ATLANTA — Genuine Parts Co. (GPC) has reported sales and earnings for the first quarter ended March 31. 
GPC said sales totaling $2.4 billion were down 11 percent compared to the first quarter of 2008. Net income for the quarter was $89.2 million, a decrease of 28 percent over $123.5 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 56 cents, down 25 percent compared to 75 cents for the first quarter last year.
Thomas Gallagher, chairman, president and chief executive officer, commented, "It was a challenging quarter for us, as the effects of the slower economy impacted each of our four business segments. The Automotive Group and S. P. Richards, our Office Products Group, both reported a 7 percent sales decrease, while Motion Industries, our Industrial Group, reported a 16 percent sales decline in the quarter, and EIS, our Electrical Group, had a 25 percent decrease. Our Industrial and Electrical businesses sell to the manufacturing segment of the economy, which has experienced an overall slowdown in activity over the past several quarters.
"While we are not pleased with our first quarter operating results, the balance sheet at March 31, 2009, remains in excellent condition and we continue to strengthen our financial position through working capital and asset management initiatives, as well as steady and strong cash flows," Gallagher added. "We believe the use of our cash in several key areas, such as the dividend, opportunistic share repurchases, the ongoing investment in each of our businesses and strategic complimentary types of acquisitions, serves to maximize the total return to shareholders.
"The effects of the economic slowdown are likely to persist for several more quarters. Clearly, these are challenging times; however, our expectation is to show gradual improvement in our overall results as the year progresses," Gallagher added. "The management teams in each of our business segments are focused on the diligent execution of their respective growth and operating strategies, the prudent management of their cost structure and the continued emphasis on further strengthening our balance sheet."
