Standard Motor Products Inc. ( SMP - Analyst Report ) reported earnings of $13.7 million or 59 cents per share substantially improving from $8.1 million or 35 cents per share in the second quarter of 2010.

Reported income in the quarter included a post-retirement curtailment gain of $2.19 million or 9 cents per share and another gain of $157,000 or 1 cent per share from sale of assets whereas, the last year quarter included a gain of $125,000 or 1 cent per share from sale of assets along with restructuring and integration expenses of $774,000 or 4 cents per share.

Excluding these items, adjusted earnings of the company stood at $11.4 million or 49 cents per share compared with $8.7 million or 38 cents per share in the year-ago quarter. Earnings per share also exceeded the Zacks Consensus Estimate of 45 cents per share.

Consolidated net sales in the quarter grew 5.6% to $244.0 million from $231.0 million in the corresponding quarter of 2010. Both the business segments saw modest improvements in sales. The company recently strengthened its Engine Management product line by utilizing BLD Products’ wide product portfolio.

The company had a gross profit of $63.2 million compared with a gross profit of $58.4 million in the comparable quarter of 2010. The improvement was primarily driven by the company’s efficient cost management efforts, such as relocating to low cost manufacturing sites, purchasing product from low cost areas and lower overheads.

Revenues from the Temperature Control segment amounted to $79.7 million, up 7.8% from last year’s $73.9 million. Gross profit from the segment totaled $19.6 million up 10.7% year over year.

On the other hand, revenues in the Engine Management segment escalated 4.6% to $159.9 million. Gross profit in the segment also climbed up 6.7% to $40 million in the second quarter of 2011.

Standard Motor’s cash balance improved slightly to $13.1 million as of June 30, 2011 from $12.1 million as of December 31, 2010. Long-term debt was reported at $258,000 at the end of the second quarter of 2011 versus $307,000 as of December 31, 2010.

The Board of Directors also announced a payment a quarterly dividend of 7 cents on September 01, 2011 to its stockholders of record on August 15, 2011.

The Long Island City, New York-based Standard Motor is one of the leading manufacturers, distributors and marketers of automotive replacement parts in the U.S. and enjoys a strong competitive advantage due to its brand recognition and customer base. Moreover, is not significantly exposed to the cyclicality of the automotive industry since it is focused on the aftermarket, where it is a leading niche market player.

However, high customer concentration, weak pricing in the Temperature Control segment and intensifying competition may hamper its growth in the coming years. The company’s key competitors include Federal-Mogul Corporation ( FDML - Snapshot Report ) , Robert Bosch Corporation and Visteon Corporation ( VC - Snapshot Report ) .

Thus, the shares of Standard Motor are maintaining a Zacks#3 Rank, which translates into a short-term Hold rating.