Genuine Parts Company Reports Record Sales and Earnings for Q3
21 October 1998
Genuine Parts Company Reports Record Sales and Earnings for Third Quarter and Nine Months
ATLANTA--Oct. 21, 1998--Genuine Parts Company , reported record sales and earnings for the third quarter ended September 30, 1998. Larry Prince, Chairman of the Board, announced today.During the quarter sales increased 13% to $1.76 billion compared to $1.56 billion in the same period the prior year. Net income in the third 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 2% over the same quarter in the prior year of $.47.
For the nine months ended September 30, 1998, sales totaled $4.9 billion, up 9% over the same period in 1997. Net income for the nine months increased 3% to $252 million compared to $244 million for the same period the prior year. On a per share diluted basis, net income for the period equaled $1.40, an increase of 4% over the 1997 amount of $1.35.
Mr. Prince stated: "We are pleased to include EIS in our results for the first time. As we previously announced, this acquisition was effective June 30, 1998 and was treated on a purchase accounting basis. Our sales increase for the quarter excluding EIS would have been 6%. On the acquisition front, we are pleased to report new additions to both our Industrial and Office Products Groups. S. P. Richards, our office products company, recently acquired Norwestra Sales, Inc., a privately held company located in Vancouver, British Columbia, Canada. This is S. P. Richards' first operation in Canada and is expected to be the foundation for future growth and a national presence in the Canadian market. In our Industrial Group, Motion Industries has completed two regional acquisitions with combined revenues of approximately $20 million annually. Hub Supply, Inc. located in Wichita, Kansas and Blytheville Bearing and Supply in Blytheville, Arkansas were privately held companies, and these were cash transactions taking place on October 1, 1998."
Mr. Prince concluded: "All of our business groups reported sales increases for the quarter, but each of our markets are feeling the impact of the slowing economy. Sales for the Automotive Parts Group were up 5%, Office Products were also ahead 5%, and our Industrial Parts Group increased 8%. Relative to industry growth, these are respectable numbers but not up to our target levels. We will be pushing aggressively to improve this picture."
Genuine Parts Company, headquartered in Atlanta, Georgia, is engaged in the distribution of automotive replacement parts from 62 NAPA Distribution Centers serving approximately 5,600 NAPA Auto Parts Stores nationwide, in Canada through its joint venture, NAPA/UAP, and in Mexico through its joint venture, Grupo Auto Todo. The company also distributes industrial replacement parts in the U.S. and Canada through its Motion Industries subsidiary and office supply products nationwide through its office products subsidiary, S. P. Richards Company. EIS, Inc. distributes electrical and electronic components from 56 stocking facilities located throughout the United States.
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
1998 1997 1998 1997
---- ---- ---- ----
(000 omitted except per share data)
Net sales $1,760,102 $1,555,776 $4,912,623 $4,523,878
Cost of goods sold 1,245,677 1,091,809 3,474,059 3,185,524
---------- ---------- ---------- ----------
514,425 463,967 1,438,564 1,338,354
Selling,
administrative &
other expenses 371,929 325,601 1,021,883 935,011
---------- ---------- ---------- ----------
Income before income
taxes 142,496 138,366 416,681 403,343
Income taxes 56,357 54,654 164,660 159,295
---------- ---------- ---------- ----------
NET INCOME $ 86,139 $ 83,712 $ 252,021 $ 244,048
========== ========== ========== ==========
Basic net income per
common share $ .48 $ .47 $ 1.41 $ 1.36
Diluted net income
per common share $ .48 $ .47 $ 1.40 $ 1.35
Average common shares
outstanding 180,392 179,447 179,363 179,800
Dilutive effect of
stock options and
non-vested
restricted stock
awards 794 577 641 675
========== ========= ========== ==========
Average common shares
outstanding -
assuming dilution 181,186 180,024 180,004 180,475
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