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Standard Motor Products Inc. Reports Operating Results (10-Q)

August 03, 2010 | About:
10qk

10qk

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Standard Motor Products Inc. (SMP) filed Quarterly Report for the period ended 2010-06-30.

Standard Motor Products Inc. has a market cap of $230.5 million; its shares were traded at around $10.13 with a P/E ratio of 13.2 and P/S ratio of 0.3. The dividend yield of Standard Motor Products Inc. stocks is 2%. Standard Motor Products Inc. had an annual average earning growth of 7.3% over the past 5 years.SMP is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Sales. Consolidated net sales for the three months ended June 30, 2010 were $231 million, an increase of $33.5 million, or 17%, compared to $197.5 million in the same period of 2009. The increase in net sales is due to higher sales in our Engine Management and Temperature Control segments, offset by a $7.3 million decrease related to the sale of our European distribution business.

Selling, general and administrative expenses. Selling, general and administrative expenses (SG&A) increased by $5 million to $41.8 million or 18.1% of consolidated net sales, in the second quarter of 2010, as compared to $36.8 million, or 18.6% of consolidated net sales in the second quarter of 2009. The increase in SG&A expenses is due primarily to an incremental increase in selling, marketing and distribution expenses as a result of higher sales volumes, partially offset by a reduction in administration expenses. Expenses related to the sale of receivables, which are included in SG&A, were $1.7 million in the second quarter of 2010 compared to $0.6 million in the same period of last year.

Sales. Consolidated net sales for the six months ended June 30, 2010 were $410.4 million, an increase of $40.7 million, or 11%, compared to $369.7 million in the same period of 2009. The increase in net sales is due to higher sales in our Engine Management and Temperature Control Segments offset by a $14 million decrease related to the sale of our European distribution business.

Selling, general and administrative expenses. Selling, general and administrative expenses (SG&A) increased by $5.7 million to $78.5 million or 19.1% of consolidated net sales, in the six months ended June 30, 2010, as compared to $72.8 million, or 19.7% of consolidated net sales in like period of 2009. The increase in SG&A expenses is due primarily to higher selling, marketing and distribution expenses as a result of the increase in sales. Expenses related to the sale of receivables, which are included in SG&A, were $2.9 million in the six months ended June 30, 2010 compared to $1 million in the same period last year.

Other income, net. Other income, net decreased to $0.7 million for the six months ended June 30, 2010 compared to $3.5 million in the same period in 2009. In 2010, other income, net included a $0.2 million gain on the sale of vacant land at one of our locations in the U.K. In the second quarter of 2009, we redeemed our investment in the preferred stock of a third party issuer resulting in a pretax gain of $2.3 million.

Interest expense. Interest expense decreased by $0.9 million to $3.9 million in the six months ended June 30, 2010, compared to $4.8 million in the same period in 2009. The decline is due primarily to lower average borrowings partially offset by higher average interest rates.

Read the The complete Report

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10qk
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