Unassociated Document

UNITED COMPONENTS, INC.

/s/ Mark P. Blaufuss

Mark P. Blaufuss

Chief Financial Officer

Exhibit 99.1

United Components Reports Results of Operations for

Fourth Quarter 2009

-	Strong operating performance results in sequential EBITDA improvement for every quarter in 2009

-	7.4% revenue increase over fourth quarter of 2008

-	Revenue increases across all channels except heavy duty

EVANSVILLE, IN March 17, 2010 – United Components, Inc. (“UCI”), a leading manufacturer of vehicle replacement parts, today announced results for the fourth quarter ended December 31, 2009. Revenue of $218.8 million was up $15.0 million, or 7.4%, compared to the year-ago quarter. The company reported that revenue increased in the retail, traditional, OEM, and OES (new car dealer service) channels, and decreased only in the heavy duty channel.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, as adjusted consistent with the company’s historical presentations, was $38.8 million for the fourth quarter, compared with $16.9 million for the year-ago quarter. The reconciliation of net income to adjusted EBITDA, a non-GAAP measure of financial performance, is set forth in Schedule A.

Net income attributable to UCI for the quarter was $8.5 million, including $6.3 million, net of tax, in special charges, consisting of costs related to obtaining new business, restructuring and severance costs, and class action and patent litigation costs. Excluding these charges, adjusted net income attributable to UCI would have been $14.8 for the quarter. Adjusted net income attributable to UCI for the fourth quarter of 2008 was $0, excluding $5.3 million, net of tax, in special charges, consisting of costs related to obtaining new business, integration of our water pump operations, trademark impairment, a one-time warranty expense, defending class action litigation, establishing new facilities in China and reduction in force.

“We’re very pleased to complete 2009 on a very strong note, with our best quarterly EBITDA performance in two years,” said Bruce Zorich, Chief Executive Officer of UCI. “Our commitment to operational excellence and a leaner cost structure has allowed us to post sequential EBITDA improvement for four consecutive quarters.”

“While we’re pleased to have achieved this performance in a year of flat sales caused by the sluggish economy, we’re very encouraged by the positive top-line trends we are now seeing,” continued Zorich. “The indicators we look to in our business, including miles driven and vehicle age, signal revenue growth into 2010. In addition to this organic growth, recent new business wins and revenue opportunities have us excited about future growth prospects.”

As of December 31, 2009, the company’s debt stood at $422.2 million. The company ended the quarter with $131.9 million in cash.

Conference Call

UCI will host a conference call to discuss its results and performance on Thursday, March 18, at 11:00 a.m. Eastern Time (ET). Interested parties are invited to listen to the call by telephone. Domestic callers can dial (800) 637-1381. International callers can dial (502) 498-8424.

A replay of the call will be available from March 19, 2010, for a ninety day period, at www.ucinc.com. Click on the UCI 2009 4th Quarter Results button.

About United Components, Inc.

United Components, Inc. is among North America’s largest and most diversified companies servicing the vehicle replacement parts market. We supply a broad range of products to the automotive, trucking, marine, mining, construction, agricultural and industrial vehicle markets. Our customer base includes leading aftermarket companies as well as a diverse group of original equipment manufacturers.

Forward Looking Statements

All statements, other than statements of historical facts, included in this press release and the attached report that address activities, events or developments that UCI expects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements give UCI’s current expectations and projections relating to the financial condition, results of operations, plans, objectives, future performance and business of UCI and its subsidiaries. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They are subject to uncertainties and factors relating to UCI’s operations and business environment, all of which are difficult to predict and many of which are beyond UCI’s control. UCI cautions investors that these uncertainties and factors, including those discussed in Item 1A of UCI’s 2008 Annual Report on Form 10-K and in its other SEC filings, could cause UCI’s actual results to differ materially from those stated in the forward-looking statements. UCI cautions that investors should not place undue reliance on any of these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and except as required by law, UCI undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

For More Information, Contact:

Mark Blaufuss, Chief Financial Officer (812) 867-4726

United Components, Inc.

Condensed Consolidated Income Statements

(in thousands)

	Three Months ended December 31,						Year ended December 31,
	2009			2008			2009			2008
	(Unaudited)			(Unaudited)			(Unaudited)			(Audited)

Net sales	$	218,757		$	203,746		$	884,954		$	880,441
Cost of sales		163,509			171,092			685,356			702,522
Gross profit		55,248			32,654			199,598			177,919

Operating expense
Selling and warehousing		(14,163	)		(15,696	)		(56,598	)		(62,906	)
General and administrative		(11,004	)		(10,953	)		(45,525	)		(49,320	)
Amortization of acquired intangible assets		(1,399	)		(1,547	)		(5,758	)		(6,349	)
Restructuring costs		(922	)		(1,696	)		(923	)		(2,380	)
Trademark impairment loss		--			(500	)		--			(500	)
Patent litigation costs		(7,002	)		--			(7,002	)		--
Operating income		20,758			2,262			83,792			56,464

Other expense
Interest expense, net		(6,989	)		(8,354	)		(30,001	)		(34,192	)
Management fee expense		(500	)		(500	)		(2,000	)		(2,000	)
Miscellaneous, net		(1,293	)		(1,078	)		(5,458	)		(3,507	)
Income (loss) before income taxes		11,976			(7,670	)		46,333			16,765
Income tax (expense) benefit		(3,681	)		2,116			(16,377	)		(7,656	)
Net income (loss)		8,295			(5,554	)		29,956			9,109
Less: Loss attributable to noncontrolling interest		(169	)		(259	)		(680	)		(818	)
Net income (loss) attributable to United Components, Inc.	$	8,464		$	(5,295	)	$	30,636		$	9,927

United Components, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

	December 31, 2009		December 31, 2008
Assets	(unaudited)

Current assets
Cash and cash equivalents	$	131,913	$	46,612
Accounts receivable, net		261,210		261,624
Inventories, net		133,058		159,444
Deferred tax assets		30,714		24,245
Other current assets		23,499		19,452
Total current assets		580,394		511,377

Property, plant and equipment, net		149,753		167,906
Goodwill		241,461		241,461
Other intangible assets, net		68,030		74,606
Deferred financing costs, net		1,843		2,649
Other long-term assets		6,304		1,823
Restricted cash		9,400		--

Total assets	$	1,057,185	$	999,822

Liabilities and shareholder’s equity

Current liabilities
Accounts payable	$	111,898	$	104,416
Short-term borrowings		3,460		25,199
Current maturities of long-term debt		17,925		422
Accrued expenses and other current liabilities		106,981		85,730
Total current liabilities		240,264		215,767

Long-term debt, less current maturities		400,853		418,025
Pension and other postretirement liabilities		70,802		79,832
Deferred tax liabilities		8,546		3,560
Due to parent		30,105		17,535
Other long-term liabilities		6,672		2,540
Total liabilities		757,242		737,259

Shareholder’s equity		299,943		262,563

Total liabilities and shareholder’s equity	$	1,057,185	$	999,822

United Components, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

	Year ended December 31,
	2009			2008
	(unaudited)

Net cash provided by operating activities	$	129,313		$	32,423

Cash flows from investing activities
Capital expenditures		(15,266	)		(31,940	)
Proceeds from sale of property, plant and equipment		2,566			421
Increase in restricted cash		(9,400	)		--
Net cash used in investing activities		(22,100	)		(31,519	)

Cash flows from financing activities
Issuance of debt		13,187			27,993
Debt repayments		(35,227	)		(23,407	)
Net cash provided by (used in) financing activities		(22,040	)		4,586


Effect of currency exchange rate changes on cash		128			(318	)

Net increase in cash and cash equivalents		85,301			5,172

Cash and cash equivalents at beginning of year		46,612			41,440

Cash and cash equivalents end of period	$	131,913		$	46,612

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are presented because they are believed to be frequently used by parties interested in United Components, Inc. (“UCI”). Management believes that EBITDA and Adjusted EBITDA provide useful information to investors because they facilitate an investor’s comparison of UCI’s operating results to that of companies with different capital structures.

The calculation of Adjusted EBITDA, presented below, reflects the calculation of EBITDA as used in the amended and restated credit agreement for UCI’s senior credit facility. The Adjusted EBITDA required by the credit agreement is used to measure compliance with covenants of that agreement such as interest coverage.

EBITDA and Adjusted EBITDA are not measures of financial performance under United States generally accepted accounting principles (“U.S. GAAP”) and should not be considered alternatives to net income, operating income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flow from operating activities as a measure of liquidity.

Schedule A

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

(dollars in millions)

		2009											2008
		Q1		Q2			Q3		Q4	Full Year			Q1		Q2		Q3		Q4		Full Year
Results of operations:
Net income (loss) attributable to UCI	$	1.6	$	7.5		$	13.1	$	8.4	$	30.6	$	6.8	$	4.0	$	4.4	$	(5.3	)	$	9.9

Interest, net of minority interest		8.0		7.8			7.2		7.0		30.0		9.1		8.4		8.3		8.4			34.2

Income tax expense (benefit)		1.2		4.3			7.3		3.7		16.5		4.2		2.4		3.3		(2.0	)		7.9

Depreciation, net of minority interest		7.1		7.1			6.9		6.8		27.9		6.7		6.8		6.6		7.2			27.3

Amortization		2.1		2.2			2.1		2.1		8.5		2.2		2.3		2.3		2.2			9.0

EBITDA		20.0		28.9			36.6		28.0		113.5		29.0		23.9		24.9		10.5			88.3

Special items:

Restructuring costs (gains)		0.2		(0.6	)		0.4		1.2		1.2		0.4		0.1		0.2		1.7			2.4

Reduction in force severance		1.0		1.2			0.4		0.2		2.8		--		--		0.3		0.1			0.4

Trademark impairment loss		--		--			--		--		--		--		--		--		0.5			0.5

Cost of defending class action litigation		0.5		0.3			0.3		0.4		1.5		--		1.5		1.7		0.8			4.0

Patent litigation costs		--		--			--		7.0		7.0		--		--

One-time warranty expense		--		--			--		--		--		--		5.8		--		0.9			6.7

New business changeover cost and sales commitment costs		2.4		1.1			0.2		1.3		5.0		1.1		0.8		2.0		1.1			5.0

Establishment of new facilitiesin China		0.4		0.1			--		--		0.5		1.4		1.3		0.3		0.6			3.6

Non-cash charges (stock options expense)		0.2		--			--		0.2		0.4		0.2		0.2		0.2		0.2			0.8

Management fee		0.5		0.5			0.5		0.5		2.0		0.5		0.5		0.5		0.5			2.0

Adjusted EBITDA	$	25.2	$	31.5		$	38.4	$	38.8	$	133.9	$	32.6	$	34.1	$	30.1	$	16.9		$	113.7

Delaware		333-107219		04-3759857
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)


Exhibit No.		Description
99.1		United Components, Inc.’s earnings release for the fourth quarter ended December 31, 2009.