ATLANTA — Genuine Parts Co. (GPC), which just completed its 80th year of operations, reported record sales and earnings for the year ended Dec. 31, 2007.
Tom Gallagher, chairman, president and chief executive officer, announced that sales in 2007 were $10.84 billion, up 4 percent compared to 2006. Net income for the year was $506.3 million, an increase of 7 percent compared to $475.4 million in 2006. Earnings per share on a diluted basis were $2.98, up 8 percent compared to $2.76 in 2006.
Gallagher stated, “We are pleased to report that 2007 was another year of record sales and earnings, marking 80 years of continued progress for Genuine Parts Company. The company’s strongest sales improvement came from our two business segments serving the manufacturing sector of the economy. Motion Industries, our Industrial Group, had another very good year, with sales increasing 8 percent, and EIS, our Electrical/Electronic Group, reported a 7 percent increase in sales for the year. The Automotive Group and S. P. Richards, our Office Products Group, encountered more difficult market circumstances, with Automotive increasing sales by 2 percent and our Office Group reporting a 1 percent sales decrease for the year.”
Gallagher added, “With another record year behind us, we have now increased sales in 57 of the last 58 years and increased profits in 45 of the last 47 years. We are proud of this steady and consistent growth pattern, and we are optimistic about our prospects for continued progress in the year ahead.”
Sales increased 3 percent to $2.63 billion in the fourth quarter ended Dec. 31, 2007, compared to $2.54 billion for the same period in 2006. Diluted earnings per share in the fourth quarter were 75 cents, up 7 percent compared to 70 cents per share for the fourth quarter of 2006.
Gallagher commented, “In the fourth quarter of 2007, our Automotive Group sales were up 2 percent, our Industrial Group increased sales by 7 percent, our Electrical/Electronics Group was up 6 percent and our Office Products Group was down 1 percent. These results were in line with our sales performance for the full year.”
Gallagher concluded, “Although we experienced mixed results among our business segments this past year, we are pleased to operate in four essential and growing industries. We believe that this diversification provides us excellent balance when we look at the company as a whole and as we plan for future growth.”
