Genuine Parts Co. Reports Q2 Results
22 July 1998
Genuine Parts Company Reports Record Results for Second Quarter and First Half
ATLANTA--July 22, 1998--
Sales +7% Net Income +3% EPS +4% For 2nd Quarter
Genuine Parts Company , reported record sales and earnings for the second quarter and six months ended June 30, 1998, Larry Prince, Chairman of the Board, announced today.
During the quarter, sales increased 7% to $1.6 billion compared to $1.5 billion in the same period the prior year. Net income in the second quarter was $86 million, an increase of 3% over $84 million in the same quarter of 1997. On a per share diluted basis, net income for the quarter was $.48, an increase of 4% over the same quarter in the prior year of $.46.
For the six months ended June 30, 1998, sales totaled $3.15 billion, up 6% over the same period in 1997. Net income for the six months increased 3% to $166 million compared to $160 million for the same period in the prior year. On a per share diluted basis, net income for the period equaled $.92, an increase of 3% over the 1997 amount of $.89.
Mr. Prince stated: "Our sales picture showed some improvement as the quarter progressed, which is encouraging. Looking at each of our three segments, the Industrial Parts Group again showed excellent sales growth with an increase of 11%. The Automotive Parts Group posted their strongest quarter in quite some time with a 7% increase. Sales at S.P. Richards, our Office Products Group, remained sluggish in the quarter with an increase of 2%. As we begin the third quarter, the prospects for continued sales improvement appear to be positive."
Mr. Prince concluded: "We are pleased with the position of each of our business groups at this time and our financial condition remains strong. We anticipate another year of record sales and profit for our Company."
Genuine Parts Company is a distributor of automotive replacement parts, industrial replacement parts and office products from operations in the United States, Canada and Mexico.
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
--------- --------- --------- ---------
(000 omitted except per share data)
Net sales $1,619,383 $1,510,456 $3,152,521 $2,968,102
Cost of goods sold 1,141,980 1,065,336 2,228,382 2,093,715
--------- --------- --------- ---------
477,403 445,120 924,139 874,387
Selling, administrative
& other expenses 335,446 306,705 649,954 609,410
--------- --------- --------- ---------
Income before income
taxes 141,957 138,415 274,185 264,977
Income taxes 56,073 54,674 108,303 104,641
--------- --------- --------- ---------
NET INCOME $ 85,884 $ 83,741 $ 165,882 $ 160,336
Basic net income per
common share $ .48 $ .47 $ .93 $ .89
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Diluted net income per
common share $ .48 $ .46 $ .92 $ .89
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Average common shares
outstanding 178,859 180,018 178,840 179,980
Dilutive effect of
stock options and
non-vested restricted
stock awards 588 734 624 724
--------- --------- --------- ---------
Average common shares
outstanding - assuming
dilution 179,447 180,752 179,464 180,704
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