ATLANTA, Oct. 16 /PRNewswire-FirstCall/ -- Genuine Parts Company
(NYSE: GPC) reported sales and earnings for the third quarter and
nine months ended September 30, 2009. Thomas C. Gallagher,
Chairman, President and Chief Executive Officer, announced today
that sales totaling $2.6 billion were down 10% compared to the
third quarter of 2008. Net income for the quarter was $107.6
million, a decrease of 18% from $131.0 million recorded in the same
period of the previous year. Earnings per share on a diluted basis
were 67 cents, down 17% compared to 81 cents for the third quarter
last year. (Logo:
http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGO) For the
nine months ended September 30, 2009, sales totaled $7.6 billion,
down 11% compared to the same period in 2008. Net income for the
nine months was $300.4 million, a decrease of 23% from $387.6
million recorded in the previous year. Earnings per share on a
diluted basis were $1.88, down 20% compared to $2.36 for the same
period last year. In review of the quarter, Mr. Gallagher
commented, "The Automotive Group reported a 1% decrease in sales
for the quarter, which is improved from the 7% and 5% sales
declines reported for this group in the first and second quarters,
respectively. S.P. Richards, our Office Products Group, was down 5%
and this compares to a 7% sales decrease in the first quarter and a
6% decrease last quarter. Sales for the Industrial and Electrical
Groups were down significantly, but they were consistent with their
results for the second quarter, which we believe is a reflection of
stabilizing 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 30% decrease."
Mr. Gallagher added, "The balance sheet at September 30, 2009
remains in excellent condition and we continue to strengthen our
financial position through working capital and asset management
initiatives, cost reduction efforts and steady and strong cash
flows. The Company's sound cash position provides us with
significant financial flexibility and our priorities for cash in
several key areas serve to maximize the total return to
shareholders." Mr. Gallagher concluded, "2009 has proven to be a
challenging year for GPC. However, we continue to have confidence
in the long-term positive fundamentals for all four of our business
segments. Our primary focus currently is to keep the balance sheet
strong and to position each of our businesses to show improved
sales and earnings results as the economy begins to improve."
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 85294980. A replay will also be available on the
Company's website or at 800-642-1687, conference ID 85294980, two
hours after the completion of the conference call until 12:00 a.m.
Eastern time on October 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 Nine Months Ended Sept. 30,
Sept. 30, 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) (in
thousands, except per share data) Net sales $2,606,757 $2,882,115
$7,586,298 $8,495,073 Cost of goods sold 1,841,511 2,033,110
5,343,996 5,974,372 --------- --------- --------- --------- 765,246
849,005 2,242,302 2,520,701 Selling, administrative & other
expenses 594,540 638,163 1,760,878 1,902,467 ------- -------
--------- --------- Income before income taxes 170,706 210,842
481,424 618,234 Income taxes 63,067 79,825 181,016 230,601 ------
------ ------- ------- Net income $107,639 $131,017 $300,408
$387,633 ======== ======== ======== ======== Basic net income per
common share $.67 $.81 $1.88 $2.37 Diluted net income per common
share $.67 $.81 $1.88 $2.36 Weighted average common shares
outstanding 159,541 161,603 159,500 163,324 Dilutive effect of
stock options and Non-vested restricted stock awards 335 673 268
689 --- --- --- --- Weighted average common shares outstanding -
assuming dilution 159,876 162,276 159,768 164,013 ======= =======
======= ======= GENUINE PARTS COMPANY and SUBSIDIARIES SEGMENT
INFORMATION AND FINANCIAL HIGHLIGHTS Three Months Ended Nine Months
Ended Sept. 30, Sept. 30, 2009 2008 2009 2008 ---- ---- ---- ----
(Unaudited) (in thousands) Net sales: Automotive $1,381,578
$1,393,118 $3,960,743 $4,127,518 Industrial 711,471 907,015
2,149,200 2,686,297 Office Products 436,287 458,968 1,255,169
1,332,167 Electrical/ Electronic 89,364 126,827 256,106 363,712
Materials Other (1) (11,943) (3,813) (34,920) (14,621) --------
------- -------- -------- Total net Sales $2,606,757 $2,882,115
$7,586,298 $8,495,073 ========== ========== ========== ==========
Operating profit: Automotive $107,735 $111,730 $312,919 $317,888
Industrial 36,495 77,220 102,113 222,781 Office Products 26,692
33,426 99,081 114,721 Electrical/ Electronic Materials 6,802 10,272
17,560 29,175 ----- ------ ------ ------ Total operating profit
177,724 232,648 531,673 684,565 Interest expense, net (6,662)
(7,391) (20,510) (21,877) Other, net (356) (14,415) (29,739)
(44,454) ------- ------- ------- ------- Income before income taxes
$170,706 $210,842 $481,424 $618,234 ======== ======== ========
======== Capital expenditures $12,405 $15,761 $49,360 $60,091
======= ======= ======= ======= Depreciation and amortization
$22,562 $21,768 $67,494 $66,469 ======= ======= ======= ======= (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 Sept. 30,
Sept. 30, 2009 2008 ---- ---- (Unaudited) (in thousands) ASSETS
CURRENT ASSETS Cash and cash equivalents $363,133 $124,428 Trade
accounts receivable, net 1,250,575 1,350,568 Merchandise
inventories, net 2,188,133 2,318,215 Prepaid expenses and other
current assets 232,450 279,932 ------- ------- TOTAL CURRENT ASSETS
4,034,291 4,073,143 Goodwill and other intangible assets, less
accumulated amortization 171,573 147,940 Other assets 285,730
185,420 Net property, plant and equipment 485,647 412,755 -------
------- TOTAL ASSETS $4,977,241 $4,819,258 ========= =========
LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable
$1,124,276 $1,070,513 Current portion of debt - 250,000 Income
taxes payable 56,997 18,506 Dividends payable 63,819 63,003 Other
current liabilities 199,419 223,634 ------- ------- TOTAL CURRENT
LIABILITIES 1,444,511 1,625,656 Long-term debt 500,000 250,000
Other long-term liabilities 128,729 115,027 Retirement and other
post-retirement benefit liabilities 289,659 91,031 Noncontrolling
interests in subsidiaries 7,447 68,439 Common stock 159,552 160,557
Retained earnings and other 2,447,343 2,508,548 --------- ---------
TOTAL EQUITY 2,614,342 2,737,544 --------- --------- TOTAL
LIABILITIES AND EQUITY $4,977,241 $4,819,258 ========= =========
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 Nine
Months Ended Sept. 30, 2009 2008 ---- ---- (Unaudited) (in
thousands) OPERATING ACTIVITIES: Net income $300,408 $387,633
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 67,494 66,469
Other 8,563 13,067 Changes in operating assets and liabilities
390,038 1,836 ------- ----- NET CASH PROVIDED BY OPERATING
ACTIVITIES 766,503 469,005 INVESTING ACTIVITIES: Purchases of
property, plant and equipment (49,360) (60,091) Acquisitions and
other (123,047) (98,735) Purchase of properties under construction
and lease agreement (72,811) - -------- ----- NET CASH USED IN
INVESTING ACTIVITIES (245,218) (158,826) FINANCING ACTIVITIES:
Stock options exercised 2,178 1,364 Excess tax benefits from
share-based compensation 63 313 Dividends paid (189,739) (188,805)
Changes in cash overdraft position (52,000) - Purchase of stock
(159) (228,863) ----- --------- NET CASH USED IN FINANCING
ACTIVITIES (239,657) (415,991) EFFECT OF EXCHANGE RATE CHANGES ON
CASH 13,728 (1,597) ------ ------- NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 295,356 (107,409) CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 67,777 231,837 ------ ------- CASH AND CASH
EQUIVALENTS AT END OF PERIOD $363,133 $124,428 ======== ========
http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGODATASOURCE:
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 Web Site: http://www.genpt.com/
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