ATLANTA – Genuine Parts Co. (GPC) reports sales and earnings for the second quarter and six months ended June 30.
Thomas Gallagher, chairman and CEO, announced today that record sales totaling $3.9 billion were up 6 percent compared to the second quarter of 2013. Net income for the quarter was $197.7 million compared to $216.4 million recorded in the same period of the previous year.
The company reported a pre-tax income adjustment of approximately $36 million recorded in the second quarter of 2013 in connection with the April 1 acquisition of the remaining 70 percent interest in GPC Asia Pacific (Exego).
For the six months ended June 30, sales totaled $7.5 billion, up 10 percent compared to the same period in 2013. Net income for the six months was $355.2 million compared to $360.7 million recorded in the previous year.
In review of the second quarter, Gallagher commented, "We are pleased to report record sales as well as a solid 9 percent comparative earnings increase. Our 6 percent total sales increase includes 5 percent underlying sales growth and a 2.5 percent contribution from acquisitions offset by a currency headwind of approximately 1 percent. Our progress in the quarter also was supported by sales growth in all four of our business segments, with sales for the Automotive Group up 5 percent including 7 percent underlying growth offset by a 2 percent currency headwind. Sales at Motion Industries, our Industrial Group, were up 7 percent, including 4 percent underlying growth and 3 percent from acquisitions. Sales at EIS, our Electrical/Electronic Group, increased by 32 percent due to acquisitions. Sales for S. P. Richards, our Office Products Group, were up 4 percent and includes 2 percent underlying growth along with 2 percent from acquisitions."
Gallagher added that the company achieved its core objectives in the second quarter, growing sales and earnings, producing operating margin improvement and generating solid cash flows while maintaining a strong balance sheet.
"We are both proud of and encouraged by this accomplishment and, looking ahead, we enter the second half of 2014 poised to demonstrate ongoing progress in driving improved results. We remain optimistic about our prospects for growth in each of our four businesses," he said.
