ATLANTA — Genuine Parts Co. (GPC) has reported sales and earnings for the first quarter, which ended on March 31.
Sales for GPC totaled $2.2 billion, up 9 percent compared to the first quarter of 2003. Net income for the quarter was $100.2 million, an increase of 13 percent over $88.4 million recorded in the previous year before the cumulative effect of an accounting change adopted January 1, 2003.
Earnings per share on a diluted basis were 57 cents, up 12 percent compared to 51 cents for the first quarter last year before the accounting change. In accordance with the Financial Accounting Standards Board’s EITF 02-16 affecting the accounting treatment of cash consideration received from vendors, a non-cash charge of $20 million was recorded as of January 1, 2003, representing the cumulative effect of a change in accounting principle. After the cumulative effect adjustment in 2003, net income for the quarter was up 45 percent and diluted earnings per share were up 46 percent compared to the first quarter of 2003.
Larry Prince, chairman of the board of directors, said the increase revenues are encouraging.
“Our 9 percent sales gain is very encouraging and we like the fact that each of our four business segments had a successful first quarter,” said Prince. “The Automotive Group reported strong results with a 10 percent increase in revenues for the quarter. Motion Industries, our Industrial Group, continued their trend of improvement with a 7 percent increase and EIS, our Electrical/Electronics Group, was strong with a 10 percent improvement. S. P. Richards, our Office Products Group, produced another steady performance with sales up 6 percent for the quarter.
“We believe the stronger pace of sales is being driven by our internal efforts and initiatives across all our businesses and we also sense that market conditions are making a turn for the better,” said Prince. “Our operating margins and net earnings benefit from the additional revenue and our balance sheet also reflects this improvement.”
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