Genuine Parts Company Reports Record Sales And Earnings For The Second Quarter Ended June 30, 2012

ATLANTA, July 19, 2012 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) reports sales and earnings for the second quarter and six months ended June 30, 2012. 

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Thomas C. Gallagher, Chairman and Chief Executive Officer, announced today that record sales totaling $3.3 billion were up 5% compared to the second quarter of 2011.  Net income for the quarter was $168.6 million, an increase of 11% from $151.8 million recorded in the same period of the previous year.  Record earnings per share on a diluted basis were $1.08, up 12.5% compared to 96 cents for the second quarter last year.

For the six months ended June 30, 2012, sales totaled $6.5 billion, up 6% compared to the same period in 2011.  Net income for the six months was $314.9 million, an increase of 13% from $278.3 million recorded in the previous year.  Earnings per share on a diluted basis were $2.01, up 14% compared to $1.76 for the same period last year.

In review of the quarter, Mr. Gallagher commented, "We are pleased to report another period of record sales and earnings for Genuine Parts Company.  The Automotive Group reported a 4% sales increase in the second quarter and, although this business slowed some during the period due to the softer sales environment across the industry, we believe our sales initiatives and the sound underlying fundamentals in the automotive aftermarket will support continued growth for this group in the quarters ahead.  Sales for Motion Industries, our Industrial Group, and EIS, our Electrical Group, remain the strongest among our four business segments.  Motion posted an 8% sales increase for the quarter, and EIS was up 9%.  We remain encouraged by the ongoing sales opportunities for these two groups.  S. P. Richards, our Office Products Group, showed a 1% sales decrease for the quarter, which reflects the ongoing challenging conditions in the office products industry.  We do not expect much change in these conditions over the balance of the year, but expect our internal sales initiatives to produce modest improvement in the results for this business."  

Mr. Gallagher added, "Our balance sheet as of June 30, 2012 remains in excellent condition and we continue to generate strong cash flows as a result of our increased earnings and working capital, asset management and cost reduction initiatives.  Our cash position offers us tremendous opportunities and we continue to use our cash in several key areas to maximize the total return to shareholders.  Our priorities for cash include the dividends paid to shareholders, the ongoing reinvestment back into each of our four businesses, strategic acquisitions and share repurchases."

Mr. Gallagher concluded, "We are encouraged by the record level of sales and earnings achieved in the second quarter and for the first six months in 2012.  Despite the potential for softer macro-economic conditions over the last half of the year, we remain optimistic that our businesses will show continued progress in the quarters ahead.  Our management team remains committed to sustaining good revenue growth, further improving operating margins, generating solid cash flows and maintaining a strong balance sheet."

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. Eastern time to discuss the results of the quarter and the future outlook.  Interested parties may listen to the call on the Company's website, www.genpt.com, by clicking "Investor Services", or by dialing 877-331-5106, conference ID 94569224.  A replay of the call will also be available on the Company's website or at 855-859-2056, conference ID 94569224, after the completion of the conference call until 12:00 a.m. Eastern time on August 2, 2012.

Forward Looking Statements

Some statements in this report, as well as in other materials we file with the Securities and Exchange Commission (SEC) or otherwise release to the public and in materials that we make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, slowing demand for the Company's products, changes in general economic conditions, including, unemployment, inflation or deflation, high energy costs, uncertain credit markets and other macro-economic conditions, the ability to maintain favorable vendor arrangements and relationships, disruptions in our vendors' operations, competitive product, service and pricing pressures, the Company's ability to successfully implement its business initiatives in each of its four business segments, the Company's ability to successfully integrate its acquired businesses, the uncertainties and costs of litigation, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2011 and from time to time in the Company's subsequent filings with the SEC.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports to the SEC.

About Genuine Parts Company

Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada and Mexico. The Company also distributes industrial replacement parts in the U.S., Canada and Mexico through its Motion Industries subsidiary.  S.P. Richards Company, the Office Products Group, distributes business products nationwide in the U.S. and Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S., Canada and Mexico.

(1)   Represents the net effect of discounts, incentives and freight billed reported as a component of net sales.

SOURCE Genuine Parts Company