NEW YORK -- Standard Motor Products Inc. (SMP) has reported its consolidated financial results for the three months and six months ended June 30.

Consolidated net sales for the second quarter of 2011 were $244 million, compared to consolidated net sales of $231 million during the comparable quarter in 2010.  

Earnings from continuing operations for the second quarter of 2011 were $13.7 million or 59 cents per diluted share, compared to $8.1 million or 35 cents per diluted share in the second quarter of 2010. Excluding non-operational gains and losses, earnings from continuing operations for the second quarter of 2011 were $11.4 million or 49 cents per diluted share, compared to $8.7 million or 38 cents per diluted share in the second quarter of 2010.

Consolidated net sales for the six month period ended June 30 were $464.2 million, compared to consolidated net sales of $410.4 million during the comparable period in 2010.  Earnings from continuing operations for the six month period ended June 30, 2011 were $20.7 million or 90 cents per diluted share, compared to $10.9 million or 48 cents per diluted share in the comparable period of 2010. Excluding non-operational gains and losses, earnings from continuing operations for the six months ended 2011 and 2010 were $18.5 million or 80 cents per diluted share and $11.8 million or 52 cents per diluted share, respectively.

Commenting on the results, Lawrence Sills, Standard Motor Products' chairman and CEO, stated, "As we forecasted during our first quarter earnings call, our rate of sales increase moderated during the second quarter. Our first quarter increase of 23 percent benefited from a pre-season ordering program in Temperature Control, plus some buildup in customer inventories in other areas. As these inventories were absorbed, our sales increase in the second quarter moderated to 5.6 percent, leaving us with a still healthy 13 percent sales increase for the six month period.

"We continue to reap the benefit of our cost-reduction efforts of recent years — moving to low-cost manufacturing sites, purchasing product from low-cost areas, reducing overhead and manufacturing products we formerly purchased. As a result, our earnings per share, excluding one-time gains, increased to 49 cents for the quarter and 80 cents for the six month period, substantially ahead of the comparable periods last year.

"Cash flow remains strong. Despite the acquisition of the BLD Engine Control business ($27 million), and the redemption of the remaining convertible debentures ($12.3 million), both of which occurred in the second quarter, our bank borrowings were $2 million below the comparable period of 2010.

"Finally, during the second quarter, we announced that we will be terminating our retiree medical benefits program at the end of 2016,” Sills said. “This was a difficult and painful decision, but we felt we had no choice as these costs continue to grow. The approximately $23 million post-retirement liability at December 2010 has been reduced to approximately $7 million at June 2011 and by 2016 will be reduced below $1 million. Our 2011 second quarter and year-to-date results reflect a one-time curtailment gain of $3.6 million. Excluding the curtailment gain, our post-retirement expense is forecasted to be a benefit of $3.7 million in 2011, decreasing to approximately a $1 million to $2 million benefit per year, through 2014. In 2015 and 2016, the amortized post-retirement expense is forecast to be unfavorable $1 million to $2 million and then be virtually eliminated."

Additionally, 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 Sept. 1 to stockholders of record on Aug. 15.