Standard Motor Products Inc. (SMP) reported adjusted earnings of $7.1 million or 31 cents per share from continuing operations for the first quarter of 2011, more than doubling the earnings of $3.1 million or 14 cents per share in the first quarter of 2010. Earnings per share also substantially exceeded the Zacks Consensus Estimate of 13 cents.
The adjusted figures for the 2011 quarter excluded a gain of $157,000 or 1 cent per share from the sale of buildings along with expenses of $206,000 or 1 cent per share related to restructuring and integration.
However, the 2010 quarter excluded a gain of $273,000 or 1 cent per share from the sales of buildings, a loss of $47,000 due to divestiture in Europe and restructuring and integration expenses worth $452,000 or 2 cents per share.
The company saw significant improvements in the first quarter owing to its successful cost control initiatives and strong demand for products from all channels of distribution.
Consolidated net sales in the quarter grew 22.7% to $220.2 million from $179.4 million in the corresponding quarter of 2010. It was higher than the Zacks Consensus Estimate of $187 million. Much of the progress was attributed to the strong performance exhibited by the Temperature Control business leading to an increase in customer inventories and pre-season ordering.
The company had a gross profit of $53.2 million (24.1%) compared with a gross profit of $43.8 million (24.4%) in the comparable quarter of 2010. The improvement was driven by the company’s efficient cost management and an overall healthy market condition.
Revenues from the Temperature Control segment amounted to $54.1 million, up 35.2% from last year’s $40 million. Gross profit from the segment totaled $10.3 million, up 24.1% year over year.
On the other hand, revenues in the Engine Management segment escalated 19.8% to $164.2 million. Gross profit in the segment also climbed up 20.8% to $40 million (24.4%) from $33.1 million (24.2%) in the first quarter of 2010.
Standard Motor recently acquired the Engine Controls Business of BLD Products Ltd., a subsidiary of Qualitor Inc. in order to strengthen its Engine Management product line by utilizing BLD Products’ wide product portfolio and broad customer base.
Standard Motor’s cash balance improved slightly to $13.6 million as of March 31, 2011 from $12.1 million as of December 31, 2010. Total debt was reported at $296.4 million as of March 31, 2011 versus $319.4 million as of December 31, 2010.
The Board of Directors also announced to pay a quarterly dividend of 7 cents on June 01, 2011 to its stockholders of record on May 16, 2011.
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