ATLANTA — Genuine Parts Co. reported sales and earnings for the second quarter and six months, which ended on June 30.
Sales totaling $2.3 billion were up 7 percent compared to the second quarter of 2003. Net income was $101.1 million, an increase of 12 percent, compared to $90.1 million for the second quarter of 2003. On a per share diluted basis, net income was 58 cents, up 12 percent compared to 52 cents for the second quarter last year.
For the six months which ended on June 30, sales totaled $4.5 billion, up 8 percent compared to the same period in 2003. Net income for the six months was $201.3 million, an increase of 13 percent over $178.6 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 $1.15, up 13 percent compared to $1.02 for the same period 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 six months ended June 30, 2004 was up 27 percent and diluted earnings per share were up 26 percent compared to the six months ended June 30, 2003.
Larry Prince, chairman of the board, commented: “Our second quarter results continued the positive direction established in the first quarter with both sales and earnings reaching record levels. We were again pleased to see each of our four business segments contribute to our success in the quarter.
“We have a number of positives working for us as we move into the second half of 2004. The diversity of our Company in four sound industries gives us great balance and we expect to see continued improvement. Our Balance Sheet remains in excellent shape to support the continued growth ahead of us and we believe the final half of 2004 will be a good one for Genuine Parts Company.”
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