8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

__________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  January 17, 2008

STRATTEC SECURITY CORPORATION

(Exact name of registrant as specified in its charter)

Wisconsin

(State or other jurisdiction of incorporation)

0-25150	39-1804239
(Commission File Number)	(I.R.S. Employer I.D. Number)

3333 West Good Hope Road Milwaukee, WI	53209
(Address of Principal Executive Offices)	(Zip Code)

(414) 247-3333

(Registrant's telephone number; including area code)

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

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

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

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

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

Section 2 – Financial Information

Item 2.02.  Results of Operations and Financial Condition.

On January 17, 2008, STRATTEC SECURITY CORPORATION issued a press release (the "Press Release") announcing results for the fiscal second quarter ended December 30, 2007.  A copy of the Press Release is attached as Exhibit 99.1 to this report.  The attached Exhibit 99.1 is furnished pursuant to Item 2.02 of Form 8-K.

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.

Section 9 - Financial Statements and Exhibits

Item 9.01.    Financial Statements and Exhibits.

           (d)     Exhibits

                     99.1 -- Press Release of STRATTEC SECURITY CORPORATION, issued January 17, 2008.

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SIGNATURE

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.

STRATTEC SECURITY CORPORATION

Date:  January 18, 2008

BY_____________________________________

      Patrick J. Hansen, Senior Vice President

      and Chief Financial Officer

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EX-99.1

Exhibit 99.1

Contact:  Pat Hansen

Senior Vice President and

Chief Financial Officer

414-247-3435

www.strattec.com

STRATTEC SECURITY CORPORATION

REPORTS FISCAL SECOND QUARTER RESULTS

Milwaukee, Wisconsin – January 17, 2008 -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today reported operating results for the fiscal second quarter ended December 30, 2007.

Net sales for the Company’s second quarter ended December 30, 2007 were $39.9 million, compared to net sales of $37.9 million for the second quarter ended December 31, 2006.  Net income for the period was $1.3 million, compared to $1.1 million in the prior year quarter.  Diluted earnings per share for the period were $.38 compared to $.31 in the prior year quarter.

For the six months ended December 30, 2007, net sales were $82.6 million compared to net sales of $76.0 million in the prior year period.  Net income was $3.7 million compared to net income of $1.8 million in the prior year period and diluted earnings per share were $1.06 compared to $.51.

Sales to STRATTEC’s largest customers overall were flat in the current quarter compared to the prior year quarter.  Sales to General Motors Corporation in the current quarter were $11.9 million compared to $7.4 million in the prior year quarter due to higher product content on certain GM vehicles and the takeover of certain passenger car locksets production from another supplier.  Sales to Chrysler LLC were $10.0 million compared to $14.3 million and sales to Delphi Corporation were $3.8 million compared to $4.2 million due to reduced component content and lower vehicle production volumes.  Sales to Ford Motor Company were $4.4 million compared to $4.3 million.  Sales during the current quarter were weaker than initially anticipated for the above four customers due to their production cut backs.  Subsequently, these customers announced additional production cuts that will effect both our sales and profitability for the third fiscal quarter ending March 30, 2008.

Gross profit margins were 17.3% in the current quarter compared to 13.3% in the prior year quarter.   The year-over-year increase in gross profit margins was primarily attributed to lower purchased material costs for zinc and brass along with price increases to recover the higher purchased raw material costs we experienced last year.  In addition, the prior year quarter included a charge for severance and separation costs related to the move of service product assembly from Milwaukee, Wisconsin to Juarez, Mexico that reduced the gross profit margin by approximately 1%.

Operating expenses were $5.8 million in the current quarter, compared to $4.9 million in the prior year quarter.  The increased spending is attributed to hiring additional engineering personnel along with costs associated with new product development.

The provision for income taxes in the current quarter was our normal 37% effective tax rate where as the prior year quarter included a State refund claim recovery that positively impacted earnings per share by $.09.

During the current quarter, the Company contributed $1.5 million to its Pension Fund and repurchased 25,500 STRATTEC SECURITY CORPORATION shares under the Company’s stock repurchase program at a cost of $1,146,000.

STRATTEC designs, develops, manufactures and markets mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches and related access control products for North American automotive customers, and for global automotive manufacturers through the VAST Alliance in which it participates with WITTE Automotive of Velbert, Germany and ADAC Plastics, Inc. of Grand Rapids, Michigan.  The Company’s history in the automotive business spans nearly 100 years.

Certain statements contained in this release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,” and “would.”   Such forward-looking statements in this release are inherently subject to many uncertainties in the Company’s operations and business environment.  These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company’s and its customers’ products, competitive and technological developments, customer purchasing actions, foreign currency fluctuations, and costs of operations.  Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.  The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this release.  In addition, such uncertainties and other operational matters are discussed further in the Company’s quarterly and annual filings with the Securities and Exchange Commission.

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STRATTEC SECURITY CORPORATION

Results of Operations

(In Thousands except per share amounts)

(Unaudited)

	Second Quarter Ended				Six Months Ended
	December 30, 2007		December 31, 2006		December 30, 2007		December 31, 2006
Net Sales	$	39,908	$	37,913	$	82,647	$	75,963
Cost of Goods Sold		33,002		32,873		67,347		65,641
Gross Profit		6,906		5,040		15,300		10,322
Engineering, Selling &
Administrative Expenses		5,838		4,852		11,631		9,908
Income from Operations		1,068		188		3,669		414
Interest Income		814		905		1,727		1,827
Interest Expense		-		-		-		-
Other Income, Net		158		121		466		149
Minority Interest		69		-		118		-
		2,109		1,214		5,980		2,390
Provision for Income Taxes		786		120		2,238		555
Net Income	$	1,323	$	1,094	$	3,742	$	1,835
Earnings Per Share:
Basic	$	0.38	$	0.31	$	1.07	$	0.51
Diluted	$	0.38	$	0.31	$	1.06	$	0.51
Average Basic
Shares Outstanding		3,506		3,539		3,513		3,568
Average Diluted
Shares Outstanding		3,512		3,542		3,518		3,571
Other
Capital Expenditures	$	2,728	$	1,377	$	4,474	$	2,292
Depreciation & Amortization	$	1,758	$	1,768	$	3,496	$	3,517

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STRATTEC SECURITY CORPORATION

Condensed Balance Sheet Data

(In Thousands)

	December 30, 2007		July 1, 2007
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	60,242	$	65,491
Receivables, net		20,090		26,890
Inventories		10,726		7,166
Other current assets		13,308		13,017
Total Current Assets		104,366		112,564
Deferred Income Taxes		2,420		2,117
Investment in Joint Ventures		3,201		2,813
Prepaid Pension Cost		6,948		4,385
Other Long Term Assets		35		41
Property, Plant and Equipment, Net		27,479		26,526
	$	144,449	$	148,446

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable	$	12,524		$	16,575
Other		16,049			14,906
Total Current Liabilities		28,573			31,481
Borrowings Under Line of Credit Facility		-			-
Accrued Pension and Postretirement Obligations		13,639			13,431
Minority Interest		775			574
Shareholders’ Equity		243,755			244,119
Accumulated Other Comprehensive Loss		(14,333	)		(14,341	)
Less:  Treasury Stock		(127,960	)		(126,818	)
Total Shareholders’ Equity		101,462			102,960
	$	144,449		$	148,446

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STRATTEC SECURITY CORPORATION

Condensed Cash Flow Statement Data

(In Thousands)

(Unaudited)

	Second Quarter Ended						Six Months Ended
	December 30, 2007			December 31, 2006			December 30, 2007			December 31, 2006
Cash Flows from Operating Activities:
Net Income	$	1,323		$	1,094		$	3,742		$	1,835
Adjustment to Reconcile Net Income to
Cash Provided by Operating Activities:
Minority Interest		(87	)		-			(148	)		-
Depreciation		1,758			1,768			3,496			3,517
Stock Based Compensation Expense		179			186			492			379
Change in Operating Assets/Liabilities		19			852			(3,400	)		986
Other, net		(124	)		33			(342	)		132
Net Cash Provided by Operating Activities		3,068			3,933			3,840			6,849
Cash Flows from Investing Activities:
Investment in Joint Ventures		-			(100	)		-			(100	)
Additions to Property, Plant and Equipment		(2,728	)		(1,377	)		(4,474	)		(2,292	)
Proceeds from Sale of Property, Plant and Equipment		-			-			-			21
Net Cash Used in Investing Activities		(2,728	)		(1,477	)		(4,474	)		(2,371	)
Cash Flow from Financing Activities:
Purchase of Common Stock		(1,146	)		(596	)		(1,146	)		(3,922	)
Dividends Paid		(31	)		-			(4,081	)		-
Contribution from Minority Interest		-			-			349			-
Loan from Minority Interest		250			-			250			-
Exercise of Stock Options and Employee Stock Purchases		6			8			13			17
Net Cash Used in Financing Activities		(921	)		(588	)		(4,615	)		(3,905	)
Net Increase (Decrease) in Cash & Cash Equivalents		(581	)		1,868			(5,249	)		573
Cash and Cash Equivalents:
Beginning of Period		60,823			64,417			65,491			65,712
End of Period	$	60,242		$	66,285		$	60,242		$	66,285

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