NEW YORK -- Standard Motor Products (SMP) has reported consolidated financial results for the three months ending March 31.

Consolidated net sales for the first quarter of 2011 were $220.2 million, compared to consolidated net sales of $179.4 million during the comparable quarter in 2010. Earnings from continuing operations for the first quarter of 2011 were $7 million or 31 cents per diluted share, compared to $2.9 million or 13 cents per diluted share in the first quarter of 2010.

Excluding non-operational gains and losses, earnings from continuing operations for the first quarter of 2011 were $7.1 million or 31 cents per diluted share, compared to $3.1 million or 14 cents per diluted share in the first quarter of 2010.

Commenting on the results, Chairman and CEO Lawrence Sills stated, "We were pleased to see that our strong results from 2010 carried forward through the first quarter of 2011. Sales were 22 percent ahead of the prior year, and earnings per share, aided by our continued efforts in cost control, more than doubled, from 14 cents to 31 cents.

"Most of the sales increase results from strong demand for our products from all channels of distribution. We believe that some of the increase, however, can be attributed to increases in customer inventories and to pre-season ordering in our Temperature Control business. As a result, we anticipate that the rate of sales increase will moderate somewhat as the year progresses. However, the overall market conditions for our product lines appear quite healthy.

"Last week, we announced the acquisition of the Engine Controls business of BLD Products LTD., a subsidiary of Qualitor Inc. for approximately $27 million. BLD is a basic manufacturer of a range of engine management products, with sales in 2010 of approximately $18 million. Sales to Standard accounted for approximately 40 percent of the 2010 volume. With this acquisition, we will now be a basic, low-cost manufacturer in an important and growing part of the business."

Sills added that SMP plans to relocate the bulk of the manufacturing to SMP facilities in Reynosa, Mexico, and Independence, Kan.  

"Excluding these one-time move costs, we believe the business will be accretive to earnings in the first year," he said.

SMP's total debt at March 31, after reflecting the $27 million acquisition, was approximately $100 million.

"We are very comfortable with our debt to equity ratio at roughly 45 percent and still have in excess of $100 million borrowing capacity under our revolving credit facility," Sills noted.

In addition, SMP's board of directors has approved payment of a quarterly dividend of 7 cents per share on the common stock outstanding. The dividend will be paid on June 1 to stockholders of record on May 16.