Standard Motor Products, Inc. ( SMP - Analyst Report ) announced that its Board of Directors recently authorized the purchase of up to $5 million of its common stock under a stock repurchase program.

Stock will be purchased from time to time in the open market or through private transactions and can be suspended or discontinued if required. The company plans to fund the program with its revolving credit facility.

In the last reported quarter, adjusted earnings of Standard Motor 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.

Consolidated net sales in the quarter grew 5.6% to $244.0 million from $231.0 million in the corresponding quarter of 2010. Both business segments saw modest improvements in their sales.

The company recently strengthened its Engine Management product line by utilizing BLD Products’ wide product portfolio and broad customer base. The Engine Control business of BLD Products Ltd. was acquired by Standard Motor in April 2011.

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 reducing overhead.

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 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, it is not significantly exposed to the cyclicality of the automotive industry since it is focused on the aftermarket, where it is a leading niche 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 ) .

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