Genuine Parts Reports Strong Performance, Solid Outlook

Genuine Parts Company, parent of NAPA Canada, reported sales for the second quarter were up 12% compared to 2009, with automotive division performance up 7%.
Thomas C. Gallagher, chairman, president and chief executive officer, announced that sales totaling $2.8 billion were up 12% compared to the second quarter of 2009. Net income for the quarter was $124.5 million, an increase of 20% from $103.6 million recorded in the same period of the previous year.
Earnings per share on a diluted basis were 78 cents, up 20% compared to 65 cents for the second quarter last year.
For the six months ended June 30, 2010, sales totaled $5.4 billion, up 9% compared to the same period in 2009. Net income for the six months was $225.1 million, an increase of 17% from the same period in 2009.
All figures in U.S. dollars
Earnings per share on a diluted basis were $1.42, up 17% compared to $1.21 for the same period last year.
In reviewing the quarter, Gallagher commented, “We are pleased to report another quarter of solid sales and earnings growth in 2010. In looking at the results by segment, our Industrial and Electrical businesses turned in the strongest results. Sales for Motion Industries, our Industrial Group, were up 26% in the quarter and EIS, our Electrical Group, generated a 32% increase. Both Motion and EIS sell into the manufacturing sector of the economy, which is performing well at this time. Our Automotive Group produced another solid quarter. Sales for this group were up 7%, following a 6% increase in the first quarter and we are encouraged by the sequential improvement that we have seen in our Automotive results over the past several quarters. S.P. Richards, our Office Products Group, ended the quarter down 1%. This is in line with overall office products industry trends and it is reflective of the reduction in office employment over the past two years.”
Gallagher added, “Our balance sheet as of June 30, 2010 also remains in excellent condition. We ended the period with a sound cash position and we continue to generate strong cash flows as a result of our working capital, asset management and cost reduction initiatives.”
Gallagher concluded, “We are encouraged by our sales and earnings growth in the second quarter and through the first six months in 2010. As we look forward, we are optimistic that we can show continued progress over the balance of the year.”

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