ATLANTA — Genuine Parts Co. reported record sales and earnings for the second quarter and six months ended June 30.
Thomas Gallagher, chairman, president and chief executive officer, announced today that sales totaling $2.87 billion were up 4 percent compared to the second quarter of 2007. Net income for the quarter was $133.1 million, an increase of 2 percent over $130.1 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 81 cents, up 7 percent compared to 76 cents for the second quarter last year.
For the six months ended June 30, sales totaled $5.61 billion, up 4 percent compared to the same period in 2007. Net income for the six months was $256.6 million, an increase of 2 percent over $251.7 million recorded in the previous year. Earnings per share on a diluted basis were $1.56, up 6 percent compared to $1.47 for the same period last year.
Gallagher stated, “We are pleased to report that the second quarter of 2008 was another period of steady and consistent sales and earnings growth for Genuine Parts Co. EIS, our electrical group, once again generated the strongest sales growth among our four business segments. They were up 11 percent in the quarter and this follows a 7 percent increase in the first quarter. Motion Industries, our industrial group, is also putting together a fine year, with their sales increasing 7 percent for the quarter following a 6 percent sales increase last quarter. We expect to see both EIS and Motion continue their positive sales trends over the last half of the year. The automotive group reported a 2 percent sales increase for the quarter and S.P. Richards, our office products group, reported flat sales relative to the second quarter last year. The automotive and office products segments continue to feel the impact of sluggish macro economic conditions. That said, we are optimistic that both of these businesses can show more progress over the balance of the year, despite this difficult environment.”
Gallagher added, “The balance sheet at June 30, 2008 remains in excellent condition and we continue to strengthen our financial position and generate strong cash flows. Our key priority for cash remains the dividend, which was increased to $1.56 per share for 2008 and is currently yielding approximately 4 percent. Additional priorities include opportunistic share repurchases, the ongoing reinvestment in our four business segments and strategic complimentary types of acquisitions. We believe our use of cash in these areas serves to maximize the total return to shareholders.”
Gallagher concluded, “At the midpoint of the year, we continue to operate in an uncertain and challenging economic environment. We are fortunate, however, to see additional opportunities for improvement in each of our business segments, despite the external challenges, through the consistent execution of our growth and operational strategies, as well as through our ongoing initiatives to further strengthen our balance sheet. These three areas of focus remain our top priorities as we enter the second half of the year.”
