ATLANTA -- Completing its 78th year of operations, Genuine Parts Co. (GPC) has reported record sales and earnings for the year ending December 31, 2005.

Tom Gallagher, chairman, president and chief executive officer, announced that sales in 2005 were $9.8 billion, up 8 percent compared to 2004. Net income for the year was $437.4 million, an increase of 11 percent compared to $395.6 million in 2004. Earnings per share on a diluted basis were $2.50, up 11 percent compared to $2.25 in 2004.

"We are pleased to report that 2005 was another record year for the company,” said Gallagher. “With these results, we have now increased sales in 55 of the last 56 years and increased profits in 43 of the last 45 years. This is a record that we are proud of and we feel that it shows the stability and consistency of Genuine Parts Company. It is also important to note that through continued focus on asset management and the generation of strong cash flows, our financial condition was further strengthened in 2005."

Sales increased 7 percent to $2.41 billion in the fourth quarter, compared to $2.25 billion for the same period in 2004. Diluted earnings per share in the fourth quarter were 63 cents, up 15 percent compared to 55 cents per share for the fourth quarter of 2004.

Gallagher commented, "For the quarter, revenues in our automotive group were up 5 percent. Motion Industries, our industrial group, increased sales by 9 percent, and EIS, our electrical/electronics group, was up 6 percent. Sales for S.P. Richards, our office products group, improved by 10 percent, their strongest quarter for revenue growth in 2005."

Gallagher concluded, "As we look back over 2005, we are pleased with the progress that was made throughout our company. We enter 2006 with optimism and enthusiasm and with a commitment throughout our organization to strive for further improvement in the year ahead. Our focus, across all of our business segments, is to maintain our level of revenue growth, further improve our operating margins, and continue to enhance our asset management and working capital efficiencies."

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