STANDARD MOTOR PRODUCTS, INC. ANNOUNCES
SECOND QUARTER 2003 EARNINGS AND A QUARTERLY DIVIDEND
New York, NY, July 24, 2003......Standard Motor Products, Inc. (NYSE:SMP) an automotive replacement parts manufacturer and distributor, reported consolidated net sales for the second quarter of 2003, the three months ended June 30, 2003, of $166.1 million, compared to consolidated net sales of $180.6 million during the comparable quarter in 2002. Earnings from continuing operations for the second quarter of 2003 were $4.3 million or 34 cents per diluted share, compared to $6.3 million or 48 cents per diluted share, in the second quarter of 2002.
Consolidated net sales for the six month period ended June 30, 2003 were $301.9 million, compared to consolidated net sales of $307 million during the comparable period in 2002. Earnings from continuing operations for the six month period ended June 30, 2003 were $3.7 million, or 30 cents per diluted share, compared to $4.3 million, or 36 cents per diluted share, for the comparable period in 2002. The results for the six month period ended June 30, 2003 were negatively impacted by $0.8 million in currency exchange loss.
Mr. James Burke, Standard Motor Products, Chief Financial Officer, said, "The consolidated balance sheet reflected the previously announced acquisition of Dana Corporationís Engine Management Division (DEM), effective as of June 30, 2003. DEMís results of operations will begin to be reflected in our statement of operations for the third quarter 2003."
Commenting on the results, Mr. Lawrence Sills, Standard Motor Productsí Chief Executive Officer, said, "Though Engine Management net sales were down $6.7 million in the second quarter, they are ahead over $4 million for the year. Temperature Control net sales decreased nearly $10 million for the quarter and $13.4 million for the first half, because of the previously announced loss of sales to AutoZone and the very cool and wet weather conditions existing in spring and early summer."
Mr. Sills added, "We are pleased with the continued improvement in gross margins. We are ahead of last year by 0.4 points for the quarter and 0.6 points year to date. The improvement in the second quarter was significant, considering the reduction in net sales."
Regarding the acquisition of DEM, Mr. Sills stated, "Thus far we are proceeding on schedule. We have publicly announced that seven of the nine Dana facilities will be closed over the next 18 months and their operations merged with existing Standard Motor Products plants. We are comfortable with our original estimates of $30-35 million for restructuring and integration costs over this period and $55 million in annual savings by 2005."
The Board of Directors has approved payment of a quarterly dividend of nine cents per share on the common stock outstanding. The dividend will be paid on September 2, 2003 to stockholders of record on August 15, 2003.
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release, and detailed from time-to-time in prior press releases and in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.