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Published byAbel Osborne Modified over 8 years ago
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Standard Motor Products, Inc. 2008 Annual Automotive Aftermarket Symposium, November 3rd – 5th
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Larry Sills – Chairman & CEO Jim Burke – VP Finance & CFO
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Forward Looking Statements You should be aware that except for historical information, the matters discussed herein are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ materially from those discussed herein. You are urged to review our filings with the SEC and our press releases from time to time for details of these risks and uncertainties.
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Jim Burke Vice President and Chief Financial Officer
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September YTD Income Statement Non – GAAP Engine Management division sales are up 2.8% over prior year driven by growth in our OE/OES business Temperature Control division sales down 5.5% driven by pricing Gross margins improving from first half of the year as we ramp up production in Reynosa and put the overhang from the plant closings behind us ($ In Millions) *Excludes restructuring charges
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Engine Management Gross Margin Historical 2005 - 3Q 2008 ‘05 Dana acquisition integration ’06 - ’07 Transition complete – margins recover Q1 Puerto Rico and LIC plant closures resulting in reduced production Q2 duplicate cost from Puerto Rico and LIC overhang Q3 ramp up of production in Reynosa 2009 Progress toward historical average
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Temperature Control Gross Margin Historical 2005 - 3Q 2008 ‘05 – ’07 price reductions to compete against low cost imports Q1- Q3 $6-7M price reductions for 2008 2009 Plan: Price increase 75% compressor remanufacturing in Reynosa Sell Grapevine TX. manufacturing facility
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Condensed Balance Sheet Improved free cash flow Inventory Management A/R factoring Sale of real-estate Reduced debt by $24.7M Bought back $20.6M in outstanding bonds at a discount Bought back an additional $8.5M in October Debt to total capitalization ratio of 52.8% vs. 56.1% in the prior year ($ In Millions)
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Reconciliation of GAAP and Non-GAAP Measures
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Larry Sills Chairman & Chief Executive Officer
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Macro trends in the Aftermarket New car sales down more older cars on the road Gas prices down miles driven should increase Commodity prices down Car leasing down Car dealerships closing
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Strategic Initiatives Increase OE/OES Business Plant Rationalization Globalization: Global Sourcing
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Increase OE/OES Business 200620072008 Estimate $63 $80 $100 All figures in millions of dollars 2010 Goal $160
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Strategic Initiatives – OE/OES
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Plant Rationalization 200520072008 Estimate 16% 29% 41% % production labor hours in low cost facilities 2010 Goal 57%
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Globalization: Global Sourcing 200520072008 Estimate 38% 42% 45% % purchased from low cost suppliers 2010 Goal 50%
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Standard Motor Products Low Cost Supplier Highly Diversified Customer Base Well Positioned for the Future
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