Genuine Parts Co. Reports Sales and Earnings for the Third Quarter and Nine MonthsAftermarketNews.com
ATLANTA -- Genuine Parts Co. (GPC) has reported sales and earnings for the third quarter and nine months ended Sept. 30. Sales totaling $2.6 billion were down 10 percent compared to the third quarter of 2008. Net income for the quarter was $107.6 million, a decrease of 18 percent from $131 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 67 cents, down 17 percent compared to 81 cents for the third quarter last year.
For the nine months ended Sept. 30, sales totaled $7.6 billion, down 11 percent compared to the same period in 2008. Net income for the nine months was $300.4 million, a decrease of 23 percent from $387.6 million recorded in the previous year. Earnings per share on a diluted basis were $1.88, down 20 percent compared to $2.36 for the same period last year.
In review of the quarter, Thomas Gallagher, chairman, president and chief executive officer, commented, "The Automotive Group reported a 1 percent decrease in sales for the quarter, which is improved from the 7 percent and 5 percent sales declines reported for this group in the first and second quarters, respectively. S.P. Richards, our Office Products Group, was down 5 percent and this compares to a 7 percent sales decrease in the first quarter and a 6 percent 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 percent sales decrease in the quarter, and EIS, our Electrical Group, had a 30 percent decrease."
Gallagher added, "The balance sheet at Sept. 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."
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."