ATLANTA, Feb. 16 /PRNewswire-FirstCall/ -- Genuine Parts Company
(NYSE: GPC) reports sales and earnings for the fourth quarter and
year ended December 31, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGO ) Tom
Gallagher, Chairman, President and Chief Executive Officer,
announced today that sales in 2009 were $10.1 billion, down 9%
compared to 2008. Net income for the year was $399.6 million, a
decrease of 16% compared to $475.4 million in 2008. Earnings per
share on a diluted basis were $2.50, down 14% compared to $2.92 in
2008. Mr. Gallagher stated, "The effects of the economic slowdown,
which we began to experience in the final quarter of 2008,
adversely impacted the results in all four of the business segments
throughout 2009. The Automotive Group reported a 2% sales decrease
for the year and S.P. Richards, our Office Products Group, was down
5% for 2009. The difficult economy most significantly impacted our
two businesses serving the manufacturing sector of the economy.
Motion Industries, our Industrial Group, had an 18% sales decrease
for the year, and EIS, our Electrical Group, had a 26% decrease."
Mr. Gallagher added, "2009 turned out to be one of the most
challenging years in the history of Genuine Parts Company.
Fortunately, we were able to maintain a strong balance sheet and
finish the year in excellent financial condition. In fact, the
Company generated record cash flows in 2009. Additionally, we
continue to have confidence in the long-term positive fundamentals
for all four of our businesses and we feel that we are positioned
to show improved sales and earnings as the economy turns." Fourth
Quarter 2009 Sales decreased 2% to $2.47 billion in the fourth
quarter ended December 31, 2009, compared to $2.52 billion for the
same period in 2008. Diluted earnings per share in the fourth
quarter were 62 cents, up 13% compared to 55 cents per share for
the fourth quarter of 2008. In reviewing the quarter, Mr. Gallagher
commented, "We are encouraged by the sequential improvement across
all of our business segments during the final quarter. In the
fourth quarter of 2009, our Automotive sales were up 6%, our Office
Products Group was down 4%, our Industrial Group sales were down
11% and our Electrical Group was down 12%." Mr. Gallagher
concluded, "We observed some early signs of improving market
conditions in the latter part of 2009 and we feel this bodes well
for a stronger performance in 2010. We are fortunate to operate in
four good industries." Conference Call Genuine Parts Company will
hold a conference call today at 11:00 a.m. EST to discuss the
results of the quarter, the year 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 53858190. A replay will also be
available on the Company's website or at 800-642-1687, conference
ID 53858190, two hours after the completion of the call until 12:00
a.m. EST on March 3, 2010. 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, impairment of
financial institutions, 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 Dec.
31, Year Ended Dec. 31, 2009 2008 2009 2008 ---- ---- ---- ----
(Unaudited) (in thousands, except per share data) Net sales
$2,471,214 $2,520,190 $10,057,512 $11,015,263 Cost of goods sold
1,703,754 1,768,401 7,047,750 7,742,773 --------- ---------
--------- --------- 767,460 751,789 3,009,762 3,272,490 Selling,
administrative & other expenses 604,719 601,555 2,365,597
2,504,022 ------- ------- --------- --------- Income before income
taxes 162,741 150,234 644,165 768,468 Income taxes 63,574 62,450
244,590 293,051 ------ ------ ------- ------- Net income $99,167
$87,784 $399,575 $475,417 ======= ======= ======== ======== Basic
net income per common share $.62 $.55 $2.51 $2.93 Diluted net
income per common share $.62 $.55 $2.50 $2.92 Weighted average
common shares outstanding 159,144 159,452 159,410 162,351 Dilutive
effect of stock options and non-vested restricted stock awards 376
457 297 635 --- --- --- --- Weighted average common shares
outstanding - assuming dilution 159,520 159,909 159,707 162,986
======= ======= ======= ======= GENUINE PARTS COMPANY and
SUBSIDIARIES SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
-------------------------------------------- Three Months Ended
Dec. 31, Year Ended Dec. 31, 2009 2008 2009 2008 ---- ---- ----
---- (Unaudited) (in thousands) Net sales: Automotive $1,264,646
$1,194,018 $5,225,389 $5,321,536 Industrial 736,582 828,364
2,885,782 3,514,661 Office Products 383,849 400,347 1,639,018
1,732,514 Electrical/ Electronic Materials 89,702 102,177 345,808
465,889 Other (1) (3,565) (4,716) (38,485) (19,337) ------- -------
-------- -------- Total net sales $2,471,214 $2,520,190 $10,057,512
$11,015,263 ========== ========== =========== =========== Operating
profit: Automotive $75,026 $67,468 $387,945 $385,356 Industrial
60,240 71,871 162,353 294,652 Office Products 27,023 29,406 126,104
144,127 Electrical/ Electronic Materials 7,694 7,546 25,254 36,721
----- ----- ------ ------ Total operating profit 169,983 176,291
701,656 860,856 Interest expense, net (6,602) (7,970) (27,112)
(29,847) Other, net (640) (18,087) (30,379) (62,541) ----- --------
-------- -------- Income before income taxes $162,741 $150,234
$644,165 $768,468 ======== ======== ======== ======== Capital
expenditures $20,085 $44,935 $69,445 $105,026 ======= =======
======= ======== Depreciation and amortization $22,917 $22,229
$90,411 $88,698 ======= ======= ======= ======= (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
------------------------------------- Dec. 31, Dec. 31, 2009 2008
---- ---- (in thousands) ASSETS CURRENT ASSETS Cash and cash
equivalents $336,803 $67,777 Trade accounts receivable, net
1,187,075 1,224,525 Merchandise inventories, net 2,214,076
2,316,880 Prepaid expenses and other current assets 294,874 262,238
------- ------- TOTAL CURRENT ASSETS 4,032,828 3,871,420 Goodwill
and other intangible assets, less accumulated amortization 171,532
158,825 Deferred tax asset 167,722 218,503 Other assets 147,583
114,337 Net property, plant and equipment 485,024 423,265 -------
------- TOTAL ASSETS $5,004,689 $4,786,350 ========== ==========
LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable
$1,094,347 $1,009,423 Income taxes payable 42,988 24,685 Dividends
payable 63,586 62,148 Other current liabilities 207,363 190,847
------- ------- TOTAL CURRENT LIABILITIES 1,408,284 1,287,103
Long-term debt 500,000 500,000 Other long-term liabilities 166,836
103,264 Retirement and other post-retirement benefit liabilities
300,197 502,605 Noncontrolling interests in subsidiaries 8,042
69,046 Common stock 158,918 159,443 Retained earnings and other
2,462,412 2,164,889 --------- --------- TOTAL EQUITY 2,629,372
2,393,378 --------- --------- TOTAL LIABILITIES AND EQUITY
$5,004,689 $4,786,350 ========== ========== NOTE: Certain prior
period amounts have been reclassified to conform to the current
year presentation. GENUINE PARTS COMPANY and SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
----------------------------------------------- Year Ended Dec. 31,
2009 2008 ---- ---- (in thousands) OPERATING ACTIVITIES: Net income
$399,575 $475,417 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
90,411 88,698 Other 33,404 (28,546) Changes in operating assets and
liabilities 321,908 (5,260) ------- ------ NET CASH PROVIDED BY
OPERATING ACTIVITIES 845,298 530,309 INVESTING ACTIVITIES:
Purchases of property, plant and equipment (69,445) (105,026)
Acquisitions and other (122,161) (109,308) Purchase of properties
under construction and lease agreement (72,814) - -------- --- NET
CASH USED IN INVESTING ACTIVITIES (264,420) (214,334) FINANCING
ACTIVITIES: Stock options exercised 1,878 821 Excess tax expense
from share-based compensation (684) (586) Dividends paid (253,558)
(251,808) Changes in cash overdraft position (52,000) 52,000
Purchase of stock (26,019) (273,000) -------- --------- NET CASH
USED IN FINANCING ACTIVITIES (330,383) (472,573) EFFECT OF EXCHANGE
RATE CHANGES ON CASH 18,531 (7,462) NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 269,026 (164,060) CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 67,777 231,837 ------ ------- CASH AND CASH
EQUIVALENTS AT END OF YEAR $336,803 $67,777 ======== =======
http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGODATASOURCE:
Genuine Parts Company CONTACT: Jerry W. Nix, Vice Chairman and CFO,
+1-770-612-2048; Sidney G. Jones, Vice President - Investor
Relations, +1-770-818-4628 Web Site: http://www.genpt.com/
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