Standard Motor Products, Inc. Announces Second Quarter 2024 Results and Quarterly Dividend

Core Insights - Standard Motor Products, Inc. reported a 10.4% increase in net sales for Q2 2024, reaching $389.8 million compared to $353.1 million in Q2 2023 [1] - The company experienced a year-to-date sales growth of nearly 6% relative to 2023, with significant contributions from all segments, particularly Temperature Control, which saw a 28.2% increase [1][4] - Adjusted EBITDA margin improved to 10.1% in Q2 2024, slightly up from 10.0% in the previous year, despite ongoing cost pressures [1][5] Financial Performance - Q2 2024 earnings from continuing operations were $18.0 million or $0.81 per diluted share, compared to $18.4 million or $0.83 per diluted share in Q2 2023 [1][3] - For the six months ended June 30, 2024, consolidated net sales were $721.2 million, up from $681.1 million in the same period of 2023 [1][3] - Year-to-date earnings from continuing operations were $27.8 million or $1.25 per diluted share, down from $31.1 million or $1.40 per diluted share in the comparable period of 2023 [1][3] Segment Performance - Vehicle Control sales increased by 2.7% in Q2 2024, with year-to-date sales up 1.6% [1] - Temperature Control achieved record sales of $124.5 million in Q2 2024, a 28.2% increase from the previous year, driven by elevated temperatures across the country [1][4] - Engineered Solutions segment sales rose by 6.1% in Q2 2024, supported by strong demand from existing customers and new business wins [1][4] Strategic Initiatives - The company announced an agreement to acquire AX V Nissens III APS for approximately $388 million, expected to close by the end of 2024, which will enhance its product offerings and geographic presence [1][5] - An early retirement program was implemented to address cost pressures, anticipated to yield $10 million in annualized savings, with one-time severance costs of approximately $6 million [1][5] Shareholder Returns - The Board of Directors approved a quarterly dividend of $0.29 per share, payable on September 3, 2024 [1] - During the quarter, the company repurchased $7.8 million of common stock, leaving $19.6 million remaining under the current share repurchase authorization [1]