Standard Motor Products, Inc. · NYSE:SMP

Standard Motor Products — Investor Presentation (November 2005)

13 slides from Standard Motor Products's investor presentation, November 2005

  1. Slide 1: Standard Motor Products, Inc.

    Standard Motor Products, Inc.

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements You should be aware that except for historical information, the matters discussed herein are forward-looking statements within the meaning of the private securities litigation reform act, as amended. Forward-looking statements, including projections and anticipated levels

  3. Slide 3: Presenters: Lawrence I. Sills and James J. Burke

    Lawrence I. Sills Chairman & Chief Executive Officer James J. Burke Vice President & Chief Financial Officer

  4. Slide 4: SMP Strategy and Opportunity

    SMP Strategy and Opportunity  Attractive industry fundamentals  Large end markets with stable demand  Favorable vehicle demographics  Market leadership in attractive segments  Leading share in Engine Management and Temperature Control  Excellent, long term customer relationships  Focused busi

  5. Slide 5: SMP Strategy: Two Major Product Lines

    SMP Strategy Two Major Product Lines Engine Management Temperature Control Number One in Each

  6. Slide 6: 2004 Net Sales by Market Channel

    2004 Net Sales by Market Channel ($ in Millions) OES 8% $63.4 Retail Aftermarket Traditional 29% Aftermarket $241.6 54% $443.5 Spec Mkts/ Export 9% $75.8 Total Sales $824.3

  7. Slide 7: DEM Acquisition Synergies

    DEM Acquisition Synergies Exact fit with SMP Engine Management business minimizes integration risk. • Same product lines • Same distribution strategy • 75 years of direct competition • Significant rationalization opportunities across combined operations

  8. Slide 8: DEM Integration Goals

    DEM Integration Goals • Our Goals – Maintain Customer Base – Physical Moves – Achieve Synergies

  9. Slide 9: DEM Planned Savings

    DEM Planned Savings DANA Engine Management Savings ($ in Millions) 2005 2005 2006 Plan Fcst Fcst Headcount Reductions Heads (320 hrly, 260 Slry) 580 450 450 Headcount Savings $ 28 $ 24 $ 24 Material Cost Savings 8 5 8 Facility Savings 5 5 5 MIS Savings 6 6 6 Other Savings 8 - 3-7 Total Savings $ 55

  10. Slide 10: Eng. Mgmt 9 Mo. Margin Analysis

    Eng. Mgmt 9 Mo. Margin Analysis ($ in Millions) Gross Margin 9 mo. Sept. 2004 $ 115.4 27.3% Impact of Selling Price Changes (10.5) -2.5% Sales Deductions (24.2% to 25.1%) (3.3) -0.7% Gross Margin - Non-recurring Items (7.2) -1.7% Inventory Obsolescence (1.6) -0.3% Product Mix (6.7) -1.6% Sub-Total (

  11. Slide 11: 2006 Eng. Mgmt. Gross Margin Opportunities

    2006 Eng. Mgmt. Gross Margin Opportunities ($ in Millions) Impact of Selling Price Changes $ 13.0 Operational Improvements: Resale Purchasing 2.0 Make vs Buy Savings 7.1 2005 Non-recurring charges 7.2 16.3 Less Estimated Cost Increases (11.0) Net Gross Margin Improvement Goal $ 18.3

  12. Slide 12: Engine Management Inventory Analysis

    Engine Management Inventory Analysis Inventory in ($millions) FCST GOAL Dec Dec Dec Dec Dec 2002 2003 2004 2005 2006 Eng Mgt Inventory (net) $ 67.2 $ 150.9 $ 159.6 $ 155.0 $ 142.0 Change in Inv per year $ - $ 83.7 $ 8.7 $ (4.6) $ (13.0) Inventory Turns 3.1 2.0 2.7 2.8 3.0 Note: June 2003 DEM acquisi

  13. Slide 13: Standard Motor Products, Inc.

    Standard Motor Products, Inc.

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