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

November 04, 2010 | About:
10qk

10qk

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Standard Motor Products Inc. (SMP) filed Quarterly Report for the period ended 2010-09-30.

Standard Motor Products Inc. has a market cap of $277.6 million; its shares were traded at around $12.37 with a P/E ratio of 13.8 and P/S ratio of 0.3. The dividend yield of Standard Motor Products Inc. stocks is 1.6%.SMP is in the portfolios of Mario Gabelli of GAMCO Investors, Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Sales. Consolidated net sales for the three months ended September 30, 2010 were $227.5 million, an increase of $21.9 million, or 10.7%, compared to $205.6 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 $7.2 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 $5.2 million to $42 million or 18.5% of consolidated net sales, in the third quarter of 2010, as compared to $36.8 million, or 17.9% of consolidated net sales in the third quarter of 2009. The increase in SG&A expenses is due primarily to sales volume related increases in selling, marketing and distribution expenses. Expenses related to the sale of receivables, which are included in SG&A, were $1.8 million in the third quarter of 2010 compared to $0.9 million in the same period of last year.

Loss from discontinued operation. Loss from discontinued operations, net of income tax, reflects adjustments made to our indemnity liability in line with information contained in actuarial studies obtained in August 2010 and 2009 and other information available and considered by us, and legal expenses incurred associated with our asbestos-related liability. During the third quarters of 2010 and 2009, we recorded a loss of $1.4 million and $1.6 million from discontinued operations, respectively. The loss from discontinued operations for the third quarter of 2010 and 2009 reflects a $1.8 million and $2.2 million pre-tax adjustment, respectively, to increase our indemnity liability in line with the August 2010 and 2009 actuarial studies, as well as legal fees incurred in litigation. As discussed more fully in Note 13 in the notes to our consolidated financial statements, we are responsible for certain future liabilities relating to alleged exposure to asbestos containing products.

Sales. Consolidated net sales for the nine months ended September 30, 2010 were $637.9 million, an increase of $62.6 million, or 10.9%, compared to $575.3 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 $21.3 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 $10.9 million to $120.5 million or 18.9% of consolidated net sales, in the nine months ended September 30, 2010, as compared to $109.6 million, or 19.1% of consolidated net sales in the comparable 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 $4.8 million in the nine months ended September 30, 2010 compared to $2 million in the same period last year.

Other income, net. Other income, net decreased to $2.4 million for the nine months ended September 30, 2010 compared to $4.3 million in the same period in 2009. In 2010, other income, net included a $1.5 million gain on the sale of our Reno, Nevada distribution property, a $0.2 million gain on the sale of vacant land at one of our locations in the U.K. and $0.8 million of deferred gain related to the sale-leaseback of our Long Island City, New York property. During 2009, we redeemed our investment in the preferred stock of a third party issuer resulting in a pretax gain of $2.3 million and recognized $0.8 million of deferred gain related to the sale-leaseback of our Long Island City, New York property.

Read the The complete Report

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