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):  April 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 the Exchange Act (17 CFR 240.14d-2(b))

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

Section 2 – Financial Information

Item 2.02.  Results of Operations and Financial Condition.

On April 17, 2008, STRATTEC SECURITY CORPORATION issued a press release (the "Press Release") announcing results for the fiscal third quarter ended March 30, 2008.  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 April 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:  April 18, 2008

BY /s/ Patrick J. Hansen                                           

       Patrick J. Hansen, Senior Vice President

       and Chief Financial Officer

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EX-99.1

Exhibit 99.1

FOR RELEASE AT 3:00 P.M. CDT

Contact:  Pat Hansen

Senior Vice President and

Chief Financial Officer

414-247-3435

www.strattec.com

STRATTEC SECURITY CORPORATION

REPORTS FISCAL THIRD QUARTER RESULTS

Milwaukee, Wisconsin – April 17, 2008 -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today reported operating results for the fiscal third quarter ended March 30, 2008.

Net sales for the Company’s third quarter ended March 30, 2008 were $38.4 million, compared to net sales of $45.6 million for the third quarter ended April 1, 2007.  Net income for the period was $446,000, compared to $2.9 million in the prior year quarter.  Diluted earnings per share for the period were $.13 compared to $.82 in the prior year quarter.  The lower sales and net income for the quarter reflect the negative impact of several factors depressing the demand for new vehicles in North America, and the effects of a prolonged strike against a major supplier to General Motors Corporation.  These factors have resulted in significantly lower vehicle production and correspondingly reduced sales of STRATTEC’s products.

For the nine months ended March 30, 2008, net sales were $121.1 million compared to net sales of $121.6 million in the prior year period.  Net income was $4.2 million compared to net income of $4.7 million in the prior year period and diluted earnings per share were $1.19 compared to $1.33.

Overall, sales to STRATTEC’s largest customers were significantly lower in the current quarter compared to the prior year quarter.  However, sales to General Motors Corporation in the current quarter were slightly higher, at $10.1 million compared to $9.5 million in the prior year quarter due to higher product content on certain GM vehicles and the takeover of some passenger car lockset production from another supplier.  These sales gains were partially offset by reduced sales directly related to a strike called by the UAW against a major General Motors supplier which caused General Motors to close several of it’s assembly plants supplied by STRATTEC.  Sales to Chrysler LLC were $9.7 million compared to $15.9 million and sales to Delphi Corporation were $3.8 million compared to $4.8 million due to reduced component content and lower vehicle production volumes.  Sales to Ford Motor Company were $5.0 million compared to $5.7 million due to lower production volumes.

Sales during the current quarter were generally in line with previously announced production cuts by STRATTEC’s three largest customers.  However, the impact of the strike referenced earlier was not expected and reduced sales to General Motors and Delphi Corporation by approximately $1.2 million in the current quarter.  As this strike has continued into April, we expect a similar reduction in our sales to these two customers during our fiscal fourth quarter.

Gross profit margins were 16.3% in the current quarter compared to 18.3% in the prior year quarter.   The decrease in gross profit margins was primarily attributed to the reduction in customer vehicle production volumes somewhat offset by lower purchased raw material cost for zinc in comparison to last year.

Operating expenses were $6.1 million in the current quarter, compared to $5.0 million in the prior year quarter.  The increased spending is attributed to hiring additional engineering personnel along with costs associated with new product development important to STRATTEC’s future and more near-term customer programs that are anticipated to launch during the later part of our fiscal fourth quarter.

During the current quarter, the Company contributed $1.0 million to its Pension Fund and repurchased 30,805 STRATTEC SECURITY CORPORATION shares under the Company’s stock repurchase program at a cost of $1,187,000.

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 Automotive 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)

	Third Quarter Ended					Nine Months Ended
	March 30, 2008			April 1, 2007		March 30, 2008		April 1, 2007
	(Unaudited)					(Unaudited)
Net Sales	$	38,428		$	45,647	$	121,075	$	121,610
Cost of Goods Sold		32,161			37,293		99,508		102,934
Gross Profit		6,267			8,354		21,567		18,676
Engineering, Selling &
Administrative Expenses		6,109			4,974		17,740		14,882
Income from Operations		158			3,380		3,827		3,794
Interest Income		617			879		2,344		2,706
Other Income (Expense), Net		(58	)		341		408		490
Minority Interest		(48	)		25		70		25
		669			4,625		6,649		7,015
Provision for Income Taxes		223			1,711		2,461		2,266
Net Income	$	446		$	2,914	$	4,188	$	4,749
Earnings Per Share:
Basic	$	0.13		$	0.82	$	1.20	$	1.33
Diluted	$	0.13		$	0.82	$	1.19	$	1.33
Average Basic
Shares Outstanding		3,476			3,537		3,500		3,558
Average Diluted
Shares Outstanding		3,482			3,541		3,506		3,561
Other
Capital Expenditures	$	4,013		$	1,353	$	8,487	$	3,645
Depreciation & Amortization	$	1,665		$	1,699	$	5,161	$	5,216

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STRATTEC SECURITY CORPORATION

Condensed Balance Sheet Data

(In Thousands)

	March 30, 2008		July 1, 2007
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	59,130	$	65,491
Receivables, net		20,892		26,890
Inventories		10,044		7,166
Other current assets		14,690		13,017
Total Current Assets		104,756		112,564
Deferred Income Taxes		1,890		2,117
Investment in Joint Ventures		3,456		2,813
Prepaid Pension Cost		7,730		4,385
Other Long Term Assets		31		41
Property, Plant and Equipment, Net		29,849		26,526
	$	147,712	$	148,446

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable	$	16,121		$	16,575
Other		16,489			14,906
Total Current Liabilities		32,610			31,481
Borrowings Under Line of Credit Facility		-			-
Accrued Pension and Postretirement Obligations		13,680			13,431
Minority Interest		813			574
Shareholders’ Equity		243,806			244,119
Accumulated Other Comprehensive Loss		(14,054	)		(14,341	)
Less:  Treasury Stock		(129,143	)		(126,818	)
Total Shareholders’ Equity		100,609			102,960
	$	147,712		$	148,446

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STRATTEC SECURITY CORPORATION

Condensed Cash Flow Statement Data

(In Thousands)

	Third Quarter Ended						Nine Months Ended
	March 30, 2008			April 1, 2007			March 30, 2008			April 1, 2007
	(Unaudited)						(Unaudited)
Cash Flows from Operating Activities:
Net Income	$	446		$	2,914		$	4,188		$	4,749
Adjustment to Reconcile Net Income to
Cash Used in Operating Activities:
Minority Interest		37			(25	)		(111	)		(25	)
Depreciation and Amortization		1,665			1,699			5,161			5,216
Stock Based Compensation Expense		124			187			616			566
Tax Benefit from Options Exercised		-			13			-			13
Change in Operating Assets/Liabilities		1,802			(7,280	)		(1,598	)		(6,294	)
Other, net		(15	)		(177	)		(357	)		(45	)
Net Cash Provided (Used) by Operating Activities		4,059			(2,669	)		7,899			4,180
Cash Flows from Investing Activities:
Investment in Joint Ventures		-			-			-			(100	)
Additions to Property, Plant and Equipment		(4,013	)		(1,353	)		(8,487	)		(3,645	)
Proceeds from Sale of Property, Plant
and Equipment		-			-			-			21
Net Cash Used in Investing Activities		(4,013	)		(1,353	)		(8,487	)		(3,724	)
Cash Flow from Financing Activities:
Purchase of Common Stock		(1,188	)		-			(2,334	)		(3,922	)
Dividends Paid		(528	)		-			(4,609	)		-
Contribution from Minority Interest		-			274			349			274
Loan from Minority Interest		550			-			800			-
Reissue/Exercise of Stock Options		8			82			21			99
Net Cash Provided (Used) by Financing Activities		(1,158	)		356			(5,773	)		(3,549	)
Net Decrease in Cash & Cash Equivalents		(1,112	)		(3,666	)		(6,361	)		(3,093	)
Cash and Cash Equivalents:
Beginning of Period		60,242			66,285			65,491			65,712
End of Period	$	59,130		$	62,619		$	59,130		$	62,619

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