Profile: Standard Motor Products, Inc. (SMP)

Standard Motor Products, Inc. (Standard Motor Products) is an independent manufacturer, distributor and marketer of replacement parts for motor vehicles in the automotive aftermarket industry. The Company operates in two segments: Engine Management Segment, which manufactures ignition and emission parts, ignition wires, battery cables and fuel system parts and Temperature Control Segment, which manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories, and windshield washer system parts. Standard Motor Products also sells its products in Europe through its European Segment. The Company distributes parts under its own brand names, such as Standard, ACi, BWD, Hayden and Four Seasons, and through private labels, such as CARQUEST and NAPA Echlin. In November 2009, the Company sold its European distribution business.

The Company sells its products primarily to warehouse distributors, large retail chains, original equipment manufacturers and original equipment service part operations in the United States, Canada and Latin America. The Company’s customers consist of warehouse distributors, such as CARQUEST and NAPA Auto Parts, as well as auto parts retail chains, such as Advance Auto Parts, AutoZone, O’Reilly Automotive/CSK Auto, Canadian Tire and Pep Boys. Its customers also include national program distribution groups and specialty market distributors.

Engine Management Segment

The Company manufactures a range of engine management replacement parts, including distributor caps and rotors, electronic ignition control modules, voltage regulators, coils, switches, emission sensors, exhaust gas recirculation (EGR) valves and many other engine management components under the brand names Standard and BWD, and through private labels, such as CARQUEST and NAPA Echlin. In its Engine Management Segment, replacement parts for ignition and emission control systems accounted for approximately 56%, of the Company’s consolidated net sales during the year ended December 31, 2008.

Wire and cable parts accounted for approximately 12% of its consolidated net sales in 2008. These products include ignition (spark plug) wires, battery cables and a range of electrical wire, terminals, connectors and tools for servicing an automobile’s electrical system. The Company divides its electronic operations between product design and automated manufacturing operations in Orlando, Florida and assembly operations, which are performed in assembly plants in Orlando and Hong Kong.

Temperature Control Segment

Standard Motor Products manufactures, remanufactures and markets a line of replacement parts for automotive temperature control (air conditioning and heating) systems, engine cooling systems, power window accessories and windshield washer systems, primarily under its brand names of Four Seasons, Factory Air, Hayden, Imperial and ACi and through private labels, such as CARQUEST, NAPA Echlin and Murray. The product groups sold by its Temperature Control Segment are new and remanufactured compressors, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, expansion valves, heater valves, air conditioner service tools and chemicals, fan assemblies, fan clutches, engine oil coolers, transmission coolers, window lift motors and windshield washer pumps. The Company’s temperature control products accounted for approximately 25% of its consolidated net sales in 2008.

Europe Segment

The Company’s European Segment operations are conducted through its wholly owned subsidiary, Standard Motor Products (SMP) Holdings Limited located in Nottingham, England. SMP Holdings Limited manufactures and distributes a line of engine management products primarily to customers in Europe under its own brand names, which include Intermotor, Kerr Nelson, Lemark and Blue Streak and through private labels, such as Lucas. In December 2008, SMP Holdings Limited acquired the remaining ownership interest of its joint venture partner in Blue Streak Europe making its ownership interest to 100%. Blue Streak Europe supplies rebuilt engine computers for the European market. In addition, it’s European Segment remanufactures and distributes air conditioner compressors for the European market. The Company’s European Segment accounted for approximately 6%, its consolidated net sales in 2008.

The Company competes with AC Delco, Delphi Corporation, Denso Corporation, Federal-Mogul Corporation, Robert Bosch Corporation, Visteon Corporation, NGK/NTK, General Cable, Prestolite, United Components, Inc., Sanden International Inc., Proliance International, Inc. and Continental/Siemens VDO Automotive.