Standard Motor Product Inc.
) posted a 24% decline in profits to $5.4 million or 23 cents per
share in the first quarter of 2012 from $7.1 million or 31 cents in
the corresponding quarter of last year (excluding
non-operational gains and losses in the quarters). The EPS was
lower than the Zacks Consensus Estimate of 33 cents.
Revenues in the quarter went down 4% to $211.7 million from
$220.2 million in the year-ago quarter, missing the Zacks Consensus
Estimate of $232 million. The decline in revenues was driven by
change in customers buying patterns and diversification of one of
the Temperature Control customers, who started purchasing product
directly from China.
Gross profits of the company increased 3% to $55 million from
$53 million in the year-ago quarter. Gross margins improved to 26%
from 24% in the prior year. Cost of sales decreased 6% to $157
million in the quarter. However, operating income declined to $9.7
million or 5% of sales compared to $12 million or 6% in the first
quarter of 2011.
Revenues from the Engine Management segment decreased marginally
to $163 million in the quarter from $164 million in the year-ago
quarter. Operating profit decreased to $14.0 million or 8.6% of
sales compared to $15.2 million or 9.2%. Selling, general and
administrative expenses increased to $29 million or 17.8% of sales
from $25 million or 15.1% of sales.
Revenues from Temperature Control segment went down 17% to $45
million. Operating profits from this segment were $67 thousand or
0.1% of sales compared to $1.2 million or 2.3% in the corresponding
quarter last year. Selling, general and administrative expenses
decreased 6% to $8.5 million or 18.8% of sales in the quarter.
Standard Motors had $9 million in cash as of March 31, 2012,
down from $11 million as of March 31, 2011. Long-term debt of the
company was $278 thousand as of March 31, 2012, down from $299
thousand as of March 31, 2011.
The company will be paying a quarterly dividend of 9 cents per
share on the outstanding common stock. The dividend is due on June
1, 2012 to shareholders of record as of May 15, 2012.
Standard Motor is in an advantageous position due to the recent
acquisition of Compressor Works, which is a manufacturer of
Temperature Control products with a capacity of $60 million. The
acquisition will lead to cost savings and boost earnings for
Standard Motor in 2012.
Currently, it retains a Zacks #4 Rank, which implies a Sell
rating for the short term. It competes with
STANDARD MOTOR (SMP): Free Stock Analysis
VISTEON CORP (VC): Free Stock Analysis Report
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