EVANSVILLE, Ind. — United Components Inc. (UCI) has announced results for the fourth quarter ended Dec. 31, 2008. Revenue of $203.7 million was down $36.9 million, or 15.3 percent, compared to the year-ago quarter. The company reported that revenue was down in all channels, most significantly in the OEM and original equipment service (new car dealer) channels.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI’s continuing operations, as adjusted consistent with the company’s historical presentations, was $16.9 million for the fourth quarter, compared with $39.3 million for the year-ago
Net loss from continuing operations for the quarter was $5.3 million, including $5.3 million, net of tax, in special charges, consisting of costs related to obtaining new business, integration of our water pump operations, trademark impairment, a one-time warranty expense, defending class action litigation, establishing new facilities in China and reduction in force. Excluding these charges, adjusted net income from continuing operations would have been $0 for the quarter. Adjusted net income from continuing operations for the fourth quarter of 2007 was $14.6 million, excluding $2.1 million, net of tax, in special charges, consisting of costs related to the integration of our water pump operations, facilities consolidation expenses, establishing new facilities in China, obtaining new business and resolving disputed non-trade receivables.
“The severe economic downturn continued in the fourth quarter, again impacting both our revenue and our operating performance,” said Bruce Zorich, chief executive officer of UCI. “Consumer spending declined significantly which, for our industry, means fewer miles driven and reduced part replacement, as well as delay of routine maintenance.”
“In this difficult economy, we have worked aggressively on our cost structure, which has enabled us to effectively compete and serve our customers in this environment,” continued Zorich. “We have seen our work pay off in performance improvement through the first two months of 2009 and we have seen signs of a return in consumer demand, particularly in the retail channel. We believe we are well positioned to capitalize on growth opportunities as the economy stabilizes.”
As of Dec. 31, 2008, the company’s debt stood at $443.6 million. The company ended the quarter with $46.6 million in cash.
