ATLANTA, April 16 /PRNewswire-FirstCall/ -- Genuine Parts Company
(NYSE: GPC) reported sales and earnings for the first quarter ended
March 31, 2009. Thomas C. Gallagher, Chairman, President and Chief
Executive Officer, announced today that sales totaling $2.4 billion
were down 11% compared to the first quarter of 2008. Net income for
the quarter was $89.2 million, a decrease of 28% over $123.5
million recorded in the same period of the previous year. Earnings
per share on a diluted basis were 56 cents, down 25% compared to 75
cents for the first quarter last year. (Logo:
http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGO) Mr.
Gallagher stated, "It was a challenging quarter for us, as the
effects of the slower economy impacted each of our four business
segments. The Automotive Group and S. P. Richards, our Office
Products Group, both reported a 7% sales decrease, while Motion
Industries, our Industrial Group, reported a 16% sales decline in
the quarter, and EIS, our Electrical Group, had a 25% decrease. Our
Industrial and Electrical businesses sell to the manufacturing
segment of the economy, which has experienced an overall slowdown
in activity over the past several quarters." Mr. Gallagher added,
"While we are not pleased with our first quarter operating results,
the balance sheet at March 31, 2009, remains in excellent condition
and we continue to strengthen our financial position through
working capital and asset management initiatives, as well as steady
and strong cash flows. We believe the use of our cash in several
key areas, such as the dividend, opportunistic share repurchases,
the ongoing investment in each of our businesses and strategic
complimentary types of acquisitions, serves to maximize the total
return to shareholders." Mr. Gallagher concluded, "The effects of
the economic slowdown are likely to persist for several more
quarters. Clearly, these are challenging times; however, our
expectation is to show gradual improvement in our overall results
as the year progresses. The management teams in each of our
business segments are focused on the diligent execution of their
respective growth and operating strategies, the prudent management
of their cost structure and the continued emphasis on further
strengthening our balance sheet." Conference Call Genuine Parts
Company will hold a conference call today at 11:00 a.m. EDT 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 85284172. A replay will also be
available on the Company's website or at 800-642-1687, conference
ID 85284172, two hours after the completion of the call until 12:00
a.m. Eastern time on May 1, 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
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 March 31, 2009 2008 ---- ---- (Unaudited) (in
thousands, except per share data) Net sales $2,444,496 $2,739,473
Cost of goods sold 1,712,295 1,919,990 --------- --------- 732,201
819,483 Selling, administrative & other expenses 587,533
627,802 ------- ------- Income before income taxes 144,668 191,681
Income taxes 55,509 68,138 ------ ------ Net income $89,159
$123,543 ======= ======== Basic net income per common share $.56
$.75 Diluted net income per common share $.56 $.75 Weighted average
common shares outstanding 159,444 164,977 Dilutive effect of stock
options and non-vested restricted stock awards 219 729 --- ---
Weighted average common shares outstanding - assuming dilution
159,663 165,706 ======= ======= GENUINE PARTS COMPANY and
SUBSIDIARIES SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS Three
Months Ended March 31, 2009 2008 ---- ---- (Unaudited) (in
thousands) Net sales: Automotive $1,219,128 $1,305,887 Industrial
736,501 881,213 Office Products 412,748 442,392
Electrical/Electronic Materials 86,133 114,301 Other (1) (10,014)
(4,320) -------- ------- Total net sales $2,444,496 $2,739,473
========== ========== Operating profit: Automotive $87,407 $90,644
Industrial 34,175 68,992 Office Products 38,728 43,932
Electrical/Electronic Materials 5,668 9,010 ----- ----- Total
operating profit 165,978 212,578 Interest expense, net (7,096)
(7,154) Other, net (14,214) (13,743) -------- -------- Income
before income taxes $144,668 $191,681 ======== ======== Capital
expenditures $14,097 $21,762 ======= ======= Depreciation and
amortization $22,521 $22,684 ======= ======= (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
------------------------------------- March 31, March 31, 2009 2008
---- ---- (Unaudited) (in thousands) ASSETS CURRENT ASSETS Cash and
cash equivalents $133,281 $161,519 Trade accounts receivable, net
1,211,337 1,303,787 Merchandise inventories, net 2,253,036
2,314,536 Prepaid expenses and other current assets 222,253 245,891
------- ------- TOTAL CURRENT ASSETS 3,819,907 4,025,733 Goodwill
and intangible assets, less accumulated amortization 158,427
114,489 Other assets 334,155 195,371 Net property, plant and
equipment 412,366 419,825 ------- ------- TOTAL ASSETS $4,724,855
$4,755,418 ========== ========== LIABILITIES AND EQUITY CURRENT
LIABILITIES Trade accounts payable $964,267 $1,002,742 Current
portion of debt 0 250,000 Income taxes payable 70,883 78,994
Dividends payable 63,779 64,283 Other current liabilities 158,445
173,433 ------- ------- TOTAL CURRENT LIABILITIES 1,257,374
1,569,452 Long-term debt 500,000 250,000 Other long-term
liabilities 110,207 111,064 Retirement benefits liabilities 448,844
89,766 Noncontrolling interests in subsidiaries 69,677 65,462
Common stock 159,446 163,818 Retained earnings and other 2,179,307
2,505,856 --------- --------- TOTAL EQUITY 2,408,430 2,735,136
--------- --------- TOTAL LIABILITIES AND EQUITY $4,724,855
$4,755,418 ========== ========== 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
----------------------------------------------- Three Months Ended
March 31, 2009 2008 ---- ---- (Unaudited) (in thousands) OPERATING
ACTIVITIES: Net income $89,159 $123,543 Adjustments to reconcile
net income to net cash provided by operating activities:
Depreciation and amortization 22,521 22,684 Other 2,257 892 Changes
in operating assets and liabilities 33,565 (2,527) ------ -------
NET CASH PROVIDED BY OPERATING ACTIVITIES 147,502 144,592 INVESTING
ACTIVITIES: Purchases of property, plant and equipment (14,097)
(21,762) Acquisitions and other (5,779) (39,003) ------- --------
NET CASH USED IN INVESTING ACTIVITIES (19,876) (60,765) FINANCING
ACTIVITIES: Stock options exercised 142 752 Excess tax benefits
from share-based compensation - 217 Dividends paid (62,148)
(60,789) Purchase of stock (116) (94,325) ----- -------- NET CASH
USED IN FINANCING ACTIVITIES (62,122) (154,145) -------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 65,504
(70,318) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 67,777
231,837 ------ ------- CASH AND CASH EQUIVALENTS AT END OF PERIOD
$133,281 $161,519 ======== ========
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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