STANDARD MOTOR PRODUCTS, INC. ANNOUNCES
FIRST QUARTER 2004 RESULTS AND A QUARTERLY DIVIDEND
New York, NY, April 26, 2004......Standard Motor Products, Inc. (NYSE:SMP), an automotive replacement parts manufacturer and distributor, reported today its financial results for the three months ended March 31, 2004.
Consolidated net sales for the first quarter of 2004 were $204.8 million, compared to consolidated net sales of $135.7 million during the comparable quarter in 2003. Losses from continuing operations for the first quarter of 2004 were $545,000 or 3 cents per diluted share, compared to $607,000 or 5 cents per diluted share in the first quarter of 2003.
Mr. Lawrence Sills, Standard Motor Products’ Chief Executive Officer, commented that “The net sales increase in the first quarter of 2004 was primarily related to the previously announced acquisition of Dana Corporation’s Engine Management Division (DEM), effective as of June 30, 2003. Net sales generated in the first quarter from DEM were approximately $60 million. Excluding DEM net sales, our core Engine Management net sales were up $2.9 million or 3.6% in the first quarter of 2004. In our Temperature Control business, net sales were ahead of last year’s comparable quarter by $5.4 million or 11.9%.”
“Gross margins were down slightly at 24.9% in the first quarter of 2004 compared to 25.4% in the first quarter of 2003, primarily due to the DEM transition. However, we were able to recover the gross margin slippage with a percentage reduction in selling, general and administrative expenses, an indication that economies from the Dana integration are beginning to be felt. The net result was that operating income, excluding restructuring expenses, increased $1.1 million in the first quarter of 2004.”
Mr. Sills added, “We continue to make very good progress with our DEM integration. At this point, all planned moves for manufacturing facilities are expected to be completed by the end of the second quarter of 2004. Distribution and administrative facility moves are in varying stages and are expected to be complete by the early part of the third quarter of 2004.”
Mr. Sills concluded, “As previously stated, we believe the DEM integration will enable us to generate incremental profits throughout 2004 and an ongoing $40-45 million operating income from the acquisition beginning in 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 June 1, 2004 to stockholders of record on May 14, 2004.
Standard Motor Products will hold a conference call at 11:00 AM Eastern Time, on Monday, April 26, 2004. The dial in number is 800-362-0571 and the ID number is STANDARD. A replay of the call will be available on April 26 through May 3 at 12:00 midnight. The playback number is 800-388-9074 (toll free) and the international number is 402-220-1117.
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.