Genuine Parts Quarter Down, Automotive Up

Genuine Parts Company, which operates UAP Inc. in Canada, reported sales and earnings for the third quarter were down slightly over last year, while automotive performance was up.
Larry Prince, chairman of the board of directors, announced that sales totaling $2.1 billion U.S. were down 2% as compared to the third quarter of 2000. Net income was $88.2 million, a decrease of 4% from $91.7 million for the third quarter of 2000. On a per share diluted basis, net income equaled 51 cents, as compared to 53 cents in the third quarter of 2000. All figures in U.S. dollars.
During the nine months ended September 30, 2001, sales totaled $6.3 billion, down 1% over the same period in 2000. Net income for the nine months was $272.2 million compared to $280.1 million for the same period in the prior year. On a per share diluted basis, net income for the period equaled $1.57, a decrease of 1% as compared to $1.59 reported in 2000.
Prince stated: “As we examine our results by business segment it again becomes apparent that our diversity gives us long-term strength and balance. The current economic environment, particularly the reduction in industrial activity, presents a real challenge to our non-automotive operations. Sales for S.P. Richards, our Office Products Group, were down 1% for the quarter, and industrial sales at Motion Industries and EIS were down 7% and 38%, respectively. On a positive note our Automotive Group, which was 53% of our revenue for the quarter, was up 4% and is continuing to show strength.”
Prince further commented: “The fourth quarter may continue to present the same sort of environment we have seen now for several months and we indeed face an uncertain time. Our current feeling is that we will find a way to slightly improve our sales in the final quarter largely driven by the continued improvement we see in the Automotive Group. This will certainly be our goal.”
Mr. Prince concluded: “Our balance sheet remains in excellent shape and expenses are being tightly managed by our GPC team. We especially appreciate this effort as we move into the final quarter of 2001.”