ATLANTA -- Genuine Parts Company (GPC) reported record sales and earnings for the first quarter ended March 31. Sales totaling $2.65 billion were up 4 percent compared to the first quarter of 2006. Net income for the quarter was $121.6 million, an increase of 7 percent over $113.9 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 71 cents, up 8 percent compared to 66 cents for the first quarter last year.

“We are pleased to report another record level of sales and earnings for the first quarter of 2007,” said Thomas Gallagher, chairman, president and chief executive officer. “We continue to strengthen our financial position through consistent earnings growth, as well as working capital and asset management initiatives. The balance sheet at March 31, remains in excellent condition.”

Gallagher added, “We experienced our strongest sales growth at EIS, our Electrical Group, which was up 12 percent, and Motion Industries, our Industrial Group, increased sales by 8 percent. Both of these groups continue to perform well and they are positioned to have another good year in 2007. Our Automotive Group sales were up 3 percent. The Automotive operations have been showing a gradual improvement over the past three quarters and we anticipate that they will continue this improving trend over the remainder of the year. S.P. Richards, our Office Products Group, was down 3 percent for the quarter, partly due to a very strong first quarter last year, which was up 13 percent, and partly due to some demand softening in the office products industry over the past several months. However, this group has been one of our most steady performers over the years, and we are optimistic about its growth opportunities over the remainder of the year.”

Gallagher concluded, “Looking ahead, we are encouraged by the opportunity to have another good year in 2007. Stable market conditions and solid growth plans for each of our businesses provide us the basis for steady and consistent sales and earnings growth again this year.”