LAKE FOREST, Ill. – UCI Holdings, parent company of UCI International, has announced results for the second quarter ended June 30. Net sales of $234.6 million for the three months ended June 30 were down from $251.9 million compared to the prior year period. The company reported that net sales increased in the heavy-duty channel, with a decline in the retail, traditional and OES (new car dealer service) channels, while the OEM was flat.
Net loss for the quarter was $4.4 million, including $7.8 million, net of tax, in special charges, consisting primarily of business optimization costs, restructuring and severance costs, costs related to implementation of cost-sharing and manufacturing arrangements with FRAM Group and costs of defending class action litigation. Excluding these items, adjusted net income would have been $3.4 million for the quarter. Adjusted net income for the second quarter of 2011 was $7.9 million, excluding $2 million, net of tax, in special charges, consisting primarily of costs related to the UCI acquisition (including merger and acquisition costs and inventory step-up), restructuring and severance costs, patent and class action litigation costs, changes in the value of a swaption contract and costs of obtaining new business.
“We saw a general softness in the aftermarket in the second quarter, affecting our net sales for the period,” said Bruce Zorich, UCI CEO. “The softness in net sales was the leading factor in our lower operating results for the quarter. We are encouraged, however, that with increased miles driven and lower gas prices, the market appears to be headed for a bit of a rebound as we head into the second half of the year.”
As of June 30, the company had $66 million in cash on hand, and total debt of $698.5 million.
