ATLANTA — Genuine Parts Co. (GPC) reported record sales and earnings for the second quarter and six months ended June 30. Tom Gallagher, chairman, president and chief executive officer, announced today that second quarter sales totaling $2.7 billion were up 8 percent compared to the second quarter of 2005. Net income was $120.7 million, an increase of 9 percent, compared to $111 million for the second quarter of 2005. On a per share diluted basis, net income was 70 cents, up 11 percent compared to 63 cents for the second quarter last year.
For the six months, sales totaled $5.2 billion, up 8 percent compared to the same period in 2005. Net income for the six months was $234.6 million, an increase of 8 percent over $217.6 million recorded in the previous year. Earnings per share on a diluted basis were $1.35, up 9 percent compared to $1.24 for the same period last year.
Gallagher stated, “We are pleased to report record sales and earnings for the second quarter of 2006. We continued to experience positive growth patterns in each of our four business segments. Motion Industries, our Industrial Group, grew sales by 10 percent and EIS, our Electrical Group, posted a 24 percent sales increase for the quarter. Business conditions remain strong for the industrial and electrical operations and we anticipate more good results from these groups in the second half of the year.
S.P. Richards, our office products group, generated a 6 percent sales increase for the quarter and the automotive group reported a 5 percent sales increase for the quarter. Our sales initiatives, combined with positive employment figures, GDP expansion and favorable aftermarket demographics, provide each of our segments with additional growth opportunities over the balance of 2006 and we anticipate solid performances from all four groups.”
Gallagher further commented, “The balance sheet at June 30, remains in excellent condition and we continue to strengthen our financial position through strong earnings growth as well as working capital and asset management initiatives. The company also continues to generate consistent and steady cash flows and our cash position remains strong. Our priorities for cash include the dividend, opportunistic share repurchases, the ongoing investment in each of our businesses and strategic bolt-on types of acquisitions. As part of our share repurchase program, we have purchased 2 million shares of our company stock in 2006.”
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