EVANSVILLE, IN -- United Components, Inc. (UCI) has announced results for the quarter ending March 31. The company said revenues of $245.5 million declined 4.4 percent compared to the year-ago quarter, with increases in the heavy duty and original equipment sales and service channels, which did not offset declines in the retail and traditional channels. Net income for the quarter was $2.7 million, compared to $7.5 million for the first quarter of 2004.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, as adjusted pursuant to the company's credit agreement for its senior credit facilities, was $24.6 million for the first quarter, compared with $34.1 million for the year-ago quarter.

"This was a challenging quarter, with lower sales volumes in our retail and traditional channels and higher operating costs impacting our overall performance," said Bruce Zorich, CEO of UCI. "In this environment, we are increasing our focus on revenue generation, while continuing work on our cost reduction initiatives, which we expect to provide benefits in the quarters ahead."

Despite the environment, UCI generated $15.5 million of cash in the quarter, ending the quarter with $26.8 million in cash. Since the June 20, 2003 acquisition date, UCI has used cash flow from operations to reduce debt, net of cash, from $569 to $431 million. The cash flow has come from reductions in working capital, as well as operating profits.

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