Standard Motor Products 2017 Sales Up 11 Percent Over 2016
Aug. 2, 2017—Standard Motor Products reported today its consolidated financial results for the three months and six months ending June 30, 2017.
Consolidated net sales for the second quarter of 2017 were $312.7 million, compared to consolidated net sales of $289 million during the comparable quarter in 2016. Earnings from continuing operations for the second quarter of 2017 were $18.3 million, compared to $19.9 million in the second quarter of 2016.
Consolidated net sales for the six month period ended June 30, 2017, were $595.1 million, compared to consolidated net sales of $527.9 million during the comparable period in 2016, an increase of 11 percent. Earnings from continuing operations for the six month period ended June 30, 2017, were $34.6 million, compared to $32.5 million in the comparable period of 2016.
Eric P. Sills, Standard Motor Products’ CEO and president stated, “A key factor in the second quarter was the step back in engine management gross margin, from 32.1 peprcent in 2016 to 29.4 percent this year. This led to a decline in earnings in the second quarter, though we remain ahead of 2016 in both sales and earnings year-to-date. This gross margin decline is primarily the result of the previously announced plant moves. These are proceeding according to plan, and we are pleased with the progress.
“In the short run, we are incurring additional costs, including ramp-up inefficiencies, duplication of overhead, and the expenses resulting from hiring and training hundreds of new employees. This is the primary cause of the decline in gross margin."
“In all other areas, we are pleased with our results," he continued. "Sales continue to outpace 2016, up 8.2 percent for the quarter and 12.7 percent for the half. Excluding the sales from the incremental General Cable ignition wire business, acquired in May 2016, the quarter and half of 2017 are up over the previous year by 3 percent and 5.5 percent respectively.
“To conclude, while we are temporarily feeling the impact of costs associated with our strategic restructuring initiatives, we are confident of the benefits, and we are excited about our future We are very proud of all of our people, and we thank them for their efforts and dedication as we work through these moves.”