Standard Motor Product Inc.
) announced that its Board of Directors has approved the repurchase
of an additional $5 million of common stock under the existing
share repurchase program. The newly approved authorization is an
addition to the previously completed $5 million repurchase program
authorized by the Board of Directors on August 25, 2011.
Standard Motor will repurchase the shares periodically in the
open market or through private transaction. It will be funded by
the company's revolving credit facility.
The repurchased shares will be considered as treasury stock and
will be used for general corporate purposes including the plan for
equity compensation. However, the repurchase program can be stopped
or suspended at any point of time.
Standard Motor, based in Long Island City in New York was
founded in 1919. It is one of the leading manufacturers,
distributors and marketers of automotive replacement parts in the
U.S. Further it enjoys strong brand recognition globally.
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 of the
company in 2012. However, strong competition may ruin the company's
margins. Its competitors include
) and Denso Corp.
As a result, the company retains a Zacks #3 Rank, which
translates into a short-term (1 to 3 months) "Hold" rating and we
have a long-term (more than 6 months) "Neutral" recommendation on
STANDARD MOTOR (SMP): Free Stock Analysis
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