Genuine Parts Company Fourth Quarter Results to Meet Consensus Estimates Before Non-Recurring Charges

    ATLANTA--Jan. 23, 2002--Genuine Parts Company announced today that it expects fourth quarter earnings before non-recurring charges to be in line with the Thomson/First Call consensus estimate of $.51 per share.
    The Company also announced that it will record a pre-tax non-recurring charge of approximately $90 to $100 million in the fourth quarter ended December 31, 2001. The after-tax effect for these charges is $54 to $60 million, or $.30 to $.34 per share. This charge will consist of $30 to $35 million for expenses related to facilities consolidation, approximately $45 million to write down several technology investments and $15 to $20 million for inventory related exit costs.
    "We are working diligently to further align our costs with current business conditions. With the continued sales softness resulting from the economy, we feel these actions will better position us for improved earnings growth in the future. We are continuing to work on increasing efficiencies, strengthening our competitive position, improving our return on invested capital and maintaining the highest levels of customer service. We continue to maintain a strong balance sheet and cash flow position," said Larry L. Prince, Chairman and Chief Executive Officer.
    "Management remains committed to our dividend record of 45 consecutive years of dividend increases. We intend to support this program and will be recommending an increase in the dividend to our Board of Directors at our February 18, 2002 Board meeting," said Larry L. Prince.
    The Company said it expects 2002 earnings per share of $2.10 to $2.15, excluding the impact of a new accounting rule related to the accounting for goodwill and other intangible assets.
    Genuine Parts Company will report fourth quarter and year-end results on Tuesday, February 19, 2002 and will host a conference call that day at 11:00 a.m. EST to discuss the results and the outlook for 2002. Participants may access this call by dialing 800-482-5547, conference ID number 1454237. A replay will be available at 800-625-5288, ID 1454237, through February 26, 2002 at 6:00 p.m. EST.

    Forward Looking Statements

    Statements in this release constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that its forward-looking statements involve risks and uncertainties. The Company undertakes no duty to update its forward-looking statements, which reflect the Company's beliefs, expectations, and plans as of the present. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors include, but are not limited to, changes in general economic conditions, the growth rate of the market for the Company's products and services, the ability to maintain favorable supplier arrangements and relationships, competitive product and pricing pressures, the effectiveness of the Company's promotional, marketing and advertising programs, changes in laws and regulations, including changes in accounting and taxation guidance, the uncertainties of litigation, as well as other risks and uncertainties discussed from time to time in the Company's filings with the Securities and Exchange Commission.

    About Genuine Parts Company

    Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada and Mexico. The Company also distributes industrial replacement parts in the U.S., Canada and Mexico through its Motion Industries subsidiary. S.P. Richards Company, the Office Products Group, distributes product nationwide in the U.S. and in Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S. and Mexico.