ATLANTA -- Genuine Parts Co. (GPC) has reported record sales and earnings for the second quarter and six months ended June 30. Thomas Gallagher, chairman, president and chief executive officer, announced yesterday that sales totaling $2.77 billion were up 4 percent compared to the second quarter of 2006. Net income for the quarter was $130.1 million, an increase of 8 percent over $120.7 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 76 cents, up 9 percent compared to 70 cents for the second quarter last year.

For the six months ended June 30, sales totaled $5.42 billion, up 4 percent compared to the same period in 2006. Net income for the six months was $251.7 million, an increase of 7 percent over $234.6 million recorded in the previous year. Earnings per share on a diluted basis were $1.47, up 9 percent compared to $1.35 for the same period last year.

Gallagher stated, “We are pleased that all four of our business segments contributed to our revenue growth in the second quarter. Motion Industries, our Industrial Group, had the strongest performance, increasing sales by 9 percent. EIS, our Electrical Group, had solid results as they produced a 7 percent increase. The Industrial and Electrical Groups are performing well and with the current favorable conditions in each of these industries, we are encouraged by their prospects over the remainder of the year. The Automotive Group reported a 2 percent increase for the quarter and our Office Products Group was up 1 percent. Market conditions continued to be challenging for each of these businesses in the quarter but, through the combination of internal revenue initiatives and improving industry fundamentals, we anticipate a bit stronger growth in Automotive and Office Products over the second half of the year.”

Gallagher added, “The balance sheet at June 30 remains in excellent condition and we continue to strengthen our financial position and generate steady and consistent cash flows. We have used cash in several key areas, such as the dividend and share repurchase program as well as investing in our businesses, to maximize the total return to shareholders.”

Gallagher concluded, “At mid-year 2007, we continue to be optimistic about our prospects for the remainder of the year. Each of our four businesses has initiatives in place to enable them to generate solid revenue increases in the months ahead.”