Genuine Parts Company Reports Record Results for 1998
17 February 1999
Genuine Parts Company Reports Record Results for 1998
ATLANTA--Feb. 16, 1999--49 Consecutive Years of Increased Sales and 38 Consecutive
Years of Increased Earnings
Genuine Parts Company completed its 71st year in operation with record sales and earnings for the fourth quarter and the year ended December 31, 1998.
Sales in 1998 increased 10% to $6.6 billion compared with $6.0 billion in 1997. Net income rose to $356 million, up 4% over the $342 million recorded the prior year. Earnings in 1998 equaled $1.98 per share versus $1.90 per share in 1997.
Larry Prince, Chairman of the Board of Directors, said: "We are fortunate to report another year of record sales and earnings. We were able to record increases in each of our business segments. Each of these segments is a leader in their respective industries and we believe the diversity makes us a stronger company. Our NAPA Automotive Parts Group was able to post an increase of 6%, in a difficult year for the automotive aftermarket. Motion Industries, our Industrial Parts Group, had another good year by reflecting a gain of 8%. S. P. Richards, our Office Products Group, had a sluggish sales year with an increase of 4%. EIS, Inc., our Electrical/Electronics Group, showed good progress following the acquisition effective July 1, 1998."
In the fourth quarter ended December 31, 1998, sales advanced 15% to $1.7 billion versus $1.5 billion for the comparable period one year earlier. Net income in the fourth quarter of 1998 increased 6% to $103.8 million or 58 cents per share versus $98.3 million or 55 cents per share in the fourth quarter of 1997.
Mr. Prince concluded: "The Company's financial condition remains sound and our Balance Sheet continues to be strong. For the year, capital expenditures amounted to $88 million, working capital increased 21%, and current assets were 3.3 times current liabilities. We remain active in our share repurchase program and purchased approximately 2.3 million shares in 1998. We believe the acquisitions we made in 1998 have positioned us to improve our growth rate going forward."
Genuine Parts Company is a distributor of automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials from operations in the United States, Canada and Mexico.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Quarter Ended For the Year Ended
December 31 December 31
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1998 1997 1998 1997
---- ---- ---- ----
(in thousands, except per share data)
Net Sales $1,701,409 $1,481,367 $6,614,032 $6,005,245
Cost of goods sold 1,137,466 993,118 4,611,525 4,178,642
---------- ---------- ---------- ----------
563,943 488,249 2,002,507 1,826,603
Selling,
administrative
& other expenses 391,507 325,992 1,413,390 1,261,003
---------- ---------- ---------- ----------
Income before income
taxes 172,436 162,257 589,117 565,600
Income taxes 68,663 63,908 233,323 223,203
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NET INCOME $ 103,773 $ 98,349 $ 355,794 $ 342,397
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Basic net income
per common share $ .58 $ .55 $ 1.98 $ 1.91
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Diluted net income
per common share $ .58 $ .55 $ 1.98 $ 1.90
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Average common
shares outstanding 179,574 178,972 179,416 179,592
Dilutive effect of
stock options
and non-vested
restricted stock
awards 733 549 665 573
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Average common
shares outstanding
- Assuming dilution 180,307 179,521 180,081 180,165
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