ATLANTA — Genuine Parts Company (GPC) has reported sales and earnings for the first quarter ended March 31, 2008. Sales totaling $2.74 billion were up 3 percent compared to the first quarter of 2007. Net income for the quarter was $123.5 million, an increase of 2 percent over $121.6 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 75 cents, up 6 percent compared to 71 cents for the first quarter last year.
Thomas Gallagher, chairman, president and chief executive officer, commented that GPC’s Automotive Group experienced its highest percentage of growth in two years.
Gallagher stated, “We are pleased to report that the 1st Quarter of 2008 was another period of sales and earnings growth for Genuine Parts Company. EIS, our Electrical Group, had another fine quarter, generating the strongest sales growth among our four business segments. They were up 7 percent in the quarter and continue their trend of solid progress. Motion Industries, our Industrial Group, also reported strong results, with a 6 percent sales increase for the quarter. We believe that both EIS and Motion are positioned to have another good year in 2008. The Automotive Group reported a 4 percent increase in the quarter and this is the highest percentage growth since the second quarter of 2006, which is encouraging. S.P. Richards, our Office Products Group, was down 2 percent for the quarter, reflecting continued softness in the office products industry. Despite the decrease in the first quarter, and the ongoing industry sluggishness, we do feel that S.P. Richards has the initiatives in place to show improved performance over the remainder of the year.”
Gallagher added, “The company is also generating strong cash flows and our cash position remains in good shape. We have used cash in several key areas to maximize the total return to shareholders. First and foremost is the dividend paid to shareholders, and cash dividends for 2008 were increased by 7 percent to $1.56 on an annual basis, representing our 52nd consecutive year of increased dividends. Another priority for cash has been opportunistic share repurchases and as part of our share repurchase program, we have purchased approximately 2.4 million shares of our company stock thus far in 2008. This follows the purchase of 5 million shares in 2007. Other key uses for cash remain the ongoing reinvestment in each of our businesses and strategic complimentary types of acquisitions. During the quarter, Automotive acquired a 100 percent stake in Altrom Canada and Altrom America, effective Jan. 1, Motion Industries acquired Mill Supply Corporation in March, and S.P. Richards completed the acquisition of O’Henry, a regional office products distributor, as of April 1.”
Gallagher concluded, “As we move forward in 2008, we recognize that we are operating in an uncertain and challenging economic environment. However, our focus remains on the crisp execution of our growth and operational strategies in each of our businesses, as well as our ongoing initiatives to further strengthen the balance sheet.”
For more information about Genuine Parts Company, visit: www.genpt.com.
