EVANSVILLE, Ind. -- United Components, Inc. (UCI) has announced results for the quarter ended June 30. Revenue of $229.3 million decreased $30.3 million compared to the year-ago quarter. Last year's second quarter included $12.1 million in sales resulting from the sale of inventory in connection with the termination of an inventory consignment program with a customer. Excluding those sales, UCI recorded a 7.4 percent decrease in sales for the quarter, with an increase in the heavy duty channel and declines in the retail, OEM, original equipment service and traditional channels.

Net income for the quarter was $4 million, compared to $10 million for the second quarter of 2007. Both periods included special items. The 2008 quarter included $5.9 million in special charges, net of tax, consisting of a one-time warranty expense, costs of defending class action litigation, establishment of new facilities in China and the costs of obtaining new business. The 2007 quarter included $3.2 million in special charges, net of tax, consisting of costs related to the integration of its water pump operations and the impairment of a trademark asset. Excluding these charges, adjusted net income would have been $9.9 million for the second quarter of 2008 and $13.2 million for the second quarter of 2007.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI's continuing operations, as adjusted consistent with the company's historical presentations, was $34.1 million for the second quarter, compared with $40.9 million for the year-ago quarter.

"The difficulties that our industry has been facing the last several quarters continued to affect our results this quarter," said Bruce Zorich, chief executive officer of UCI. "Energy prices continued to surge in a sagging economy, resulting in fewer miles driven and reduced part replacement and routine maintenance. On the operational side, significant increases in raw material costs also continued, adversely affecting our gross margins."

"We are pleased, however, that in this environment, the focus we have had on operational excellence has enabled us once again to post solid operating results," continued Zorich. "In addition, we are continuing to commit significant resources to our growth initiatives, both in North America and internationally, which we believe will pay dividends as the economy stabilizes."

As of June 30, the company's debt stood at $419.3 million. The company ended the quarter with $35.2 million in cash.

For more information about UCI, visit: www.ucinc.com.