EVANSVILLE, Ind. -- United Components Inc. (UCI) has announced results for the quarter ended June 30. Revenue of $217.4 million decreased $11.8 million compared to the year-ago quarter. UCI recorded a 5.2 percent decrease in sales from the second quarter of 2008, with increases in the retail and traditional channels and declines in the OEM, original equipment service and heavy duty channels.
Net income attributable to UCI for the quarter was $7.5 million, compared to $4 million for the second quarter of 2008. Both periods included special items. The 2009 quarter included $1.4 million in special items, net of tax, consisting of costs related to the consolidation and integration of operations, reductions in force, establishment of new facilities in China, defending class action litigation and obtaining new business, partially offset by the gain on the sale of a building as part of the consolidation of operations. 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. Excluding these charges, adjusted net income attributable to UCI would have been $8.9 million for the second quarter of 2009 and $9.9 million for the second quarter of 2008.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI’s continuing operations, as adjusted consistent with the company’s historical presentations, was $31.5 million for the second quarter, compared with $34.1 million for the year-ago quarter.
“The continuing weakness in the economy resulted in another quarter of slow sales in the OEM, OES and heavy duty channels, which was balanced by the beginning of an improvement in the retail and traditional channels,” said Bruce Zorich, chief executive officer of UCI. “And the key leading indicator, miles driven, has finally had a small up-tick in the last couple of months, which should begin to reverse the trend of decreased part replacement and routine maintenance as we move forward.”
“Operationally, while EBITDA was down year over year, the aggressive cost cutting initiatives we have undertaken since late last year enabled us to post sequential EBITDA growth over this year’s first quarter,” continued Zorich. “We believe that we are very well positioned to take advantage of the opportunities that will present themselves as the economy recovers.”
As of June 30, the company’s debt stood at $424.3 million. The company ended the quarter with $90.6 million in cash.