Methode Electronics Stock
About Methode Electronics
Methode Electronics, Inc. operates as a supplier of custom engineered solutions with sales, engineering and manufacturing locations in North America, Europe, the Middle East and Asia.
The company designs, engineers and produces mechatronic products for original equipment manufacturers (OEMs) utilizing its range of technologies for user interface, light-emitting diode (LED) lighting system, power distribution and sensor applications.
The company’s solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment, consumer appliance and medical devices.
The company operates through four segments, Automotive, Industrial, Interface and Medical.
The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile OEMs, either directly or through their tiered suppliers. The company’s products include integrated center consoles, hidden switches, ergonomic switches, transmission lead-frames, LED-based lighting, and sensors, which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system.
The Industrial segment manufactures external lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies, such as the company’s PowerRail solution, high-current low-voltage flexible power cabling systems and powder-coated busbars that are used in various markets and applications, including aerospace, cloud computing, commercial vehicles, industrial, military, power conversion and transportation.
The Interface segment provides various copper based transceivers and related accessories for the cloud computing hardware equipment and telecommunications broadband equipment markets, user interface solutions for the appliance, commercial food service, and point-of-sale equipment markets, and fluid-level sensors for the marine/recreational vehicle and sump pump markets.
The Medical segment is made up of the company’s medical device business, Dabir Surfaces, Inc. (Dabir Surfaces), its surface support technology focuses at pressure injury prevention. Dabir Surfaces has developed the technology for use by patients who are immobilized or otherwise at risk for pressure injuries, including patients undergoing long-duration surgical procedures.
Sales and Marketing
The majority of the company’s sales activities are directed by sales managers who are supported by field application engineers and other technical personnel who work with customers to design its products into their systems. Its products are primarily sold through its in-house sales staff. The company also utilizes independent manufacturers’ representatives with offices throughout the world. Sales are made primarily to OEMs, either directly or through their tiered suppliers, as well as to selling partners and distributors.
During the year ended May 1, 2021, shipments to General Motors Corporation (GM) and Ford Motor Company (Ford), or their tiered suppliers, represented 27.5% and 8.8%, respectively, of consolidated net sales. Its GM and Ford supply arrangements for each component part include a blanket purchase order and production releases.
The company has been granted various patents in the U.S., Europe and Asia and has additional domestic and international patent applications pending related to its products. Its existing patents expire on various dates between 2022 and 2041.
Research and Development
For the year ended May 1, 2021, the company’s research and development expenditures were $37.1 million.
Methode Electronics, Inc. was founded in 1946. The company was incorporated in 1946 as an Illinois corporation and was reincorporated in Delaware in 1966.