action of the Committee, is empowered to make such adjustment, if any, in the number and kind of Performance Shares subject to this Agreement as it considers appropriate for the protection of the Company and of the Grantee.

6

6.          No later than the date as of which an amount first becomes includable in the gross income of the Grantee for federal income tax purposes with respect to the Performance Shares granted hereunder, the Grantee shall pay to the Company, or make arrangements satisfactory to the Committee regarding the payment of, any federal, state or local taxes of any kind required by law to be withheld with respect to that amount. Unless otherwise determined by the Committee, minimum statutory withholding obligations may be settled with previously owned Common Shares or Performance Shares that have been earned. The making of that payment or those arrangements is a condition to the obligations of the Company under the Plan, and the Company and its subsidiaries and affiliates may, to the extent permitted by law, deduct any taxes from any payment of any kind otherwise payable to the Grantee.

7.          Nothing in this Agreement shall affect in any manner any conflicting or other provision of any other agreement between the Grantee and the Company. Nothing contained in this Agreement shall limit whatever right the Company might otherwise have to terminate the employment of the Grantee.

8.          The laws of the State of Ohio govern this Agreement, the Plan and the Performance Shares granted hereby.

IN WITNESS WHEREOF, the Company has caused its corporate name to be subscribed by its duly authorized officer as of the ___ day of _________ 20XX.

	STONERIDGE, INC.
	By
		John C. Corey
The foregoing is hereby accepted.

7

EX-31.1

 EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES–OXLEY ACT OF 2002

I, John C. Corey certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of Stoneridge, Inc. (the “Company”);

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

(4) The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the Company and we have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d) Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting;

(5) The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

/s/ John C. Corey

John C. Corey, President and Chief Executive Officer

May 8, 2014

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES–OXLEY ACT OF 2002

I, George E. Strickler certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of Stoneridge, Inc. (the “Company”);

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

(4) The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the Company and we have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d) Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting;

(5) The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

/s/ George E. Strickler

George E. Strickler, Executive Vice President, Chief Financial Officer and Treasurer

May 8, 2014

EX-32.1

  EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, John C. Corey, President and Chief Executive Officer of Stoneridge, Inc. (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)   the Quarterly Report on Form 10-Q of the Company for the three months ended March 31, 2014 (“the Report”) which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2)   the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John C. Corey

John C. Corey, President and Chief Executive Officer

May 8, 2014

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, George E. Strickler, Executive Vice President, Chief Financial Officer and Treasurer of Stoneridge, Inc. (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)   the Quarterly Report on Form 10-Q of the Company for the three months ended March 31, 2014 (“the Report”) which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2)   the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ George E. Strickler

George E. Strickler, Executive Vice President, Chief Financial Officer and Treasurer

May 8, 2014

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Commitments and Contingencies (Narrative) (Details) In Thousands, unless otherwise specified	3 Months Ended					3 Months Ended		12 Months Ended
	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Mar. 31, 2014 Accrued Expenses and Other Current Liabilities [Member] USD ($)	Dec. 31, 2013 Accrued Expenses and Other Current Liabilities [Member] USD ($)	Mar. 31, 2014 Letter of Credit [Member] USD ($)	Mar. 31, 2014 PST Eletronicaltda [Member] USD ($)	Mar. 31, 2014 PST Eletronicaltda [Member] BRL	Dec. 31, 2013 PST Eletronicaltda [Member] USD ($)	Mar. 31, 2014 PST Eletronicaltda [Member] Value Added Tax [Member] USD ($)	Mar. 31, 2014 PST Eletronicaltda [Member] Value Added Tax [Member] BRL	Mar. 31, 2014 PST Eletronicaltda [Member] Interest On Tax [Member] USD ($)	Mar. 31, 2014 PST Eletronicaltda [Member] Interest On Tax [Member] BRL	Mar. 31, 2014 PST Eletronicaltda [Member] Penalties On Tax [Member] USD ($)	Mar. 31, 2014 PST Eletronicaltda [Member] Penalties On Tax [Member] BRL	Mar. 31, 2014 Minda Stoneridge Instruments Ltd [Member]	Dec. 31, 2013 Minda Stoneridge Instruments Ltd [Member]
Short-term Debt [Line Items]
Environmental remediation accrued undiscounted liability	$ 944	$ 944	$ 683	$ 683
Line of credit					2,000
Loss contingency, estimate of possible loss	19,000					13,633		11,469
Equity method investment, ownership percentage															49.00%	49.00%
Loss contingencies aggregate tax assessment not accrued						40,900	92,500		5,800	13,200	5,100	11,400	30,000	67,900
Percentage of state value added tax	25.00%
Percentage ownership in consolidated subsidiary	74.00%					74.00%	74.00%	74.00%
Product warranty and recall accrual	$ 1,133	$ 1,019

XML

Investments (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Schedule of Equity Method Investments [Line Items]
Percentage ownership in consolidated subsidiary	74.00%
Income (loss) from equity method investments	$ 238	$ 201
Noncontrolling interest	39,907		39,540
Net income (loss) attributable to noncontrolling interests	(978)	160
Comprehensive income related to noncontrolling interest	(978)	160
PST Eletronicaltda [Member]
Schedule of Equity Method Investments [Line Items]
Percentage ownership in consolidated subsidiary	74.00%		74.00%
Noncontrolling interest	39,907	44,677
Noncontroling interest decrease	367	601
Foreign currency translation adjustments	(1,345)	(647)
Dividend from noncontrolling interest		211
Net income (loss) attributable to noncontrolling interests	978	(165)
Comprehensive income related to noncontrolling interest	(367)	(812)
Minda Stoneridge Instruments Ltd [Member]
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	49.00%		49.00%
Equity method investments	6,417		5,981
Income (loss) from equity method investments	$ 238	$ 201

XML

Share-Based Compensation (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 1,163	$ 1,387
Long Term Cash Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 0	$ 156

XML

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies [Abstract]

Schedule of Product Warranty Liability

The following provides a reconciliation of changes in product warranty and recall liability:

Three months ended March 31		2014		2013
Product warranty and recall at beginning of period	$	6,481	$	6,107
Accruals for products shipped during period		1,190		1,079
Aggregate changes in pre-existing liabilities due to claim developments		264		529
Settlements made during the period (in cash or in kind)		(540)		(1,498)
Product warranty and recall at end of period	$	7,395	$	6,217

XML

Income Taxes (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Taxes [Abstract]
Provision for income taxes	$ 430	$ 1,019
Effective income tax rate	46.70%	19.20%

XML

Net Income Per Share (Weighted Average Shares Oustanding Used in Calculating Basic and Diluted Net Income Per Share) (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net Income Per Share [Abstract]
Basic weighted-average common shares outstanding	26,854,017	26,601,282
Effect of dilutive shares	554,764	793,759
Diluted weighted-average common shares outstanding	27,408,781	27,395,041

XML

Financial Instruments and Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Financial Instruments and Fair Value Measurements [Abstract]

Financial Instruments and Fair Value Measurements

(3) Financial Instruments and Fair Value Measurements

Financial Instruments

A financial instrument is cash or a contract that imposes an obligation to deliver, or conveys a right to receive cash or another financial instrument. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of fair value because of the short maturity of these instruments. The estimated fair value of the Company's senior secured notes with a face value of $175,000 (fixed rate debt) at March 31, 2014 and December 31, 2013 was $188,800 and $190,100, respectively, and was determined using market quotes classified as Level 2 input within the fair value hierarchy.

Derivative Instruments and Hedging Activities

On March 31, 2014, the Company had open foreign currency forward contracts, fixed price commodity contracts and an interest rate swap. These contracts are used solely for hedging and not for speculative purposes. Management believes that its use of these instruments to reduce risk is in the Company's best interest.  The counterparties to these financial instruments are financial institutions with investment grade credit ratings.

Foreign Currency Exchange Rate Risk

The Company conducts business internationally and therefore is exposed to foreign currency exchange rate risk. The Company uses derivative financial instruments as cash flow and fair value hedges to mitigate its exposure to fluctuations in foreign currency exchange rates by reducing the effect of such fluctuations on foreign currency denominated intercompany transactions and other foreign currency exposures. The currencies hedged by the Company during 2014 and 2013 include the euro and Mexican peso.

In certain instances, the foreign currency forward contracts do not qualify for hedge accounting or are not designated as hedges, and therefore are marked-to-market with gains and losses recognized in the Company's condensed consolidated statement of operations as a component of other expense, net.

The Company's foreign currency forward contracts offset a portion of the gains and losses on the underlying foreign currency denominated transactions as follows:

Euro-denominated Foreign Currency Forward Contract

As of March 31, 2014 and December 31, 2013, the Company held a foreign currency forward contract with underlying notional amounts of $13,526 and $13,335, respectively, to reduce the exposure related to the Company's euro-denominated intercompany loans. This contract expires in June 2014. The euro-denominated foreign currency forward contract was not designated as a hedging instrument. For the three months ended March 31, 2014 and 2013, the Company recognized a loss of $61and $363, respectively, in the condensed consolidated statement of operations as a component of other expense, net related to the euro-denominated contract.

Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedge

The Company holds Mexican peso-denominated foreign currency forward contracts with underlying notional amounts at March 31, 2014 totaling $33,750 which expire ratably on a monthly basis from April through December 2014, compared to $45,000 at December 31, 2013. 

These contracts were executed to hedge forecasted transactions and are accounted for as cash flow hedges.  As such, the effective portion of the unrealized gain or loss is deferred and reported in the Company’s condensed consolidated balance sheets as a component of accumulated other comprehensive loss.  The cash flow hedges are highly effective and the Company expects them to remain highly effective in future periods.  The effectiveness of the transactions has been and will be measured on an ongoing basis using regression analysis and forecasted future Mexican peso purchases.

Commodity Price Risk - Cash Flow Hedge

To mitigate the risk of future price volatility and, consequently, fluctuations in gross margins, the Company entered into fixed price commodity contracts with a financial institution to fix the cost of a portion of the Company’s copper purchases as copper is a significant raw material. 

The Company has fixed price commodity contracts at March 31, 2014 with an aggregate notional amount of1,146 pounds, which expire on a monthly basis over the period from April through December 2014, compared to an aggregate notional amount of 1,582 pounds at December 31, 2013. 

All of these contracts represent a portion of the Company’s forecasted copper purchases.  These contracts were executed to hedge a portion of forecasted transactions and the contracts are accounted for as cash flow hedges.  The unrealized gain or loss for the effective portion of the hedges is deferred and reported in the Company’s consolidated balance sheets as a component of accumulated other comprehensive loss while the ineffective portion, if any, is reported in the condensed consolidated statements of operations.  The effectiveness of the transactions is measured on an ongoing basis using regression analysis and forecasted future copper purchases.  Based upon the results of the regression analysis, the Company has concluded that these cash flow hedges are highly effective.

Interest Rate Risk - Fair Value Hedge

The Company has a fixed-to-floating interest rate swap agreement (the “Swap”) with a notional amount of $45,000 to hedge its exposure to fair value fluctuations on a portion of its senior secured notes. The Swap was designated as a fair value hedge of the fixed interest rate obligation under the Company's $175,0009.5% senior secured notes due October 15, 2017. The critical terms of the Swap are aligned with the terms of the senior secured notes, including maturity of October 15, 2017, resulting in no hedge ineffectiveness. The unrealized gain or loss for the effective portion of the hedge is deferred and reported in the Company's condensed consolidated balance sheets as an asset or liability as applicable, with the offset to the carrying value of the senior secured notes.

Under the Swap, the Company pays a variable interest rate equal to the six-month London Interbank Offered Rate (“LIBOR”) plus 7.2% and it receives a fixed interest rate of 9.5%. The Swap requires semi-annual settlements on April 15 and October 15. The difference between amounts to be received and paid under the Swap is recognized as a component of interest expense, net on the condensed consolidated statements of operations. 

The Swap reduced interest expense by $225 and $231 for the three months ended March 31, 2014 and 2013, respectively.

The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets are as follows: 

					Prepaid expenses and other
					current assets / Other				Accrued expenses and other
	Notional amounts (A)				long-term assets				current liabilities
	March 31,		December 31,		March 31,		December 31,			March 31,		December 31,
	2014		2013		2014		2013			2014		2013
Derivatives designated as hedging instruments:
Cash Flow Hedges:
Forward currency contracts		$ 33,750		$ 45,000		$ 36		$-			$-		$ 263
Fixed price commodity contracts		1,146		1,582		$-		$ 152			$ 290		$-
Fair Value Hedge:
Interest rate swap contract		$ 45,000		$ 45,000		$ 937		$ 793			$-		$-
Derivatives not designated as hedging instruments:
Forward currency contracts		$ 13,526		$ 13,335		$-		$-			$ 16		$ 18

(A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds.

Amounts recorded for the cash flow hedges in other comprehensive income and in net income for the three months ended March 31 are as follows: 

	Gain (loss) recorded in other comprehensive income				Gain (loss) reclassified from other comprehensive income into net income
	2014		2013		2014		2013
Derivatives designated as cash flow hedges:
Forward currency contracts	$	118	$	1,741	$	(181)	$	675
Fixed price commodity contracts		(472)		(745)		(30)		62
Total derivatives designated as cash flow hedges	$	(354)	$	996	$	(211)	$	737

Gains and losses reclassified from other comprehensive income into net income were recognized in cost of goods sold in the Company's condensed consolidated statements of operations.

The net deferred losses of $254 on the cash flow hedge derivatives will be reclassified from other comprehensive income to the condensed consolidated statements of operations through December 2014.  The Company has measured the ineffectiveness of the forward currency and commodity contracts and any amounts recognized in the condensed consolidated financial statements were immaterial for the three months ended March 31, 2014 and 2013.

Fair Value Measurements

The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of the inputs used.

	March 31,								December 31,
	2014								2013
	Fair values estimated using
			Level 1		Level 2		Level 3
	Fair value		inputs (A)		inputs (B)		inputs (C)		Fair value
Financial assets carried at fair value:
Interest rate swap contract	$	937	$	-	$	937	$	-	$	793
Forward currency contracts		36		-		36		-		-
Fixed price commodity contracts		-		-		-				152
Total financial assets carried at fair value	$	973	$	-	$	973	$	-	$	945
Financial liabilities carried at fair value:
Forward currency contracts	$	16	$	-	$	16	$	-	$	281
Fixed price commodity contracts		290		-		290		-		-
Total financial liabilities carried at fair value	$	306	$	-	$	306	$	-	$	281

(A)	Fair values estimated using Level 1 inputs, which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company did not have any fair value estimates using Level 1 inputs at March 31, 2014 or December 31, 2013.
(B)	Fair values estimated using Level 2 inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency, fixed price commodity and interest rate swap contracts, inputs include foreign currency exchange rates, commodity indexes and the six-month forward LIBOR.
(C)	Fair values estimated using Level 3 inputs consist of significant unobservable inputs. The Company did not have any fair value estimates using Level 3 inputs at March 31, 2014 or December 31, 2013.

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Segment Reporting (Narrative) (Details)	3 Months Ended
	Mar. 31, 2014 segment
Segment Reporting [Abstract]
Number of reportable segments	4

XML

Financial Instruments and Fair Value Measurements (Narrative) (Details) (USD $)		3 Months Ended												3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2014 Euro-Denominated Foreign Currency Forward Contracts [Member]	Mar. 31, 2013 Euro-Denominated Foreign Currency Forward Contracts [Member]	Mar. 31, 2014 Interest Rate Swap [Member]	Mar. 31, 2013 Interest Rate Swap [Member]	Mar. 31, 2014 Senior Notes [Member]	Dec. 31, 2013 Senior Notes [Member]	Mar. 31, 2014 Designated as Hedging Instrument [Member] Cash Flow Hedging [Member] Forward Currency Contracts [Member]		Dec. 31, 2013 Designated as Hedging Instrument [Member] Cash Flow Hedging [Member] Forward Currency Contracts [Member]		Mar. 31, 2014 Designated as Hedging Instrument [Member] Cash Flow Hedging [Member] Mexican Peso-Denominated Foreign Currency Forward Contracts [Member]	Dec. 31, 2013 Designated as Hedging Instrument [Member] Cash Flow Hedging [Member] Mexican Peso-Denominated Foreign Currency Forward Contracts [Member]	Mar. 31, 2014 Designated as Hedging Instrument [Member] Cash Flow Hedging [Member] Copper Commodity [Member] lb		Dec. 31, 2013 Designated as Hedging Instrument [Member] Cash Flow Hedging [Member] Copper Commodity [Member] lb		Mar. 31, 2014 Designated as Hedging Instrument [Member] Fair Value Hedging [Member] Interest Rate Swap [Member]		Dec. 31, 2013 Designated as Hedging Instrument [Member] Fair Value Hedging [Member] Interest Rate Swap [Member]		Mar. 31, 2014 Not Designated as Hedging Instrument [Member] Forward Currency Contracts [Member]		Dec. 31, 2013 Not Designated as Hedging Instrument [Member] Forward Currency Contracts [Member]		Mar. 31, 2014 Not Designated as Hedging Instrument [Member] Euro-Denominated Foreign Currency Forward Contracts [Member]	Dec. 31, 2013 Not Designated as Hedging Instrument [Member] Euro-Denominated Foreign Currency Forward Contracts [Member]	Mar. 31, 2014 London Interbank Offered Rate (LIBOR) [Member] Interest Rate Swap [Member]	Mar. 31, 2014 People's Bank of China One-Year Lending Rate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Face value of senior secured notes						$ 175,000,000	$ 175,000,000
Estimated fair value of senior secured notes						188,800,000	190,100,000
Notional amounts								33,750,000	[1]	45,000,000	[1]	33,750,000	45,000,000					45,000,000	[1]	45,000,000	[1]	13,526,000	[1]	13,335,000	[1]	13,526,000	13,335,000
Gain (loss) on derivative instruments held for trading purposes, net		(61,000)	(363,000)
Fixed price commodity contracts (in pounds)														1,146,000	[1]	1,582,000	[1]
Discription of variable rate basis of derivative				the Company pays a variable interest rate equal to the six-month London Interbank Offered Rate ("LIBOR") plus 7.2%
Variable interest rate in addition to LIBOR																												7.20%
Fixed interest rate						9.50%
Reduced interest expense as a result of swap				(225,000)	(231,000)
Debt interest rate				9.50%																									7.39%
Amount from cash flow hedge derivatives to be reclassified	$ 254,000

[1] Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds.

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Inventories (Schedule of Inventories) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventories [Abstract]
Raw materials	$ 80,888	$ 71,631
Work-in-progress	17,683	16,168
Finished goods	31,073	26,259
Total inventories, net	$ 129,644	$ 114,058

XML

Segment Reporting (Schedule of Segment Reporting Information, by Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013		Dec. 31, 2013
Net Sales:
Total net sales	$ 236,389		$ 235,710
Income (Loss) Before Income Taxes:
Total income (loss) before income taxes	920		5,302
Depreciation and Amortization:
Total depreciation and amortization	7,941	[1]	8,905	[1]
Interest Expense, net:
Interest expense, net	4,940		4,574
Capital Expenditures:
Capital expenditures	4,586		5,818
Total Assets:
Total assets	612,956				588,322
Intersegment Eliminations [Member]
Net Sales:
Total net sales	(14,384)		(13,265)
Total Assets:
Total assets	(270,934)				(266,756)
Electronics [Member]
Net Sales:
Total net sales	61,848		55,386
Electronics [Member] | Operating Segments [Member]
Net Sales:
Total net sales	50,091		44,520
Income (Loss) Before Income Taxes:
Total income (loss) before income taxes	3,619		3,782
Depreciation and Amortization:
Total depreciation and amortization	1,101		1,279
Interest Expense, net:
Interest expense, net	199		187
Capital Expenditures:
Capital expenditures	647		469
Total Assets:
Total assets	110,638				105,352
Electronics [Member] | Intersegment Eliminations [Member]
Net Sales:
Total net sales	11,757		10,866
Wiring [Member]
Net Sales:
Total net sales	76,934		78,451
Wiring [Member] | Operating Segments [Member]
Net Sales:
Total net sales	75,059		76,848
Income (Loss) Before Income Taxes:
Total income (loss) before income taxes	(618)		(427)
Depreciation and Amortization:
Total depreciation and amortization	1,255		1,211
Interest Expense, net:
Interest expense, net	11		124
Capital Expenditures:
Capital expenditures	479		516
Total Assets:
Total assets	113,048				98,180
Wiring [Member] | Intersegment Eliminations [Member]
Net Sales:
Total net sales	1,875		1,603
Control Devices [Member]
Net Sales:
Total net sales	78,075		72,709
Control Devices [Member] | Operating Segments [Member]
Net Sales:
Total net sales	77,323		71,913
Income (Loss) Before Income Taxes:
Total income (loss) before income taxes	6,835		6,267
Depreciation and Amortization:
Total depreciation and amortization	2,371		2,535
Interest Expense, net:
Interest expense, net	61		47
Capital Expenditures:
Capital expenditures	1,734		3,240
Total Assets:
Total assets	117,551				105,730
Control Devices [Member] | Intersegment Eliminations [Member]
Net Sales:
Total net sales	752		796
Corporate [Member]
Interest Expense, net:
Interest expense, net	4,001		3,939
Total interest expense, net	(4,001)		(3,939)
Capital Expenditures:
Capital expenditures	59		127
Total Assets:
Total assets	294,583	[2]			308,167	[2]
Corporate [Member] | Operating Segments [Member]
Income (Loss) Before Income Taxes:
Total income (loss) before income taxes	697		(864)
Depreciation and Amortization:
Total depreciation and amortization	45		48
Pst [Member]
Net Sales:
Total net sales	33,916		42,429
Pst [Member] | Operating Segments [Member]
Net Sales:
Total net sales	33,916		42,429
Income (Loss) Before Income Taxes:
Total income (loss) before income taxes	(5,612)		483
Depreciation and Amortization:
Total depreciation and amortization	3,169		3,832
Interest Expense, net:
Interest expense, net	668		277
Capital Expenditures:
Capital expenditures	1,667		1,466
Total Assets:
Total assets	248,070				237,649
Pst [Member] | Intersegment Eliminations [Member]
Net Sales:
Total net sales

[1] These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets.

[2] Assets located at Corporate consist primarily of cash, intercompany loan receivables, equity investments and investments in subsidiaries.

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Financial Instruments and Fair Value Measurements (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014 lb		Dec. 31, 2013 lb
Forward Currency Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional amounts	$ 13,526	[1]	$ 13,335	[1]
Forward Currency Contracts [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional amounts	33,750	[1]	45,000	[1]
Copper Commodity [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Fixed price commodity contracts (in pounds)	1,146,000	[1]	1,582,000	[1]
Interest Rate Swap [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional amounts	45,000	[1]	45,000	[1]
Other Assets [Member] | Forward Currency Contracts [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Cash flow hedges , other derivatives	36
Other Assets [Member] | Copper Commodity [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Cash flow hedges , other derivatives			152
Other Assets [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Fair value hedge, other derivatives	937		793
Other Liabilities [Member] | Forward Currency Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Fair value of other derivatives	(16)		(18)
Other Liabilities [Member] | Forward Currency Contracts [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Cash flow hedges , other derivatives			(263)
Other Liabilities [Member] | Copper Commodity [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Cash flow hedges , other derivatives	$ (290)

[1] Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds.

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Financial Instruments and Fair Value Measurements (Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)) (Details) (Designated as Hedging Instrument [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Derivatives designated as cash flow hedges:
Gain (loss) recorded in other comprehensive income (loss)	$ (354)	$ 996
Gain (loss) reclassified from other comprehensive income (loss) into net income	(211)	737
Forward Currency Contracts [Member]
Derivatives designated as cash flow hedges:
Gain (loss) recorded in other comprehensive income (loss)	118	1,741
Gain (loss) reclassified from other comprehensive income (loss) into net income	(181)	675
Commodity Contract [Member]
Derivatives designated as cash flow hedges:
Gain (loss) recorded in other comprehensive income (loss)	(472)	(745)
Gain (loss) reclassified from other comprehensive income (loss) into net income	$ (30)	$ 62

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Inventories

3 Months Ended

Mar. 31, 2014

Inventories [Abstract]

Inventories

(2) Inventories

Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or market. The Company evaluates and adjusts as necessary its excess and obsolescence reserve at a minimum on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period.

Inventory cost includes material, labor and overhead. Inventories consisted of the following:

		March 31,		December 31,
		2014		2013
Raw materials	$	80,888	$	71,631
Work-in-progress		17,683		16,168
Finished goods		31,073		26,259
Total inventories, net	$	129,644	$	114,058

Inventory valued using the FIFO method was $73,523 and $67,750 at March 31, 2014 and December 31, 2013, respectively. Inventory valued using the average cost method was $56,121 and $46,308 at March 31, 2014 and December 31, 2013, respectively.

.

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Financial Instruments and Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Financial assets carried at fair value:
Interest rate swap contract	$ 937		$ 793
Forward currency contracts	36
Fixed price commodity contracts			152
Total financial assets carried at fair value	973		945
Financial liabilities carried at fair value:
Forward currency contracts	16		281
Fixed price commodity contracts	290
Total financial liabilities carried at fair value	306		281
Fair Value, Inputs, Level 1 [Member]
Financial assets carried at fair value:
Interest rate swap contract		[1]
Forward currency contracts		[1]
Fixed price commodity contracts		[1]
Total financial assets carried at fair value		[1]
Financial liabilities carried at fair value:
Forward currency contracts		[1]
Fixed price commodity contracts		[1]
Total financial liabilities carried at fair value		[1]
Fair Value, Inputs, Level 2 [Member]
Financial assets carried at fair value:
Interest rate swap contract	937	[2]
Forward currency contracts	36	[2]
Fixed price commodity contracts		[2]
Total financial assets carried at fair value	973	[2]
Financial liabilities carried at fair value:
Forward currency contracts	16	[2]
Fixed price commodity contracts	290	[2]
Total financial liabilities carried at fair value	306	[2]
Fair Value, Inputs, Level 3 [Member]
Financial assets carried at fair value:
Interest rate swap contract		[3]
Forward currency contracts		[3]
Fixed price commodity contracts		[3]
Total financial assets carried at fair value		[3]
Financial liabilities carried at fair value:
Forward currency contracts		[3]
Fixed price commodity contracts		[3]
Total financial liabilities carried at fair value		[3]

[1] Fair values estimated using Level 1 inputs, which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company did not have any fair value estimates using Level 1 inputs at March 31, 2014 or December 31, 2013.

[2] Fair values estimated using Level 2 inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency, fixed price commodity and interest rate swap contracts, inputs include foreign currency exchange rates, commodity indexes and the six-month forward LIBOR.

[3] Fair values estimated using Level 3 inputs consist of significant unobservable inputs. The Company did not have any fair value estimates using Level 3 inputs at March 31, 2014 or December 31, 2013.

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Commitments and Contingencies (Reconcilation of Changes in Product Warranty and Recall Liability) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Commitments and Contingencies [Abstract]
Product warranty and recall at beginning of period	$ 6,481	$ 6,107
Accruals for products shipped during period	1,190	1,079
Aggregate changes in pre-existing liabilities due to claim developments	264	529
Settlements made during the period (in cash or in kind)	(540)	(1,498)
Product warranty and recall at end of period	$ 7,395	$ 6,217

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 48,427	$ 62,825
Accounts receivable, less reserves of $3,693 and $3,514, respectively	150,599	133,736
Inventories, net	129,644	114,058
Prepaid expenses and other current assets	33,728	29,617
Total current assets	362,398	340,236
Long-term assets:
Property, plant and equipment, net	109,602	110,872
Other assets:
Intangible assets, net	70,002	68,842
Goodwill	60,408	58,521
Investments and other long-term assets, net	10,546	9,851
Total long-term assets	250,558	248,086
Total assets	612,956	588,322
Current liabilities:
Current portion of debt	21,559	12,187
Accounts payable	91,245	84,884
Accrued expenses and other current liabilities	58,905	56,651
Total current liabilities	171,709	153,722
Long-term liabilities:
Long-term debt, net	184,077	185,045
Deferred income taxes	57,844	57,026
Other long-term liabilities	4,429	3,995
Total long-term liabilities	246,350	246,066
Shareholders' equity:
Preferred Shares, without par value, authorized 5,000 shares, none issued
Common Shares, without par value, authorized 60,000 shares, issued 28,851 and 28,803 shares and outstanding 28,244 and 28,483 shares at March 31, 2014 and December 31, 2013, respectively, with no stated value
Additional paid-in capital	188,909	187,742
Common Shares held in treasury, 607 and 320 shares at March 31, 2014 and December 31, 2013, respectively, at cost	(1,193)	(519)
Accumulated deficit	(6,303)	(7,771)
Accumulated other comprehensive loss	(26,423)	(30,458)
Total Stoneridge Inc. shareholders' equity	154,990	148,994
Noncontrolling interest	39,907	39,540
Total shareholders' equity	194,897	188,534
Total liabilities and shareholders' equity	$ 612,956	$ 588,322

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Segment Reporting (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Net Sales:
Total net sales	$ 236,389	$ 235,710
Long-term Assets:
Total long-term assets	250,558		248,086
North America [Member]
Net Sales:
Total net sales	155,330	153,099
Long-term Assets:
Total long-term assets	76,289		79,219
South America [Member]
Net Sales:
Total net sales	33,916	42,429
Long-term Assets:
Total long-term assets	158,108		154,226
Europe and Other [Member]
Net Sales:
Total net sales	47,143	40,182
Long-term Assets:
Total long-term assets	$ 16,161		$ 14,641

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
OPERATING ACTIVITIES:
Net income	$ 490	$ 4,283
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation	6,742	7,417
Amortization, including accretion of debt discount	1,434	1,763
Deferred income taxes	421	(912)
Earnings of equity method investee	(238)	(201)
Loss (gain) on sale of fixed assets	26	(12)
Share-based compensation expense	1,163	1,387
Changes in operating assets and liabilities:
Accounts receivable, net	(16,425)	(17,395)
Inventories, net	(13,677)	(6,781)
Prepaid expenses and other	(4,285)	(4,958)
Accounts payable	6,316	8,795
Accrued expenses and other	1,842	6,020
Net cash used for operating activities	(16,191)	(594)
INVESTING ACTIVITIES:
Capital expenditures	(4,586)	(5,818)
Proceeds from sale of fixed assets	14	16
Net cash used for investing activities	(4,572)	(5,802)
FINANCING ACTIVITIES:
Revolving credit facility payments		(1,160)
Proceeds from issuance of other debt	10,592	13,386
Repayments of other debt	(3,515)	(2,690)
Repurchase of Common Shares to satisfy employee tax withholding	(673)	(671)
Net cash provided by financing activities	6,404	8,865
Effect of exchange rate changes on cash and cash equivalents	(39)	(300)
Net change in cash and cash equivalents	(14,398)	2,169
Cash and cash equivalents at beginning of period	62,825	44,555
Cash and cash equivalents at end of period	48,427	46,724
Supplemental disclosure of non-cash financing activities:
Change in fair value of interest rate swap	$ 144	$ (103)

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Debt (Schedule of Debt) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Dec. 31, 2013
Debt:
Total debt	$ 205,636		$ 197,232
Less: current portion	(21,559)		(12,187)
Total long-term debt, net	184,077		185,045
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facilities
Debt:
Debt, maturity	Dec - 2016
Senior Notes [Member]
Debt:
Long-term debt	173,356	[1]	173,061	[1]
Debt, maturity	Oct - 2017	[1]
Long-term debt, weighted average interest rate	9.50%	[1]
PST Short-Term Notes [Member]
Debt Instrument [Line Items]
Short-term debt	13,049		4,822
Debt:
Debt, maturity	Various 2014
PST Short-Term Notes [Member] | Maximum [Member]
Debt:
Interest rate maximum	11.76%
PST Short-Term Notes [Member] | Minimum [Member]
Debt:
Interest rate minimum	1.90%
PST Long-Term Notes [Member]
Debt:
Long-term debt	16,753		16,896
Debt maturity period range start	2014
Debt maturity period range end	2019
PST Long-Term Notes [Member] | Maximum [Member]
Debt:
Interest rate maximum	5.50%
PST Long-Term Notes [Member] | Minimum [Member]
Debt:
Interest rate minimum	4.00%
Other [Member]
Debt:
Total debt	1,030		966
Suzhou Note [Member]
Debt Instrument [Line Items]
Short-term debt	$ 1,448		$ 1,487
Debt:
Debt, maturity	Aug - 2014
Long-term debt, weighted average interest rate	7.39%

[1] Interest rate excludes the effect of the Company's interest rate swap and the accretion of debt discount.

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Debt (Tables)

3 Months Ended

Mar. 31, 2014

Debt [Abstract]

Schedule of Debt

		March 31,		December 31,	Interest rates at
		2014		2013	March 31, 2014	Maturity
Revolving Credit Facility
Asset-based credit facility	$	-	$	-	N/A	Dec - 2016
Debt
Senior secured notes, net of discount
and swap fair value adjustment (A)	$	173,356	$	173,061	9.50%	Oct - 2017
PST short-term notes		13,049		4,822	1.90%-  11.76%	Various 2014
PST long-term notes		16,753		16,896	4.00%-  5.50%	2014 - 2019
Suzhou note		1,448		1,487	7.39%	Aug - 2014
Other		1,030		966
Total debt		205,636		197,232
Less: current portion		(21,559)		(12,187)
Total long-term debt, net	$	184,077	$	185,045

(A) Interest rate excludes the effect of the Company's interest rate swap and the accretion of debt discount.

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Net Income Per Share (Narative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Equity Option [Member]
Antidilutive securities excluded from computation of earnings per share, amount	20,000	20,000
Antidilutive shares outstanding weighted average exercise price	$ 15.73	$ 15.73
Restricted Stock [Member]
Antidilutive securities excluded from computation of earnings per share, amount	466,650	663,750
Performance Based Right to Received Common Shares [Member]
Antidilutive securities excluded from computation of earnings per share, amount	374,400

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Changes in Accumulated Other Comprehensive Loss by Component (Tables)

3 Months Ended

Mar. 31, 2014

Changes in Accumulated Other Comprehensive Loss by Component [Abstract]

Changes in Accumulated Other Comprehensive Loss by Component

Changes in accumulated other comprehensive loss for the three months ended March 31, 2014 and 2013 were as follows:

		Foreign				Benefit
		currency				plan
		translation		Derivatives		liability		Total
Balance at January 1, 2014	$	(30,335)	$	(111)	$	(12)	$	(30,458)
Other comprehensive income (loss) before reclassifications		4,178		(354)		-		3,824
Amounts reclassified from accumulated other
comprehensive loss		-		211		-		211
Net other comprehensive income (loss), net of tax		4,178		(143)		-		4,035
Balance at March 31, 2014	$	(26,157)	$	(254)	$	(12)	$	(26,423)
Balance at January 1, 2013	$	(12,410)	$	2,140	$	(12)	$	(10,282)
Other comprehensive income before reclassifications		2,245		996		-		3,241
Amounts reclassified from accumulated other
comprehensive loss		-		(737)		-		(737)
Net other comprehensive income, net of tax		2,245		259		-		2,504
Balance at March 31, 2013	$	(10,165)	$	2,399	$	(12)	$	(7,778)

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Basis of Presentation

3 Months Ended

Mar. 31, 2014

Basis of Presentation [Abstract]

Basis of Presentation

(1) Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the SEC's rules and regulations. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year.

Although the Company believes that the disclosures are adequate to make the information presented not misleading, it is suggested that these condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Form 10-K for the year ended December 31, 2013. 

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]
Accounts receivable, reserves (in dollars)	$ 3,693	$ 3,514
Preferred shares, authorized	5,000,000	5,000,000
Preferred shares, issued	0	0
Common shares, authorized	60,000,000	60,000,000
Common shares, issued	28,851,000	28,803,000
Common shares, outstanding	28,244,000	28,483,000
Common shares held in treasury, shares	607,000	320,000

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Segment Reporting

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

(11) Segment Reporting

Operating segments are defined as components of an enterprise that are evaluated regularly by the Company's chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is the chief executive officer.

The Company has four reportable segments: Control Devices, Electronics, Wiring and PST which also represents its operating segments. The Control Devices reportable segment produces sensors, switches, valves and actuators. The Electronics reportable segment produces electronic instrument clusters, electronic control units and driver information systems. The Wiring reportable segment produces electrical power and signal distribution systems, primarily wiring harnesses, connectors and instrument panel assemblies. The PST reportable segment designs and manufactures electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services and in-vehicle audio and video devices.

The accounting policies of the Company's reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” of the Company's December 31, 2013 Form 10-K. The Company's management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and income before income taxes. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

A summary of financial information by reportable segment is as	as follows:
Three months ended March 31		2014		2013
Net Sales:
Control Devices	$	77,323	$	71,913
Inter-segment sales		752		796
Control Devices net sales		78,075		72,709
Electronics		50,091		44,520
Inter-segment sales		11,757		10,866
Electronics net sales		61,848		55,386
Wiring		75,059		76,848
Inter-segment sales		1,875		1,603
Wiring net sales		76,934		78,451
PST		33,916		42,429
Inter-segment sales		-		-
PST net sales		33,916		42,429
Eliminations		(14,384)		(13,265)
Total net sales	$	236,389	$	235,710
Income (Loss) Before Income Taxes:
Control Devices	$	6,835	$	6,267
Electronics		3,619		3,782
Wiring		(618)		(427)
PST		(5,612)		483
Other corporate activities		697		(864)
Corporate interest expense		(4,001)		(3,939)
Total income before income taxes	$	920	$	5,302
Depreciation and Amortization:
Control Devices	$	2,371	$	2,535
Electronics		1,101		1,279
Wiring		1,255		1,211
PST		3,169		3,832
Corporate		45		48
Total depreciation and amortization (A)	$	7,941	$	8,905
Interest Expense, net:
Control Devices	$	61	$	47
Electronics		199		187
Wiring		11		124
PST		668		277
Corporate		4,001		3,939
Total interest expense, net	$	4,940	$	4,574
Capital Expenditures:
Control Devices	$	1,734	$	3,240
Electronics		647		469
Wiring		479		516
PST		1,667		1,466
Corporate		59		127
Total capital expenditures	$	4,586	$	5,818

		March 31,		December 31,
		2014		2013
Total Assets:
Control Devices	$	117,551	$	105,730
Electronics		110,638		105,352
Wiring		113,048		98,180
PST		248,070		237,649
Corporate (B)		294,583		308,167
Eliminations		(270,934)		(266,756)
Total assets	$	612,956	$	588,322

(A) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible              assets.

(B) Assets located at Corporate consist primarily of cash, intercompany loan receivables, equity investments and investments in subsidiaries.

The following table presents net sales and long-term assets for each of the geographic areas in which the Company operates: 

Three months ended March 31		2014		2013
Net Sales:
North America	$	155,330	$	153,099
South America		33,916		42,429
Europe and Other		47,143		40,182
Total net sales	$	236,389	$	235,710

		March 31,		December 31,
		2014		2013
Long-term Assets:
North America	$	76,289	$	79,219
South America		158,108		154,226
Europe and Other		16,161		14,641
Total long-term assets	$	250,558	$	248,086

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	STONERIDGE INC
Entity Central Index Key	0001043337
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	sri
Entity Common Stock Shares Outstanding		28,244,497
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2014

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Investments

3 Months Ended

Mar. 31, 2014

Investments [Abstract]

Investments

(12) Investments

Minda Stoneridge Instruments Ltd.

The Company has a 49% interest in Minda Stoneridge Instruments Ltd. (“Minda”), a company based in India that manufactures electronics, instrumentation equipment and sensors primarily for the motorcycle and commercial vehicle market. The investment is accounted for under the equity method of accounting. The Company's investment in Minda recorded as a component of investments and other long-term assets, net on the condensed consolidated balance sheets, was $6,417 and $5,981 at March 31, 2014 and December 31, 2013, respectively. Equity in earnings of Minda included in the condensed consolidated statements of operations was $238 and $201, for the three months ended March 31, 2014 and 2013, respectively. 

PST Eletrônica Ltda.

The Company has a 74% controlling interest in PST. Noncontrolling interest in PST increased by $367 to $39,907 at March 31, 2014 due to a favorable change in foreign currency translation of $1,345,which was partially offset by a proportionate share of its net loss of $978 for the three months ended March 31, 2014. Noncontrolling interest in PST increased by $601 to $44,677 at March 31, 2013 due to a favorable change in foreign currency translation of $647 and a proportionate share of its net income of $165 for the three months ended March 31, 2013, which were partially offset by a dividend of $211. Comprehensive income related to the PST noncontrolling interest was $367 and $812 for the three months ended March 31, 2014 and 2013, respectively. 

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Net sales	$ 236,389	$ 235,710
Costs and expenses:
Cost of goods sold	181,600	176,981
Selling, general and administrative	47,221	48,437
Operating income	7,568	10,292
Interest expense, net	4,940	4,574
Equity in earnings of investee	(238)	(201)
Other expense, net	1,946	617
Income before income taxes	920	5,302
Provision for income taxes	430	1,019
Net income	490	4,283
Net income (loss) attributable to noncontrolling interest	(978)	160
Net income attributable to Stoneridge, Inc.	$ 1,468	$ 4,123
Earnings per share attributable to Stoneridge, Inc.:
Basic (in dollars per share)	$ 0.05	$ 0.15
Diluted (in dollars per share)	$ 0.05	$ 0.15
Weighted average shares outstanding:
Basic (in shares)	26,854,017	26,601,282
Diluted (in shares)	27,408,781	27,395,041

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Net Income Per Share

3 Months Ended

Mar. 31, 2014

Net Income Per Share [Abstract]

Net Income Per Share

(6) Net Income Per Share

Basic net income per share was computed by dividing net income by the weighted-average number of Common Shares outstanding for each respective period. Diluted net income per share was calculated by dividing net income attributable to Stoneridge, Inc. by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. 

Weighted-average Common Shares outstanding used in calculating basic and diluted net income per share were as follows:

Three months ended March 31	2014		2013
Basic weighted-average Common Shares outstanding		26,854,017		26,601,282
Effect of dilutive shares		554,764		793,759
Diluted weighted-average Common Shares outstanding		27,408,781		27,395,041

 Options not included in the computation of diluted net income per share to purchase 20,000 Common Shares at an average price of $15.73 per share were outstanding at March 31, 2014 and 2013. These outstanding options were not included in the computation of diluted net income per share because their respective exercise prices were greater than the average closing market price of Company Common Shares and the effect would be anti-dilutive.

There were 466,650 and 663,750 performance-based restricted Common Shares outstanding at March 31, 2014 and 2013, respectively. There were also 374,400 performance-based right to receive Common Shares outstanding at March 31, 2014. These shares were not included in the computation of diluted net income per share because all vesting conditions have not been achieved as of March 31, 2014 and 2013.  These shares may become dilutive based on the Company’s ability to meet or exceed future performance targets.

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Debt

3 Months Ended

Mar. 31, 2014

Debt [Abstract]

Debt

(5) Debt

Debt consisted of the following at March 31, 2014 and December 31, 2013:

		March 31,		December 31,	Interest rates at
		2014		2013	March 31, 2014	Maturity
Revolving Credit Facility
Asset-based credit facility	$	-	$	-	N/A	Dec - 2016
Debt
Senior secured notes, net of discount
and swap fair value adjustment (A)	$	173,356	$	173,061	9.50%	Oct - 2017
PST short-term notes		13,049		4,822	1.90%-  11.76%	Various 2014
PST long-term notes		16,753		16,896	4.00%-  5.50%	2014 - 2019
Suzhou note		1,448		1,487	7.39%	Aug - 2014
Other		1,030		966
Total debt		205,636		197,232
Less: current portion		(21,559)		(12,187)
Total long-term debt, net	$	184,077	$	185,045

(A) Interest rate excludes the effect of the Company's interest rate swap and the accretion of debt discount.

Revolving Credit Facility

On November 2, 2007, the Company entered into an asset-based credit facility (the “Credit Facility”), which permits borrowing up to a maximum level of $100,000. The Company entered into an Amended and Restated Credit and Security Agreement and a Second Amended and Restated Credit and Security Agreement (the “Second Amended and Restated Agreement”) on September 20, 2010 and December 1, 2011, respectively. The Second Amended and Restated Agreement extended the termination date of the Credit Facility to December 1, 2016, increased the borrowing base by increasing the sublimit on eligible inventory located at Mexican facilities and made changes to certain covenants relating to, among other things, guarantees, investments, capital expenditures and permitted indebtedness. The Credit Facility requires a commitment fee of 0.375% on the unused balance. Interest is payable quarterly at either (i) the higher of the prime rate or the Federal Funds rate plus 0.50%, plus a margin of 0.00% to 0.25% or (ii) LIBOR plus a margin of 1.00% to 1.75%, depending upon the Company's undrawn availability, as defined.

The available borrowing capacity on the Credit Facility is based on eligible current assets, as defined. At March 31, 2014 and December 31, 2013, the Company had undrawn borrowing capacity of approximately $87,034 and $71,072, respectively. The Credit Facility contains financial performance covenants which would only constrain the Company’s borrowing capacity if our undrawn availability falls below $20,000. Other restrictions include limits on capital expenditures, operating leases, dividends and investment activities in negative covenants which limit investment activities to $15,000 minus certain guarantees and obligations.

The Company was in compliance with all Credit Facility covenants at March 31, 2014 and December 31, 2013.

Debt

On October 4, 2010, the Company issued $175,000 of senior secured notes which are included as a component of long-term debt, net on the condensed consolidated balance sheets. These senior secured notes bear interest at an annual rate of 9.5% and mature on October 15, 2017. The senior secured notes were issued to the original purchasers at a 2.5% discount for which the remaining balance at March 31, 2014 and December 31, 2013 was $2,582 and $2,732, respectively. The senior secured notes are redeemable in full, at the Company's option, beginning October 15, 2014 at 104.75%. Interest payments are payable on April 15 and October 15 of each year. The senior secured notes indenture limits the amount of the Company and its restricted subsidiaries' indebtedness, restricts certain payments and includes various other non-financial restrictive covenants. The senior secured notes are guaranteed by all of the Company's existing domestic restricted subsidiaries. All other restricted subsidiaries that may guarantee any indebtedness of the Company or the guarantors will also guarantee the senior secured notes. 

Our consolidated subsidiary PST Eletrônica Ltda. (“PST”) maintains several short-term and long-term notes used for working capital purposes that have fixed interest rates.  The weighted-average interest rates of short-term and long-term debtof PST at March 31, 2014 were 9.1% and 4.9%, respectively. Depending on the specific note, interest is payable either monthly or annually. The PST notes at March 31, 2014  mature as follows:$19,130 in 2014, $5,184in 2015,  $2,207 in 2016 and approximately $1,094 annually in 2017, 2018and2019. 

On August 21, 2013, the Company's wholly-owned subsidiary located in Suzhou, China entered into a term loan for 9,000 Chinese yuan which matured in February 2014.  On February 25, 2014, the subsidiary entered into a new term loan for 9,000 Chinese yuan (the “Suzhou note”).  The U.S. dollar equivalent outstanding loan balance was $1,448 and $1,487 at March 31, 2014 and December 31, 2013, respectively. The Suzhou note is included on the condensed consolidated balance sheets as a component of current portion of long-term debt. The term loan matures in August 2014 with interest payable quarterly at 132.0% of the one-year lending rate published by The People's Bank of China, which was 7.39% at March 31, 2014.

The Company was in compliance with all note covenants at March 31, 2014 and December 31, 2013.

The Company's wholly-owned subsidiary located in Stockholm, Sweden, has an overdraft credit line which allows overdrafts on the subsidiary's bank account up to a maximum level of 20,000 Swedish krona, or $3,090 and $3,107,  at March 31, 2014 and December 31, 2013, respectively. At March 31, 2014 and December 31, 2013, there was no balance outstanding on thisbank account.

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Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Net Income Per Share [Abstract]

Schedule of Weighted Average Number of Shares

Weighted-average Common Shares outstanding used in calculating basic and diluted net income per share were as follows:

Three months ended March 31	2014		2013
Basic weighted-average Common Shares outstanding		26,854,017		26,601,282
Effect of dilutive shares		554,764		793,759
Diluted weighted-average Common Shares outstanding		27,408,781		27,395,041

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Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2014

Recently Issued Accounting Standards [Abstract]

Recently Issued Accounting Standards

(13)  Recently Issued Accounting Standards

Accounting Standards Adopted

In July 2013, the Financial Accounting Standards Board issued an accounting standards update requiring entities to present in the financial statements an unrecognized tax benefit, or a portion of an unrecognized tax benefit as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except to the extent such items are not available or not intended to be used at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position. In such instances, the unrecognized tax benefit is required to be presented in the financial statements as a liability and not be combined with deferred tax assets. This standards update is effective for fiscal yearsbeginning after December 15, 2013. We adopted this standards update on January 1, 2014 which did not have a material impact on our condensed consolidated financial statements.

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2014

Employee Benefit Plans [Abstract]

Employee Benefit Plans

(9) Employee Benefit Plans

Long-Term Cash Incentive Plan

In March 2009, the Company adopted the Stoneridge, Inc. Long-Term Cash Incentive Plan (“LTCIP”) and granted awards to certain officers and key employees. In May 2009, the LTCIP was approved by the Company's shareholders.

The Company granted awards under the LTCIP in 2013 which provided recipients with the right to receive an amount of cash equal to the fair market value of a specific number of Phantom Shares three years from the date of grant depending on the Company's actual earnings per share performance for each fiscal year of 2013, 2014, and 2015 within the performance period. The Company records an accrual for awards to be paid in the period earned based on anticipated achievement of the performance goal. If the participant voluntarily terminates employment or is discharged for cause, as defined in the LTCIP, the award is forfeited. There was no accrual recorded related to the LTCIP at March 31, 2014 for the 2013 or 2014 performance periods.

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Changes in Accumulated Other Comprehensive Loss by Component

3 Months Ended

Mar. 31, 2014

Changes in Accumulated Other Comprehensive Loss by Component [Abstract]

Changes in Accumulated Other Comprehensive Loss by Component

(7) Changes in Accumulated Other Comprehensive Loss by Component

Changes in accumulated other comprehensive loss for the three months ended March 31, 2014 and 2013 were as follows:

		Foreign				Benefit
		currency				plan
		translation		Derivatives		liability		Total
Balance at January 1, 2014	$	(30,335)	$	(111)	$	(12)	$	(30,458)
Other comprehensive income (loss) before reclassifications		4,178		(354)		-		3,824
Amounts reclassified from accumulated other
comprehensive loss		-		211		-		211
Net other comprehensive income (loss), net of tax		4,178		(143)		-		4,035
Balance at March 31, 2014	$	(26,157)	$	(254)	$	(12)	$	(26,423)
Balance at January 1, 2013	$	(12,410)	$	2,140	$	(12)	$	(10,282)
Other comprehensive income before reclassifications		2,245		996		-		3,241
Amounts reclassified from accumulated other
comprehensive loss		-		(737)		-		(737)
Net other comprehensive income, net of tax		2,245		259		-		2,504
Balance at March 31, 2013	$	(10,165)	$	2,399	$	(12)	$	(7,778)

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies

(8)  Commitments and Contingencies

In the ordinary course of business, the Company is subject to a broad range of claims and legal proceedings that relate to contractual allegations, tax audits, patent infringement, product liability and employment-related matters. Although it is not possible to predict with certainty the outcome of these matters, the Company is of the opinion that the ultimate resolution of these matters will not have a material adverse affect on its consolidated results of operations or financial position.

As a result of environmental studies performed at the Company’s former facility located in Sarasota, Florida, the Company became aware of soil and groundwater contamination at the Company site.  The Company engaged an environmental engineering consultant to assess the level of contamination and to develop a remediation and monitoring plan for the site.  Soil remediation at the site was completed during the year ended December 31, 2010.  Ground water remediation will begin in the second quarter of 2014,  as the remedial action plan has been approved by the Florida Department of Environmental Protection.  During the three months ended March 31, 2014 and 2013, environmental remediation costs incurred were immaterial.At March 31, 2014 and December 31, 2013, the Company had accrued an undiscounted liability of $944 related to future remediation.  At March 31, 2014 and December 31, 2013, $683 was recorded as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets while the remaining amount was recorded as a component of other long-term liabilities. A majority of the costs associated with the recorded liability will be incurred at the start of the groundwater remediation, with the balance relating to monitoring costs to be incurred over multiple years.  Although the Company sold the Sarasota facility and related property in December 2011, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the closing terms of the sale agreement included a requirement for the Company to maintain a $2,000 letter of credit for the benefit of the buyer.

In September 2013, a legal proceeding was initiated by Actia in a French court alleging infringement of its patents by the Company’s Electronics segment.  Actia is seeking injunctive relief and monetary damages of approximately $19,000 resulting from such alleged infringement.  The Company believes that its products did not infringe on any of the patents claimed by Actia.  The Company believes Actia’s claims are without merit, and therefore is vigorously defending itself against these allegations.

On May 24, 2013, the State Revenue Services of São Paulo issued a tax deficiency notice against PST, our 74% owned consolidated subsidiary, claiming that the vehicle tracking and monitoring services it provides should be classified as communication services, and therefore subject to the State Value Added Tax – ICMS. The State Revenue Services assessment imposed the 25.0% ICMS tax on all revenues of PST related to the vehicle tracking and monitoring services during the period from January 2009 through December 2010. The Brazilian real (“R$”) and U.S. dollar equivalent (“$”) of the aggregate tax assessment is approximately R$92,500($40,900) which is comprised of Value Added Tax – ICMS of R$13,200($5,800), interest of R$11,400($5,100) and penalties of R$67,900($30,000).

The Company believes that the vehicle tracking and monitoring services are non-communication services, as defined under Brazilian tax law, subject to the municipal ISS tax, not communication services subject to state ICMS tax as claimed by the State Revenue Services of São Paulo. PST has, and will continue to collect the municipal ISS tax on the vehicle tracking and monitoring services in compliance with Brazilian tax law and will defend its tax position. PST has received a legal opinion that the merits of the case are favorable to PST, determining among other things that the imposition on the subsidiary of the State ICMS by the State Revenue Services of São Paulo is not in accordance with the Brazilian tax code.  Management believes, based on the legal opinion of PST’s Brazilian legal counsel and the results of the Brazil Administrative Court's ruling in favor of another vehicle tracking and monitoring company related to the tax deficiency notice it received, the likelihood of loss is not probable although it may take years to resolve.  As a result of the above, as of March 31, 2014 and December 31, 2013, no accrual has been recorded with respect to the tax assessment.  An unfavorable judgment on this issue for the years assessed and for subsequent years could result in significant costs to PST and adversely affect its results of operations.

In addition, PST has civil, labor and other tax contingencies for which the likelihood of loss is deemed to be reasonably possible, but not probable, by its legal advisors.  As a result, no provision has been recorded with respect to these contingencies, which amounted to $13,633 and $11,469 at March 31, 2014 and December 31, 2013, respectively.  An unfavorable outcome on this issue could result in significant cost to PST and adversely affect its results of operations.

Product Warranty and Recall

Amounts accrued for product warranty and recall claims are established based on the Company's best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The current portion of product warranty and recall is included as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets. Product warranty and recall included $1,133 and $1,019 of a long-term liability at March 31, 2014 and December 31, 2013, respectively, which is included as a component of other long-term liabilities on the condensed consolidated balance sheets.

The following provides a reconciliation of changes in product warranty and recall liability:

Three months ended March 31		2014		2013
Product warranty and recall at beginning of period	$	6,481	$	6,107
Accruals for products shipped during period		1,190		1,079
Aggregate changes in pre-existing liabilities due to claim developments		264		529
Settlements made during the period (in cash or in kind)		(540)		(1,498)
Product warranty and recall at end of period	$	7,395	$	6,217

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Income Taxes

3 Months Ended

Mar. 31, 2014

Income Taxes [Abstract]

Income Taxes

(10) Income Taxes

The Company adjusts its effective tax rate each quarter based on the estimated annual effective tax rate, as required. The Company also records the tax impact of certain discrete, unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year where no tax benefit can be recognized are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projected earnings.

The Company recognized a provision for income taxes of $430, or 46.7% and $1,019, or 19.2% of income before income taxes, for federal, state and foreign income taxes for the three months ended March 31, 2014 and 2013, respectively. The decrease in the tax provision was primarily due to lower income before income taxes in the current period compared to the same period for 2013 primarily due to the loss incurred by PST.  The reduction in income tax expense was partially offset by discrete tax items related to certain foreign operations recorded during the current period.  The increase in the effective tax rate for the three months ended March 31, 2014 compared to the same period for 2013 was primarily attributable to the negative impact of recognizing a tax benefit on the PST loss at a local tax rate lower than the Company’s statutory rate as well as the impact of the discrete tax items referenced above.

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Debt (Narrative) (Details)	3 Months Ended			3 Months Ended						3 Months Ended			3 Months Ended			3 Months Ended											3 Months Ended
	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Mar. 31, 2014 People's Bank of China One-Year Lending Rate [Member]	Mar. 31, 2014 Maximum [Member] London Interbank Offered Rate (LIBOR) [Member]	Mar. 31, 2014 Minimum [Member] London Interbank Offered Rate (LIBOR) [Member]	Mar. 31, 2014 Senior Notes [Member] USD ($)		Dec. 31, 2013 Senior Notes [Member] USD ($)	Oct. 04, 2010 Senior Notes [Member]	Mar. 31, 2014 Revolving Credit Facility [Member] USD ($)	Dec. 31, 2013 Revolving Credit Facility [Member] USD ($)	Nov. 02, 2007 Revolving Credit Facility [Member] USD ($)	Mar. 31, 2014 Revolving Credit Facility [Member] Federal Funds Rate [Member]	Mar. 31, 2014 Revolving Credit Facility [Member] Maximum [Member] Federal Funds Rate [Member]	Mar. 31, 2014 Revolving Credit Facility [Member] Minimum [Member] USD ($)	Mar. 31, 2014 Revolving Credit Facility [Member] Minimum [Member] Federal Funds Rate [Member]	Mar. 31, 2014 Line of Credit [Member] USD ($)	Mar. 31, 2014 Line of Credit [Member] SEK	Dec. 31, 2013 Line of Credit [Member] USD ($)	Dec. 31, 2013 Line of Credit [Member] SEK	Mar. 31, 2014 Term Loan [Member] USD ($)	Feb. 25, 2014 Term Loan [Member] CNY	Dec. 31, 2013 Term Loan [Member] USD ($)	Mar. 31, 2014 Term Loan One [Member] USD ($)	Dec. 31, 2013 Term Loan One [Member] USD ($)	Aug. 21, 2013 Term Loan One [Member] CNY	Mar. 31, 2014 Term Loan One [Member] People's Bank of China One-Year Lending Rate [Member]	Mar. 31, 2014 PST Eletronicaltda [Member]	Mar. 31, 2014 PST Eletronicaltda [Member] Term Loan [Member] USD ($)
Debt Instrument [Line Items]
Credit Facility covenat compliance	The Company was in compliance with all Credit Facility covenants at March 31, 2014 and December 31, 2013
Notes covenant compliance	The Company was in compliance with all note covenants at March 31, 2014 and December 31, 2013.
Debt, description of variable rate basis										. Interest is payable quarterly at either (i) the higher of the prime rate or the Federal Funds rate plus 0.50%, plus a margin of 0.00% to 0.25% or (ii) LIBOR plus a margin of 1.00% to 1.75%, depending upon the Company's undrawn availability, as defined.
Debt interest rate			7.39%																										4.90%
Debt instrument, maturity date						Oct. 15, 2017
Debt instrument, unamortized discount, percentage									2.50%
Credit facility, commitment fee percentage										0.375%
Line of credit facility, maximum borrowing capacity												$ 100,000,000					$ 3,090,000	20,000,000	$ 3,107,000	20,000,000
Credit facility, borrowing capacity										87,034,000	71,072,000
Basis spread on variable rate				1.75%	1.00%								0.50%	0.25%		0.00%
Interest rate multiplier																											132.00%
Line of credit, current																					0		0
Face value of senior secured notes						175,000,000		175,000,000
Line of credit facility covenant limits															20,000,000
Credit facility, capacity restrictions of investment activities										15,000,000
Note redeemable start date						Oct. 15, 2014
Debt early redemption premium						104.75%
Unamortized discount						2,582,000		2,732,000
Debt, face amount																						9,000,000				9,000,000
Debt outstanding																								1,448,000	1,487,000
Credit facilities
Total long-term debt, net	184,077,000	185,045,000
Less: current portion	21,559,000	12,187,000
2014																													19,130,000
2015																													5,184,000
2016																													2,207,000
2017																													1,094,000
2018																													1,094,000
2019																													$ 1,094,000
Long-term debt, weighted average interest rate						9.50%	[1]																					4.90%
Short-term debt, weighted average interest rate																												9.10%

[1] Interest rate excludes the effect of the Company's interest rate swap and the accretion of debt discount.

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Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Financial Instruments and Fair Value Measurements [Abstract]

Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance

The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets are as follows: 

					Prepaid expenses and other
					current assets / Other				Accrued expenses and other
	Notional amounts (A)				long-term assets				current liabilities
	March 31,		December 31,		March 31,		December 31,			March 31,		December 31,
	2014		2013		2014		2013			2014		2013
Derivatives designated as hedging instruments:
Cash Flow Hedges:
Forward currency contracts		$ 33,750		$ 45,000		$ 36		$-			$-		$ 263
Fixed price commodity contracts		1,146		1,582		$-		$ 152			$ 290		$-
Fair Value Hedge:
Interest rate swap contract		$ 45,000		$ 45,000		$ 937		$ 793			$-		$-
Derivatives not designated as hedging instruments:
Forward currency contracts		$ 13,526		$ 13,335		$-		$-			$ 16		$ 18

(A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds.

Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net Income

Amounts recorded for the cash flow hedges in other comprehensive income and in net income for the three months ended March 31 are as follows: 

	Gain (loss) recorded in other comprehensive income				Gain (loss) reclassified from other comprehensive income into net income
	2014		2013		2014		2013
Derivatives designated as cash flow hedges:
Forward currency contracts	$	118	$	1,741	$	(181)	$	675
Fixed price commodity contracts		(472)		(745)		(30)		62
Total derivatives designated as cash flow hedges	$	(354)	$	996	$	(211)	$	737

Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of the inputs used.

	March 31,								December 31,
	2014								2013
	Fair values estimated using
			Level 1		Level 2		Level 3
	Fair value		inputs (A)		inputs (B)		inputs (C)		Fair value
Financial assets carried at fair value:
Interest rate swap contract	$	937	$	-	$	937	$	-	$	793
Forward currency contracts		36		-		36		-		-
Fixed price commodity contracts		-		-		-				152
Total financial assets carried at fair value	$	973	$	-	$	973	$	-	$	945
Financial liabilities carried at fair value:
Forward currency contracts	$	16	$	-	$	16	$	-	$	281
Fixed price commodity contracts		290		-		290		-		-
Total financial liabilities carried at fair value	$	306	$	-	$	306	$	-	$	281

(A)	Fair values estimated using Level 1 inputs, which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company did not have any fair value estimates using Level 1 inputs at March 31, 2014 or December 31, 2013.
(B)	Fair values estimated using Level 2 inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency, fixed price commodity and interest rate swap contracts, inputs include foreign currency exchange rates, commodity indexes and the six-month forward LIBOR.
(C)	Fair values estimated using Level 3 inputs consist of significant unobservable inputs. The Company did not have any fair value estimates using Level 3 inputs at March 31, 2014 or December 31, 2013.

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

A summary of financial information by reportable segment is as	as follows:
Three months ended March 31		2014		2013
Net Sales:
Control Devices	$	77,323	$	71,913
Inter-segment sales		752		796
Control Devices net sales		78,075		72,709
Electronics		50,091		44,520
Inter-segment sales		11,757		10,866
Electronics net sales		61,848		55,386
Wiring		75,059		76,848
Inter-segment sales		1,875		1,603
Wiring net sales		76,934		78,451
PST		33,916		42,429
Inter-segment sales		-		-
PST net sales		33,916		42,429
Eliminations		(14,384)		(13,265)
Total net sales	$	236,389	$	235,710
Income (Loss) Before Income Taxes:
Control Devices	$	6,835	$	6,267
Electronics		3,619		3,782
Wiring		(618)		(427)
PST		(5,612)		483
Other corporate activities		697		(864)
Corporate interest expense		(4,001)		(3,939)
Total income before income taxes	$	920	$	5,302
Depreciation and Amortization:
Control Devices	$	2,371	$	2,535
Electronics		1,101		1,279
Wiring		1,255		1,211
PST		3,169		3,832
Corporate		45		48
Total depreciation and amortization (A)	$	7,941	$	8,905
Interest Expense, net:
Control Devices	$	61	$	47
Electronics		199		187
Wiring		11		124
PST		668		277
Corporate		4,001		3,939
Total interest expense, net	$	4,940	$	4,574
Capital Expenditures:
Control Devices	$	1,734	$	3,240
Electronics		647		469
Wiring		479		516
PST		1,667		1,466
Corporate		59		127
Total capital expenditures	$	4,586	$	5,818

		March 31,		December 31,
		2014		2013
Total Assets:
Control Devices	$	117,551	$	105,730
Electronics		110,638		105,352
Wiring		113,048		98,180
PST		248,070		237,649
Corporate (B)		294,583		308,167
Eliminations		(270,934)		(266,756)
Total assets	$	612,956	$	588,322

(A) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible              assets.

(B) Assets located at Corporate consist primarily of cash, intercompany loan receivables, equity investments and investments in subsidiaries.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following table presents net sales and long-term assets for each of the geographic areas in which the Company operates: 

Three months ended March 31		2014		2013
Net Sales:
North America	$	155,330	$	153,099
South America		33,916		42,429
Europe and Other		47,143		40,182
Total net sales	$	236,389	$	235,710

		March 31,		December 31,
		2014		2013
Long-term Assets:
North America	$	76,289	$	79,219
South America		158,108		154,226
Europe and Other		16,161		14,641
Total long-term assets	$	250,558	$	248,086

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Employee Benefit Plans (Details) (Long Term Cash Incentive Plan [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Long Term Cash Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation liability, current and noncurrent	$ 0	$ 0

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement Of Other Comprehensive Income [Abstract]
Net income	$ 490	$ 4,283
Other comprehensive income, net of tax:
Foreign currency translation adjustments	4,178	2,245
Unrealized gain (loss) on derivatives	(143)	259
Other comprehensive income, net of tax	4,035	2,504
Consolidated comprehensive income	4,525	6,787
Income (loss) attributable to noncontrolling interest	(978)	160
Comprehensive income attributable to Stoneridge, Inc.	$ 5,503	$ 6,627

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Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Share-Based Compensation [Abstract]

Share-Based Compensation

(4) Share-Based Compensation

Total compensation expense for share-based compensation arrangements recognized in the condensed consolidated statements of operations as a component of selling, general and administrative expenses was $1,163 and $1,387 for the three months ended March 31, 2014 and 2013, respectively. Of these amounts, $0 and $156 were related to the Long-Term Cash Incentive Plan “Phantom Shares” discussed in Note 9for the three months ended March 31, 2014 and 2013, respectively. 

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Inventories (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventories [Abstract]
Inventory amount, FIFO	$ 73,523	$ 67,750
Inventory amount, weighted average cost	$ 56,121	$ 46,308

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Changes in Accumulated Other Comprehensive Loss by Component (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012
Changes in Accumulated Other Comprehensive Loss by Component [Abstract]
Foreign currency translation, Beginning balance	$ (30,335)	$ (12,410)
Foreign currency translation, Other comprehensive loss before reclassifications	4,178	2,245
Foreign currency translation, Amounts reclassified from accumulated other comprehensive loss
Other comprehensive income (loss), Foreign currency transaction and translation adjustment, net of tax	4,178	2,245
Foreign currency translation, Ending balance	(26,157)	(10,165)
Unrealized gain (loss) on derivatives, Beginning balance	(111)	2,140
Unrealized gain (loss) on derivatives, Net other comprehensive loss, net of tax	(354)	996
Unrealized gain (loss) on derivatives, Amounts reclassified from accumulated other comprehensive loss	211	(737)
Unrealized gain (loss) on derivatives, Net other comprehensive loss, net of tax	(143)	259
Unrealized gain (loss) on derivatives, Ending balance	(254)	2,399
Post employment benefit liability, Beginning balance	(12)	(12)
Post employment benefit liability, Other comprehensive loss before reclassifications
Post employment benefit liability, Amounts reclassified from accumulated other comprehensive loss
Post employment benefit liability ,Other comprehensive income (loss)
Post employment benefit liability, Ending balance	(12)	(12)
Total, Other comprehensive loss before reclassifications	3,824	3,241
Total, Amounts reclassified from accumulated other comprehensive loss	211	(737)
Other comprehensive income, net of tax	4,035	2,504
Accumulated other comprehensive income (loss), net of tax, total	$ (26,423)	$ (7,778)	$ (30,458)	$ (10,282)

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Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventories [Abstract]

Schedule of Inventory, Current

Inventory cost includes material, labor and overhead. Inventories consisted of the following:

		March 31,		December 31,
		2014		2013
Raw materials	$	80,888	$	71,631
Work-in-progress		17,683		16,168
Finished goods		31,073		26,259
Total inventories, net	$	129,644	$	114,058