ATLANTA – Genuine Parts Co. (GPC) reported record sales and earnings for the third quarter and nine months ended Sept. 30, 2012. Thomas Gallagher, chairman and CEO, announced today that sales totaling $3.4 billion were up 3 percent compared to the third quarter of 2011. Net income for the quarter was $172.9 million, an increase of 14 percent from $151.8 million recorded in the same period of the previous year. Earnings per share on a diluted basis were $1.11, up 14 percent compared to 97 cents for the third quarter last year.
For the nine months ended Sept. 30, 2012, sales totaled $9.9 billion, up 5 percent compared to the same period in 2011. Net income for the nine months was $487.8 million, an increase of 13 percent from $430.2 million recorded in the previous year. Earnings per share on a diluted basis were $3.11, up 14 percent compared to $2.72 for the same period last year.
In review of the quarter, Gallagher commented, "We are pleased to report another quarter of record sales and earnings for Genuine Parts Co. After adjusting our sales results for one less selling day in the current quarter, total sales increased 4 percent from the third quarter of 2011. The Automotive Group reported a 2.5 percent sales increase and adjusted for the selling days, automotive sales were up 4 percent. Motion Industries, our Industrial Group, posted a 4.5 percent sales increase for the quarter and this reflects a 6 percent increase in sales on a daily basis. EIS, our Electrical Group, reported the strongest growth among our business segments, up 5 percent, or a 7 percent comparable sales increase. S. P. Richards, our Office Products Group, showed a 1 percent sales decrease for the quarter, which translates to a 1 percent increase in sales on a daily basis.
"Our balance sheet as of Sept. 30, 2012, remains in excellent condition and we continue to generate strong cash flows from increased earnings and working capital, asset management and cost reduction initiatives," he added. "Our cash position offers us tremendous opportunities, and we continue to use our cash in several key areas to maximize the total return to shareholders. Our priorities for cash include the dividends paid to shareholders, the ongoing reinvestment back into each of our four businesses, strategic acquisitions and share repurchases."
Gallagher concluded, "We are encouraged by the record level of sales and earnings achieved for the quarter. While disappointed with the slower sales growth over the past two quarters, we are performing in-line or better than the current growth in our respective industries. The company is well positioned to show continued growth in our businesses and we remain optimistic in our outlook for the fourth quarter of 2012 and beyond. Our management team remains committed to sustaining good revenue growth, further improving operating margins, generating solid cash flows and maintaining a strong balance sheet."
