Standard Motor Products (NYSE:SMP) was trading up nearly 4% Monday after reporting a jump in its second-quarter income, driven primarily by better-than expected revenue hikes, particularly in its engine management division.
The New York-based company said its net income increased to $8.1 million, or 35 cents a share, compared with $5.6 million, or 30 cents a share, in the same quarter last year, and landing ahead of average analyst estimates of 24 cents, according to a Thomson Reuters poll.
Revenue for the maker of automotive replacement parts was $231 million, up from $197.5 million in the earlier-year period, and beating the Street’s view of $202.16 million.
Standard Motor CEO Lawrence I. Sills said he was “pleased” with the second quarter results.
“Sales were strong for both Engine Management and Temperature Control, and both divisions continued to benefit from cost reduction programs initiated over the past few years,” he said.
Engine Management saw a 24.5% increase in sales, which, above expectations, was attributed to aftermarket growth and new business from its acquisition of Federal Mogul’s wire line.
“While our working capital has increased in 2010 to accommodate the strong sales performance to-date, we anticipate achieving further debt reductions in the second half of this year,” Sills said.
The board approved on Monday the payment of a quarterly dividend of 5 cents a share.