ATLANTA -- Genuine Parts Co. (GPC) reported record sales and earnings for the third quarter and nine months ended Sept. 30. Tom Gallagher, chairman, president and chief executive officer, announced today that sales totaling $2.7 billion were up 6 percent compared to the third quarter of 2005. Net income was $121.3 million, an increase of 9 percent, compared to $110.9 million for the third quarter of 2005. On a per share diluted basis, net income was 71 cents, up 13 percent compared to 63 cents for the third quarter last year.

For the nine months, sales totaled $7.9 billion, up 7 percent compared to the same period in 2005. Net income for the nine months was $355.9 million, an increase of 8 percent over $328.4 million recorded in the previous year. Earnings per share on a diluted basis were $2.06, up 10 percent compared to $1.87 for the same period last year.

Gallagher stated, “We are pleased to report record levels of revenues and earnings for the third quarter of 2006. Again this quarter, each of our four business segments contributed to the overall sales growth for the company. Motion Industries, our industrial group, grew sales by 11 percent and EIS, our electrical group, posted a 23 percent sales increase for the quarter. Business conditions in the industries served by the industrial and electrical operations have remained strong and we are expecting another period of good results from these groups in the fourth quarter. S.P. Richards, our office products group, generated a 5 percent sales increase for the quarter and the automotive group increased sales by 1 percent in the quarter. Our ongoing sales initiatives, combined with positive business indicators in all four of our businesses, provide each of our segments with continued growth opportunities in the fourth quarter of 2006 and we anticipate solid performances from all four groups.”

Gallagher further commented, “The balance sheet at Sept. 30 remains in excellent condition and we continue to strengthen our financial position through strong earnings growth as well as working capital and asset management initiatives.”

Gallagher added, “The company also continues to generate consistent and steady cash flows and our cash position remains strong. Our priorities for cash remain, first, the dividend, which was increased in 2006 for the 50th consecutive year. Another priority for cash has been opportunistic share repurchases and, as part of our share repurchase program, we have purchased 2.9 million shares of our company stock thus far in 2006. Other key uses for cash remain the ongoing reinvestment in each of our businesses and strategic complimentary types of acquisitions.”

Gallagher concluded, “We are pleased with our results for the quarter and nine months and we are encouraged by the opportunities to show further progress in the fourth quarter.”