Genuine Parts Company Reports Record First Quarter Results
20 April 1999
Genuine Parts Company Reports Record First Quarter Results
ATLANTA--April 20, 1999--Genuine Parts Company reported record sales and earnings for the first quarter ended March 31, 1999.
Larry Prince, Chairman of the Board, announced today that sales increased 24% to $1.9 billion compared to $1.5 billion in the same period the prior year. Net income was $86.1 million, an increase of 8% over $80 million for the first quarter of 1998. On a per share diluted basis, net income equaled 48 cents versus 45 cents for the year earlier period, for an increase of 7%.
Prince stated: "Our results for the first period of 1999 are most encouraging with all four of our industry groups contributing nicely. The Automotive Parts Group had a strong quarter with sales increasing 27% over last year's quarter. Our existing NAPA Auto Parts Group was up 7% with Johnson Industries and UAP adding the balance. Motion Industries, our Industrial Parts Group, improved sales almost 5% in a very reticent marketplace. Our Office Products Group, S.P. Richards, had an increase of 7% for the quarter reflecting a nice trend of improvement for them in recent months. EIS, our Electrical/Electronic Materials Group that was acquired July 1, 1998, contributed $127 million in sales during the first quarter. EIS holds a great deal of promise for GPC as a fourth dimension for our future growth."
Prince concluded: "While we expect to make continued sales progress for the balance of 1999, we also plan to continue to focus our efforts on tight expense controls. Our financial condition remains excellent and we are encouraged about the prospects for a good 1999."
Genuine Parts Company is a distributor of automotive replacement parts, industrial replacement parts, office products, and electronic and electrical components from operations in the United States, Canada, and Mexico.
GENUINE PARTS COMPANY and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended March 31,
1999 1998
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(in thousands, except per share data)
Net Sales $1,901,357 $1,533,138
Cost of goods sold 1,350,467 1,086,402
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550,890 446,736
Selling, administrative & other expenses 408,396 314,508
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Income before income taxes 142,494 132,228
Income taxes 56,428 52,230
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NET INCOME $86,066 $79,998
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Basic net income per common share $ .48 $ . 45
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Diluted net income per common share $ .48 $ . 45
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Average common shares outstanding 179,784 178,822
Dilutive effect of stock options and
non-vested restricted stock awards 508 733
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Average common shares outstanding -
assuming dilution 180,292 179,555
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