Standard Motor Products releases financial results
Standard Motor Products Inc. has released its consolidated financial results for the three months and for the year ended Dec. 31, 2014.
Consolidated net sales for the fourth quarter of 2014 were $218.1 million, compared to consolidated net sales of $218.7 million during the comparable quarter in 2013. Earnings from continuing operations for the fourth quarter of 2014 were $11.5 million, compared to $9.4 million in the fourth quarter of 2013. Excluding non-operational gains and losses, earnings from continuing operations for the fourth quarter of 2014 were $11.4 million, compared to $9.7 million in the fourth quarter of 2013.
Consolidated net sales for 2014 were $980.4 million, compared to consolidated net sales of $983.7 million in 2013. Earnings from continuing operations for 2014 were $52.9 million compared to $53 million in 2013. Excluding non-operational gains and losses, earnings from continuing operations for 2014 and 2013 were $58.7 million and $54.1 million, respectively.
Lawrence Sills, Standard Motor Products’ chairman and CEO, said, “We are pleased with our fourth quarter results. To begin with, our sales equaled a very strong quarter from a year ago. Engine management, for example, had a 14% increase in the fourth quarter of 2013, above our normal growth pattern, and we matched the same sales figure this year. At the same time, we had improvements in gross margin and operating profit, leading to a 16.7% increase in diluted earnings per share, excluding special items, for the quarter, from 42 cents to 49 cents.
“For the full year, despite disappointing sales, we achieved an 8.6% increase in diluted earnings per share, excluding special items. Sales were slightly below 2013, and below our forecast of low to mid-single digit annual growth. A major contributing factor was the second cool summer in a row, which led to lower temperature control volume. However, as a result of continued improvement in manufacturing, purchasing, and expense control, our diluted earnings per share, excluding special items, increased from $2.32 to $2.52, which is an all-time record for our company.
“We made three acquisitions early in 2014 — Pensacola Fuel Injectors, a rebuilder of diesel fuel injectors; Annex Manufacturing, an importer and distributor of temperature control products; and the creation of a 50/50 joint venture with Gwo Yng, a leading Chinese manufacturer of temperature control products. All three are now fully integrated into our company, and we look forward to achieving additional benefits in 2015.
“Several weeks ago, we announced the appointment of Eric Sills as president of the company. His previous position was vice president global operations, where he was responsible for all manufacturing, distribution, engineering, and supply chain management, both in the U.S. and worldwide. We are confident that Eric’s skill, experience, and knowledge of the industry makes him an ideal candidate to help lead the company into the future.
The board of directors has authorized the purchase of up to an additional $10 million of its common stock under a stock repurchase program. This increase is in addition to the completed $10 million repurchase program authorized by the board in February 2014. Stock will be purchased from time to time, in the open market or through private transactions, as market conditions warrant. The company intends to fund the stock repurchase program through its revolving credit facility.