Big boost came from Industrial Group, but Automotive Results Also Strong
Genuine Parts Company, the Atlanta-based parent company of NAPA Canada, has reported that sales in 2010 were $11.2 billion, up 11% compared to 2009, with record sales and earning per share.
Net income for the year was $476 million, an increase of 19% compared to $400 million in 2009. Earnings per share on a diluted basis were $3.00, up 20% compared to $2.50 in 2009. All figures in U.S. dollars.
Tom Gallagher, chairman, president and chief executive officer, stated, “We are pleased to report record sales and earnings per share in 2010. The improving market conditions in the industries that we serve, which we began to see in the latter part of 2009, continued throughout the year and they further supported our internal growth initiatives, resulting in the strong performance for the year.”
Gallagher added, “Our 11% sales increase for the company was driven by positive sales growth in all four of our businesses. The Automotive Group reported a 7% sales increase for the year and we were encouraged to see our automotive sales momentum strengthen as the year progressed. Motion Industries, our Industrial Group, generated a 22% sales increase for the year and they benefited from the combination of good internal growth initiatives and the strong rebound that occurred across the manufacturing sector of the economy this past year. Likewise, EIS, our Electrical Group, had a fine year as well, with sales up 30%. Finally, revenues at S.P. Richards, our Office Products Group, were up just slightly over 2009.”
Fourth quarter results were also strong.
Sales increased 14% to $2.81 billion in the fourth quarter ended December 31, 2010, compared to $2.47 billion for the same period in 2009. Diluted earnings per share in the fourth quarter were 75 cents, up 21% compared to 62 cents per share for the fourth quarter of 2009.
In reviewing the quarter, Gallagher commented, “We are encouraged by the strength in sales across all of our business segments in the fourth quarter. Our Automotive sales were up 9%, our Industrial Group sales were up 24%, our Electrical Group sales were up 40% and our Office Products Group sales were up 3%.”
Gallagher concluded, “We enter 2011 with a degree of optimism in each of our four businesses, and with a continued corporate-wide commitment to sustaining good revenue growth, further improving operating margins, generating solid cash flows and maintaining a strong balance sheet.”
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