Standard Motor falls 19% after slipping to Q2 loss

Standard Motor Products Inc. (NYSE:SMP) has shed nearly 19% today after reporting ahead of the opening it had slipped to a second-quarter loss. Net loss for the quarter ended June 30 was $1.1 million, or $0.06 per share, compared with net income of $5.4 million, or $0.28 a share, for the same period a year earlier. Sales dipped to $215.3 million from $217 million. Analysts were expecting earnings per share of $0.27 on revenues of $220.2 million.

“The primary negative factor in the second quarter was the drop in Engine Management gross margin, which fell from $37.1 million or 26.9% in 2007 to $30 million or 21.7% in 2008. This was almost entirely attributable to the closing of Long Island City and Puerto Rico operations and the move to Reynosa, Mexico. During the quarter we continued to incur costs in Long Island City and Puerto Rico, with minimal productive hours, while Reynosa was just beginning to ramp up,” said Lawrence I. Sills, chairman and CEO, in a statement.

At 9:54 a.m. ET, shares of the Long Island City, N.Y.-based company are at $7.46, down $1.73 from Friday’s close. Shares have ranged from $5.76 to $12.47 during the past year.
For detailed price information and recent news stories about Standard Motor Products Inc., click SMP.

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