ATLANTA, July 16 /PRNewswire-FirstCall/ -- Genuine Parts Company
(NYSE: GPC) reported sales and earnings for the second quarter and
six months ended June 30, 2009. Thomas C. Gallagher, Chairman,
President and Chief Executive Officer, announced today that sales
totaling $2.5 billion were down 12% compared to the second quarter
of 2008. Net income for the quarter was $103.6 million, a decrease
of 22% from $133.1 million recorded in the same period of the
previous year. Earnings per share on a diluted basis were 65 cents,
down 20% compared to 81 cents for the second quarter last year.
(Logo: http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGO)
For the six months ended June 30, 2009, sales totaled $5.0 billion,
down 11% compared to the same period in 2008. Net income for the
six months was $192.8 million, a decrease of 25% from the previous
year. Earnings per share on a diluted basis were $1.21, down 22%
compared to $1.56 for the same period last year. In reviewing the
quarter, Mr. Gallagher commented, "The Automotive Group reported a
5% decrease in sales for the quarter and S.P. Richards, our Office
Products Group, was down 6%. These results reflect a slight
improvement from the 7% sales decreases reported for the Automotive
and Office Products groups in the first quarter of 2009. The
Industrial and Electrical Groups, however, showed further sales
declines relative to the first quarter of 2009 due to worsening
conditions in the manufacturing segment of the economy. Motion
Industries, our Industrial Group, had a 22% sales decrease in the
quarter, and EIS, our Electrical Group, had a 34% decrease." Mr.
Gallagher added, "The Balance Sheet at June 30, 2009 remains in
excellent condition and we continue to strengthen our financial
position through working capital and asset management initiatives,
significant cost reduction efforts and steady and strong cash
flows. Cash from operations has improved significantly from 2008
and our sound cash position provides us with significant financial
flexibility. Our priorities for cash remain the dividend,
opportunistic share repurchases, the ongoing reinvestment in each
of our businesses and strategic complementary types of
acquisitions. We continue to believe that the use of cash in these
key areas serves to maximize the total return to shareholders." Mr.
Gallagher concluded, "We are not satisfied with our results for the
second quarter and first half of 2009, but feel that they reflect
the realities of a difficult economy. As we approach the second
half of the year, we will remain focused on those areas of our
business that are within our control and we will support our growth
initiatives and cost reduction efforts with a strong and healthy
balance sheet. We remain confident in the long-term positive
fundamentals of each of our businesses and we believe that we will
be a stronger company when the economy begins to turn." 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, http://www.genpt.com/, by clicking "Investor
Services", or by dialing 877-316-2549, conference ID 85292457. A
replay will also be available on the Company's website or at
800-642-1687, conference ID 85292457, two hours after the
completion of the conference call until 12:00 a.m. Eastern time on
July 31, 2009. Forward Looking Statements Some statements in this
release, 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 our 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 include, but are not limited to, the ability to maintain
favorable supplier arrangements and relationships, changes in
general economic conditions, the growth rate of the market for the
Company's products and services, competitive product, service and
pricing pressures, including internet related initiatives, the
effectiveness of the Company's promotional, marketing and
advertising programs, changes in financial markets, including
particularly the capital and credit markets, changes in laws and
regulations, including changes in accounting and taxation guidance,
the uncertainties of litigation, as well as other risks and
uncertainties discussed from time to time in the Company's 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 Form 10-Q, 10-K, 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. and Canada 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.
GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF INCOME Three Months Ended June 30, Six Months Ended
June 30, 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) (in
thousands, except per share data) Net sales $2,535,045 $2,873,485
$4,979,541 $5,612,958 Cost of goods sold 1,790,190 2,021,272
3,502,485 3,941,262 --------- --------- --------- --------- 744,855
852,213 1,477,056 1,671,696 Selling, administrative & other
expenses 578,805 636,502 1,166,338 1,264,304 ------- -------
--------- --------- Income before income taxes 166,050 215,711
310,718 407,392 Income taxes 62,440 82,638 117,949 150,776 ------
------ ------- ------- Net income $103,610 $133,073 $192,769
$256,616 ======== ======== ======== ======== Basic net income per
common share $.65 $.81 $1.21 $1.56 Diluted net income per common
share $.65 $.81 $1.21 $1.56 Weighted average common shares
outstanding 159,513 163,411 159,479 164,194 Dilutive effect of
stock options and non-vested restricted stock awards 253 716 225
705 --- --- --- --- Weighted average common shares outstanding -
assuming dilution 159,766 164,127 159,704 164,899 ======= =======
======= ======= GENUINE PARTS COMPANY and SUBSIDIARIES SEGMENT
INFORMATION AND FINANCIAL HIGHLIGHTS Three Months Ended June 30,
Six Months Ended June 30, 2009 2008 2009 2008 ---- ---- ---- ----
(Unaudited) (in thousands) Net sales: Automotive $1,360,037
$1,428,513 $2,579,165 $2,734,400 Industrial 701,228 898,069
1,437,729 1,779,282 Office Products 406,134 430,807 818,882 873,199
Electrical/Electronic Materials 80,609 122,584 166,742 236,885
Other (1) (12,963) (6,488) (22,977) (10,808) -------- -------
-------- -------- Total net sales $2,535,045 $2,873,485 $4,979,541
$5,612,958 ========== ========== ========== ========== Operating
profit: Automotive $117,777 $115,514 $205,184 $206,158 Industrial
31,443 76,569 65,618 145,561 Office Products 33,661 37,363 72,389
81,295 Electrical/Electronic Materials 5,090 9,893 10,758 18,903
----- ----- ------ ------ Total operating profit 187,971 239,339
353,949 451,917 Interest expense, net (6,752) (7,332) (13,848)
(14,486) Other, net (15,169) (16,296) (29,383) (30,039) --------
-------- -------- -------- Income before income taxes $166,050
$215,711 $310,718 $407,392 ======== ======== ======== ========
Capital expenditures $22,858 $22,568 $36,955 $44,330 =======
======= ======= ======= Depreciation and amortization $22,411
$22,017 $44,932 $44,701 ======= ======= ======= ======= (1)
Represents the net effect of discounts, incentives and freight
billed reported as a component of net sales. GENUINE PARTS COMPANY
and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30,
June 30, 2009 2008 ---- ---- (Unaudited) (in thousands) ASSETS
CURRENT ASSETS Cash and cash equivalents $238,589 $135,844 Trade
accounts receivable, net 1,239,318 1,342,635 Merchandise
inventories, net 2,215,709 2,319,485 Prepaid expenses and other
current assets 222,399 264,804 ------- ------- TOTAL CURRENT ASSETS
3,916,015 4,062,768 Goodwill and intangible assets, less
accumulated amortization 166,683 126,010 Other assets 339,905
186,414 Net property, plant and equipment 487,307 422,151 -------
------- TOTAL ASSETS $4,909,910 $4,797,343 ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Trade
accounts payable $1,063,260 $1,064,882 Current portion of debt -
250,000 Income taxes payable 44,687 15,059 Dividends payable 63,813
63,798 Other current liabilities 240,807 187,653 ------- -------
TOTAL CURRENT LIABILITIES 1,412,567 1,581,392 Long-term debt
500,000 250,000 Other long-term liabilities 121,168 110,852
Retirement and other post-retirement benefit liabilities 442,940
90,560 Noncontrolling interests in subsidiaries 7,822 67,298 Common
stock 159,531 162,477 Retained earnings and other 2,265,882
2,534,764 --------- --------- TOTAL EQUITY 2,433,235 2,764,539
TOTAL LIABILITIES AND EQUITY $4,909,910 $4,797,343 NOTE: Certain
prior period amounts have been reclassified to conform to current
year presentation. GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended June 30,
2009 2008 ---- ---- (Unaudited) (in thousands) OPERATING
ACTIVITIES: Net income $192,769 $256,616 Adjustments to reconcile
net income to net cash provided by operating activities:
Depreciation and amortization 44,932 44,701 Other 8,639 6,385
Changes in operating assets and liabilities 244,734 (31,193)
------- -------- NET CASH PROVIDED BY OPERATING ACTIVITIES 491,074
276,509 INVESTING ACTIVITIES: Purchases of property, plant and
equipment (36,955) (44,330) Acquisitions and other (107,405)
(53,656) --------- -------- NET CASH USED IN INVESTING ACTIVITIES
(144,360) (97,986) FINANCING ACTIVITIES: Stock options exercised
2,160 1,355 Excess tax benefits from share-based compensation - 287
Dividends paid (125,926) (125,054) Changes in cash overdraft
position (52,000) - Purchase of stock (136) (151,104) -----
--------- NET CASH USED IN FINANCING ACTIVITIES (175,902) (274,516)
--------- --------- NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 170,812 (95,993) CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 67,777 231,837 ------ ------- CASH AND CASH EQUIVALENTS
AT END OF PERIOD $238,589 $135,844 ======== ========
http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGO
http://photoarchive.ap.org/ DATASOURCE: Genuine Parts Company
CONTACT: Jerry W. Nix, Vice Chairman and CFO, +1-770-612-2048, or
Sidney G. Jones, Vice President-Investor Relations,
+1-770-818-4628, both of Genuine Parts Company Web Site:
http://www.genpt.com/
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