Standard Motor Products (SMP) 8-K Second Quarter 2010 Results and a Quarterly Dividend

For Immediate Release

For more information, contact:

James J. Burke

Standard Motor Products, Inc.

(718) 392-0200

Jennifer Tio

Maximum Marketing Services, Inc.

(312) 226-4111 x2449

Jennifer.tio@maxmarketing.com

Standard Motor Products, Inc. Announces

Second Quarter 2010 Results and a Quarterly Dividend

New York, NY, August 2, 2010......Standard Motor Products, Inc. (NYSE: SMP), an automotive replacement parts manufacturer and distributor, reported today its consolidated financial results for the three months and six months ended June 30, 2010.

Consolidated net sales for the second quarter of 2010 were $231 million, compared to consolidated net sales of $197.5 million during the comparable quarter in 2009.  Earnings from continuing operations for the second quarter of 2010 were $8.1 million or 35 cents per diluted share, compared to $5.6 million or 30 cents per diluted share in the second quarter of 2009. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the second quarter of 2010 were $8.7 million or 38 cents, compared to $5.2 million or 27 cents per diluted share in the second quarter of 2009.

Consolidated net sales for the six month period ended June 30, 2010 were $410.4 million, compared to consolidated net sales of $369.7 million during the comparable period in 2009.  Earnings from continuing operations for the six month period ended June 30, 2010 were $10.9 million or 48 cents per diluted share, compared to $6.4 million or 34 cents per diluted share in the comparable period of 2009.  Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the six months ended 2010 and 2009 were $11.8 million or 52 cents per diluted share and $6.5 million or 35 cents per diluted share, respectively.

37-18 Northern Blvd., Long Island City, NY  11101

(718) 392-0200

www.smpcorp.com

Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We are pleased with our results for the second quarter and for the first six months of the year. 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.

“Engine Management sales were 24% ahead for the quarter and 17% for the half. We attribute this to a combination of factors – solid growth for the entire aftermarket (which apparently is continuing into the third quarter), new business from the acquisition of Federal Mogul’s wire line, inventory increases on the part of several customers as they return to more normalized stocking levels, and an increase in OE/OES volume from last year’s depressed levels.

“Temperature Control sales are benefiting from one of the hottest summers in recent years, and full year volume from two large accounts gained in 2009.

“One element we are not yet satisfied with is our Engine Management gross margin, which is running slightly below 2009. However, we anticipate improvement in the second half, as our price increases are now fully implemented, and we continue our cost reduction initiatives.

“We were very successful deleveraging our balance sheet in 2009. 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.”

The Board of Directors has approved payment of a quarterly dividend of five cents per share on the common stock outstanding. The dividend will be paid on September 1, 2010 to stockholders of record on August 13, 2010.

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Monday, August 2, 2010.  The dial in number is 800-895-0198 (domestic) or 785-424-1053 (international). The playback number is 800-839-4577 (domestic) or 402-220-2682 (international). The conference ID # is STANDARD.

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management’s expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company’s filings with the Securities and Exchange Commission, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q.  By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.

###

STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2010			2009		��	2010			2009
	(Unaudited)						(Unaudited)
NET SALES	$	231,048		$	197,498		$	410,399		$	369,720
COST OF SALES		172,659			151,092			308,192			282,421
GROSS PROFIT		58,389			46,406			102,207			87,299
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		41,803			36,813			78,468			72,832
RESTRUCTURING AND INTEGRATION EXPENSES		1,289			1,210			2,042			2,373
OPERATING INCOME		15,297			8,383			21,697			12,094
OTHER INCOME, NET		298			3,422			696			3,527
INTEREST EXPENSE		2,002			2,325			3,866			4,802
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES		13,593			9,480			18,527			10,819
INCOME TAX EXPENSE		5,532			3,842			7,599			4,394
EARNINGS FROM CONTINUING OPERATIONS		8,061			5,638			10,928			6,425
DISCONTINUED OPERATION, NET OF TAX		(372	)		(322	)		(868	)		(582	)
NET EARNINGS	$	7,689		$	5,316		$	10,060		$	5,843
NET EARNINGS PER COMMON SHARE:
BASIC EARNINGS FROM CONTINUING OPERATIONS	$	0.36		$	0.30		$	0.49		$	0.34
DISCONTINUED OPERATION		(0.02	)		(0.02	)		(0.04	)		(0.03	)
NET EARNINGS PER COMMON SHARE - BASIC	$	0.34		$	0.28		$	0.45		$	0.31
DILUTED EARNINGS FROM CONTINUING OPERATIONS	$	0.35		$	0.30		$	0.48		$	0.34
DISCONTINUED OPERATION		(0.01	)		(0.02	)		(0.03	)		(0.03	)
NET EARNINGS PER COMMON SHARE - DILUTED	$	0.34		$	0.28		$	0.45		$	0.31
WEIGHTED AVERAGE NUMBER OF COMMON SHARES		22,570,886			18,814,723			22,493,031			18,705,997
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES		23,529,898			20,014,439			22,584,666			18,720,479

STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts)
		THREE MONTHS ENDED						SIX MONTHS ENDED
		June 30,						June 30,
		2010			2009			2010			2009
	(Unaudited)							(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS
GAAP EARNINGS FROM CONTINUING OPERATIONS		$	8,061		$	5,638			10,928			6,425
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)			774			1,122			1,226			1,829
LOSS FROM EUROPE DIVESTITURE (NET OF TAX)			-			-			47			-
GAIN FROM SALE OF PREFERRED STOCK INVESTMENT (NET OF TAX)			-			(1,402	)		-			(1,402	)
GAIN FROM SALE OF BUILDINGS (NET OF TAX)			(125	)		(157	)		(398	)		(315	)
GAIN FROM DEBENTURE REPURCHASE (NET OF TAX)			-			(24	)		-			(24	)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS		$	8,710		$	5,177		$	11,803		$	6,513
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS		$	0.35		$	0.30		$	0.48		$	0.34
RESTRUCTURING AND INTEGRATION EXPENSES (NET OF TAX)			0.04			0.05			0.06			0.10
LOSS FROM EUROPE DIVESTITURE (NET OF TAX)			-			-			-			-
GAIN FROM SALE OF PREFERRED STOCK INVESTMENT (NET OF TAX)			-			(0.07	)		-			(0.07	)
GAIN FROM SALE OF BUILDINGS (NET OF TAX)			(0.01	)		(0.01	)		(0.02	)		(0.02	)
GAIN FROM DEBENTURE REPURCHASE (NET OF TAX)			-			-			-			-
NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS		$	0.38		$	0.27		$	0.52		$	0.35
MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS AND DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS BEFORE SPECIAL
ITEMS, WHICH ARE NON-GAAP MEASUREMENTS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING
OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL
OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.

STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Balance Sheets
(In thousands)
	June 30,		December 31,
	2010		2009
	(Unaudited)
ASSETS
CASH	$	14,717	$	10,618
ACCOUNTS RECEIVABLE, GROSS		182,056		131,785
ALLOWANCE FOR DOUBTFUL ACCOUNTS		8,518		6,962
ACCOUNTS RECEIVABLE, NET		173,538		124,823
INVENTORIES		218,138		199,752
ASSETS HELD FOR SALE		433		1,405
OTHER CURRENT ASSETS		26,828		27,616
TOTAL CURRENT ASSETS		433,654		364,214
PROPERTY, PLANT AND EQUIPMENT, NET		61,776		61,478
GOODWILL AND OTHER INTANGIBLES		13,541		13,805
OTHER ASSETS		41,195		44,962
TOTAL ASSETS	$	550,166	$	484,459
LIABILITIES AND STOCKHOLDERS' EQUITY
NOTES PAYABLE	$	69,795	$	58,430
CURRENT PORTION OF LONG TERM DEBT		17,450		67
ACCOUNTS PAYABLE TRADE		85,364		54,381
ACCRUED CUSTOMER RETURNS		34,612		20,442
OTHER CURRENT LIABILITIES		74,020		71,303
TOTAL CURRENT LIABILITIES		281,241		204,623
LONG-TERM DEBT		284		17,908
ACCRUED ASBESTOS LIABILITY		24,135		24,874
OTHER LIABILITIES		43,234		43,176
TOTAL LIABILITIES		348,894		290,581
TOTAL STOCKHOLDERS' EQUITY		201,272		193,878
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	550,166	$	484,459

STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Profit
(In thousands)
	THREE MONTHS ENDED										SIX MONTHS ENDED
	June 30,										June 30,
	2010					2009					2010					2009
	(unaudited)										(unaudited)
Revenues
Engine Management	$	152,815				$	122,986				$	289,912				$	247,299
Temperature Control		73,926					65,661					113,941					105,921
Europe		-					7,325					-					14,046
All Other		4,307					1,526					6,546					2,454
	$	231,048				$	197,498				$	410,399				$	369,720
Gross Margin
Engine Management	$	37,488		24.5	%	$	31,077		25.3	%	$	70,622		24.4	%	$	61,603		24.9	%
Temperature Control		17,707		24.0	%		11,462		17.5	%		25,960		22.8	%		17,708		16.7	%
Europe		-					1,871		25.5	%		-					3,698		26.3	%
All Other		3,194					1,996					5,625					4,290
	$	58,389		25.3	%	$	46,406		23.5	%	$	102,207		24.9	%	$	87,299		23.6	%
Selling, General & Administrative
Engine Management	$	26,284		17.2	%	$	22,106		18.0	%	$	49,437		17.1	%	$	44,107		17.8	%
Temperature Control		10,002		13.5	%		8,443		12.9	%		17,910		15.7	%		15,827		14.9	%
Europe		-					1,749		23.9	%		-					3,332		23.7	%
All Other		5,517					4,515					11,121					9,566
		41,803		18.1	%		36,813		18.6	%		78,468		19.1	%		72,832		19.7	%
Restructuring & Integration		1,289		0.6	%		1,210		0.7	%		2,042		0.5	%		2,373		0.6	%
	$	43,092		18.7	%	$	38,023		19.3	%	$	80,510		19.6	%	$	75,205		20.3	%
Operating Profit
Engine Management	$	11,205		7.3	%	$	8,972		7.3	%	$	21,185		7.3	%	$	17,495		7.1	%
Temperature Control		7,705		10.4	%		3,019		4.6	%		8,050		7.1	%		1,881		1.8	%
Europe		-					122		1.7	%		-					366		2.6	%
All Other		(2,324	)				(2,520	)				(5,496	)				(5,275	)
		16,586		7.2	%		9,593		4.9	%		23,739		5.8	%		14,467		3.9	%
Restructuring & Integration		1,289		0.6	%		1,210		0.7	%		2,042		0.5	%		2,373		0.6	%
	$	15,297		6.6	%	$	8,383		4.2	%	$	21,697		5.3	%	$	12,094		3.3	%