Genuine Parts Company Reports Sales and Earnings for Q2 and First Half
ATLANTA--July 18, 2001--Genuine Parts Company reported sales and earnings for the second quarter and six months ended June 30, 2001.Larry Prince, Chairman of the Board of Directors, announced today that sales totaling $2.1 billion were essentially flat compared to the second quarter of 2000. Net income was $94.7 million, compared to $96.6 million for the second quarter of 2000. On a per share diluted basis, net income equaled 55 cents, even with the comparable quarter of the prior year.
During the six months ended June 30, 2001, sales totaled $4.2 billion, down slightly as compared to the same period in 2000. Net income for the six months was $184 million compared to $188 million for the same period in the prior year. On a per share diluted basis, net income for the period equaled $1.06, even with the comparable period of the prior year.
Prince stated: "Our Office Products Group led all segments with sales growth of 4%. While their growth rate has slowed we believe this is a strong performance relative to their industry's total picture. We were encouraged by the 3% sales increase for the Automotive Parts Group. This follows three quarters of flat or negative growth numbers for this Group and we sense that the automotive aftermarket is starting to show slight improvement. This is our largest single business segment and we are pleased to see this positive development for the quarter."
Prince further commented: "Our Industrial and Electrical/Electronic Groups continue to cope with the effects of reduced plant activity among manufacturers across the U.S. and Canada. Motion's sales were down 3% which follows a 2% decline in the first quarter. This organization is a strong one, giving excellent service to their diverse customer base. We expect to see them return to their positive, historical growth rates as our economy makes its recovery. EIS is more severely impacted with its large OEM customer segment in the electrical and electronics industries. Their sales were down 31% for the quarter as inventories of electrical and electronics finished goods in the supply chain are being reduced to match current demands. Here again, we expect EIS to resume a more normal growth rate in the months ahead as they broaden their customer base and market conditions improve."
Prince concluded: "We are continuing to hold our own in an extremely tough marketplace. Our diversity helps us escape the volatility affecting many others today and for that we are thankful. With that said, we are never pleased when our results are not above the previous year. The efforts of the total GPC team in the second half of 2001 will be intensely directed toward finishing the year with improved sales and earnings, and keeping our long growth record intact."
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three month period Six month period
ended June 30, ended June 30,
2001 2000 (1) 2001 2000 (1)
-------------------- --------------------
(000 omitted except per share data)
Net sales $ 2,118,976 $ 2,129,377 $ 4,173,948 $ 4,200,369
Cost of goods sold 1,475,999 1,479,706 2,907,812 2,930,646
--------- --------- --------- ---------
642,977 649,671 1,266,136 1,269,723
Selling, administrative
& other expenses 485,164 488,844 959,534 956,167
--------- --------- --------- ---------
Income before income
taxes 157,813 160,827 306,602 313,556
Income taxes 63,125 64,234 122,641 125,234
--------- --------- --------- ---------
NET INCOME $ 94,688 $ 96,593 $ 183,961 $ 188,322
========= ========= ========= =========
Basic net income per
common share $ .55 $ .55 $ 1.07 $ 1.07
==== ==== ==== ====
Diluted net income
per common share $ .55 $ .55 $ 1.06 $ 1.06
==== ==== ==== ====
Average common shares
outstanding 172,483 176,340 172,286 176,557
Dilutive effect of
stock options and
non-vested restricted
stock awards 878 369 810 317
---- ---- ---- ----
Average common shares
outstanding -
assuming dilution 173,361 176,709 173,096 176,874
======= ======= ======= =======
(1): The financial statements for 2000 have been reclassified in
connection with the Company's fourth quarter 2000 adoption of new
accounting pronouncements related to the income statement
classification of freight billed to customers and other discounts
and incentives. These reclassifications had no effect on net income.
GENUINE PARTS COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
--------------------------------------------
(Unaudited)
Three month period Six month period
ended June 30, ended June 30,
2001 2000 2001 2000
-------------------- --------------------
(in thousands)
Net sales:
Automotive $ 1,121,981 $ 1,085,836 $ 2,104,805 $ 2,091,146
Industrial 572,114 590,416 1,156,043 1,184,764
Office Products 333,143 319,450 703,862 657,034
Electrical/Electronic
Materials 96,962 139,800 221,647 280,562
Other (1) (5,224) (6,125) (12,409) (13,137)
--------------------- ---------------------
Total net sales $ 2,118,976 $ 2,129,377 $ 4,173,948 $ 4,200,369
====================== ======================
Operating profit (2):
Automotive $ 109,807 $ 104,455 $ 191,774 $ 189,445
Industrial 44,047 48,028 89,269 97,842
Office Products 30,073 28,040 73,705 66,113
Electrical/Electronic
Materials 1,639 6,938 6,844 13,271
--------------------- ---------------------
Total operating
profit 185,566 187,461 361,592 366,671
Interest expense (15,097) (16,023) (30,782) (31,182)
Other, net (12,656) (10,611) (24,208) (21,933)
--------------------- ---------------------
Income before
income taxes $ 157,813 $ 160,827 $ 306,602 $ 313,556
====================== ======================
Capital
expenditures $ 11,456 $ 14,491 $ 23,570 $ 34,388 ========= ======= ======= =======
========= ========== ========= =========
Depreciation and
amortization $ 24,104 $ 23,550 $ 47,142 $ 47,374
========= ========== ========= =========
EBITDA $ 197,014 $ 200,400 $ 384,526 $ 392,112
========= ========== ========= =========
Current ratio 3.1 3.0
=== ===
(1) Represents the net effect of discounts, incentives and freight
billed reported as a component of net sales based on accounting
pronouncements adopted in fourth quarter 2000.
(2) In connection with a 2000 management reporting change, certain
corporate expenses were reclassified to the Automotive segment
for second quarter 2000.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
------
June 30, June 30,
2001 2000
---------------------------------
(Unaudited)
(in thousands)
CURRENT ASSETS
Cash and cash equivalents $ 45,685 $ 53,224
Trade accounts receivable 1,131,433 1,122,953
Inventories 1,796,781 1,733,618
Prepaid and other current accounts 58,896 42,255
--------- ---------
TOTAL CURRENT ASSETS 3,032,795 2,952,050
Goodwill 453,448 432,200
Other assets 294,270 228,629
Total property, plant and
equipment, net 370,725 408,754
--------- ---------
TOTAL ASSETS $4,151,238 $4,021,633
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable $ 628,618 $ 663,024
Current portion long-term debt
and other borrowings 198,046 170,304
Income taxes 22,168 18,553
Dividends payable 49,185 48,599
Other current liabilities 81,556 76,453
--------- ---------
TOTAL CURRENT LIABILITIES 979,573 976,933
Long-term debt 709,939 699,813
Deferred income taxes 72,859 87,466
Minority interests in subsidiaries 45,664 44,251
Common stock 172,589 174,954
Retained earnings and other 2,170,614 2,038,216
--------- ---------
TOTAL SHAREHOLDERS' EQUITY 2,343,203 2,213,170
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $4,151,238 $ 4,021,633
========= =========