In our top story this week, Sears Auto yesterday unveiled a new business opportunity for displaced franchise car dealers that want to stay in the automotive biz. The new Independent Sears Auto Center franchise program offers automobile dealers the opportunity to operate licensed Sears Auto Centers, bringing the Sears brand, buying power, distribution network, systems and corporate support to automotive aftermarket businesses. Sears designed the new franchise program to help former franchise auto dealers leverage their facilities by building a set of businesses around parts and services, over-the-counter merchandise and previously-owned vehicle sales. The new Sears Auto Center franchise model is available immediately to qualified dealers. In addition to giving dealers the ability to leverage the strength of its brand, Sears said it will also work with dealers to provide the purchasing scale necessary to achieve superior pricing on tires, batteries, parts, equipment and supplies.

Meanwhile, in the heavy duty distribution segment, the newly formed Truck Pride Partners LLC has announced its new board of managers. Truck Pride Partners was formed from the recent split of Truck Pride and Auto Pride and the subsequent dissolution of Independent Warehouse Distributors (IWD) at the end of 2009 when Auto Pride merged with the Automotive Distribution Network. The Truck Pride Partners Board of Managers for 2010 includes: Chairman, David Settles, Weldon Parts Inc., Oklahoma City, Okla.; Treasurer Jay Boggeman, Plaza Fleet Parts Inc., St. Louis, Mo.; John Bzeta, Fleet Brake Parts and Service, Calgary, Alberta, Canada; Bruce Greer, Kroeger Division E.M. Tharp, Porterville, Calif.; and Michael Schneider, Seneca Auto & Truck Supply Inc., Louisville, Ky.

The remaining three news items in this week’s top five all revolve around parts and profits, as Genuine Parts Co. (GPC), Advance and O’Reilly each reported their financial results for the fourth quarter and full year.

For GPC, sales in 2009 were $10.1 billion, down 9 percent compared to 2008. Net income for the year was $399.6 million, a decrease of 16 percent compared to $475.4 million in 2008. For the fourth quarter, GPC sales decreased 2 percent to $2.47 billion in the fourth quarter ended Dec. 31, 2009, compared to $2.52 billion for the same period in 2008. GPC Chairman, President and CEO Tom Gallagher noted, "2009 turned out to be one of the most challenging years in the history of Genuine Parts Co. Fortunately, we were able to maintain a strong balance sheet and finish the year in excellent financial condition.”

While GPC’s sales were down for the fourth quarter and full year, O’Reilly Automotive reported record revenues and earnings. Sales for the fourth quarter ended Dec. 31, 2009, totaled $1.17 billion, up 5 percent from $1.11 billion for the same period a year ago. Net income for the fourth quarter totaled $72 million, up 68 percent from $43 million for the same period in 2008. For the year ended Dec. 31, 2009, sales increased $1.27 billion, or 36 percent, to $4.85 billion from $3.58 billion for the year ended Dec. 31, 2008. Gross profit for the year increased to $2.33 billion (or 48 percent of sales) from $1.63 billion (or 45.5 percent of sales) for the year ended Dec. 31, 2008, representing an increase of 43 percent.

For Advance Auto Parts, on a comparable basis, total sales for the fourth quarter increased 3.6 percent to $1.14 billion, compared with total sales of $1.10 billion in the fourth quarter of fiscal year 2008. The sales increase reflected the net addition of 52 new stores during the past 12 months and a comparable store sales gain of 2.4 percent compared to a 3.0 percent gain during the fourth quarter of fiscal 2008. For fiscal 2009, Advance’s comparable store sales increased 5.3 percent versus a 1.5 percent increase during fiscal 2008. Comparable store sales increased 1.7 percent for DIY and 13.7 percent for commercial versus a 2.3 percent decrease and a 12.1 percent increase in DIY and commercial last year, respectively.