Standard Motor Products Inc.
) announced the acquisition of all the assets of Pensacola,
Fla.-based Pensacola Fuel Injection, barring the retail segment,
which will be retained by the current owners of the company. The
deal worth $12.2 million is expected to boost Standard Motor's
earnings, excluding one-time integration costs, from the first
Pensacola Fuel Injection is a privately-held company that
remanufactures and distributes diesel injectors, diesel pumps and
turbo chargers. Standard Motor used to procure these products
from the company earlier.
The acquisition will, therefore, reduce Standard Motor's raw
materials costs while expanding its product portfolio. The
company expects the expanded portfolio to be beneficial as the
requirement for diesel equipped light vehicles is projected to
rise in North America. The growth will likely be fueled by the
increasing demand for cars with better fuel mileage.
The automotive replacement parts manufacturing and
distributing company reported an 8.2% rise in adjusted earnings
per share to 79 cents in the third quarter of 2013 from 73 cents
in the year-ago quarter. Earnings per share surpassed the Zacks
Consensus Estimate of 76 cents. Profits went up 8.9% to $18.3
million from $16.8 million in the year-ago quarter.
Total revenue declined 4.3% to $264.2 million, missing the
Zacks Consensus Estimate of $279 million. The decline was
attributable to lower revenues from Temperature Control and All
Other segments, partially offset by better performance in the
Engine Management segment.
Standard Motor currently carries a Zacks Rank #3 (Hold). Some
better-ranked companies in the same industry include
Genuine Parts Company
Motorcar Parts of America Inc.
). MPAA sports a Zacks Rank #1 (Strong Buy), while GPC and LKQ
carry a Zacks Rank #2 (Buy).
GENUINE PARTS (GPC): Free Stock Analysis
LKQ CORP (LKQ): Free Stock Analysis Report
MOTORCAR PARTS (MPAA): Free Stock Analysis
STANDARD MOTOR (SMP): Free Stock Analysis
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