GPC Reports Increased Third Quarter Sales and Earnings

Genuine Parts Company (GPC) has reported increased sales and earnings for the third quarter and nine months ended Sept. 30. Thomas Gallagher, chairman, president and chief executive officer, announced that sales totaling $2.8 billion were up 4 percent compared to the third quarter of 2006. Net income for the quarter was $128.6 million, an increase of 6 percent over $121.3 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 76 cents, up 7 percent compared to 71 cents for the third quarter last year.

ATLANTA — Genuine Parts Company (GPC) has reported increased sales and earnings for the third quarter and nine months ended Sept. 30. Thomas Gallagher, chairman, president and chief executive officer, announced that sales totaling $2.8 billion were up 4 percent compared to the third quarter of 2006. Net income for the quarter was $128.6 million, an increase of 6 percent over $121.3 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 76 cents, up 7 percent compared to 71 cents for the third quarter last year.

For the nine months, sales totaled $8.22 billion, up 4 percent compared to the same period in 2006. Net income for the nine months was $380.3 million, an increase of 7 percent over $355.9 million recorded in the previous year. Earnings per share on a diluted basis were $2.23, up 8 percent compared to $2.06 for the same period last year.

Commenting on the results, Gallagher said, “We are pleased to report that the third quarter of 2007 was another period of steady and consistent sales and earnings growth for Genuine Parts Company. Motion Industries, our Industrial Group, once again generated the strongest revenue increase. They increased their sales 7 percent in the quarter and they continue to grow nicely. EIS, our Electrical Group, was up 4 percent, followed by Automotive, up 3 percent and Office Products up slightly, at .3 percent. The Automotive and Office Products segments continue to encounter sluggish business conditions, but we remain optimistic about their ability to show further improvement in the fourth quarter.”

Gallagher added, “The balance sheet at September 30, 2007 remains in excellent condition and we continue to strengthen our financial position through steady and consistent earnings growth as well as through working capital and asset management initiatives. The company also continues to generate superior cash flows and our cash position remains strong.

“As we enter the fourth quarter, we are pleased to be in a position to report another year of steady and consistent sales and earnings growth for Genuine Parts Company. Our focus in the final quarter continues to be on the execution of our growth and operational strategies in each of our businesses, as well as our ongoing initiatives to further strengthen the balance sheet.”