Standard Motor Products, Inc. · NYSE:SMP
Standard Motor Products — Investor Presentation (November 2005)
13 slides from Standard Motor Products's investor presentation, November 2005
Slide 1: Standard Motor Products, Inc.
Standard Motor Products, Inc.
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
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
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
Slide 5: SMP Strategy: Two Major Product Lines
SMP Strategy Two Major Product Lines Engine Management Temperature Control Number One in Each
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 $824.3
Slide 7: DEM Acquisition Synergies
DEM Acquisition Synergies Exact fit with SMP Engine Management business minimizes integration risk. • Same product lines • Same distribution strategy • 75 years of direct competition • Significant rationalization opportunities across combined operations
Slide 8: DEM Integration Goals
DEM Integration Goals • Our Goals – Maintain Customer Base – Physical Moves – Achieve Synergies
Slide 9: DEM Planned Savings
DEM Planned Savings DANA Engine Management Savings ($ 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
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 (
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
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
Slide 13: Standard Motor Products, Inc.
Standard Motor Products, Inc.
Standard Motor Products — Investor Presentation (November 2005) on 6ix