Genuine Parts Company Reports Record Results for Second Quarter and First Half
22 July 1999
Genuine Parts Company Reports Record Results for Second Quarter and First Half
ATLANTA--July 21, 1999--Genuine Parts Company , reported record sales and earnings for the second quarter and six months ended June 30, 1999, Larry Prince, Chairman of the Board, announced today.
During the quarter, sales increased 25% to $2.0 billion compared to $1.6 billion in the same period the prior year. Net income in the second quarter was $92.6 million, an increase of 8% over $85.9 million in the same quarter of 1998. On a per share diluted basis, net income for the quarter was $.52, an increase of 8% over the same quarter in the prior year of $.48.
For the six months ended June 30, 1999, sales totaled $3.9 billion, up 24% over the same period in 1998. Net income for the six months increased 8% to $179 million compared to $166 million for the same period in the prior year. On a per share diluted basis, net income for the period equaled $.99, an increase of 8% over the 1998 amount of $.92.
Mr. Prince stated: "Our 25% sales increase is greatly enhanced by several acquisitions we have made in the last year and we are pleased to see this. Existing operations prior to acquisitions grew 6% for the quarter and for the six-month period. Looking at the current sales picture, Industrial sales at Motion Industries showed stronger improvement in the second quarter at +7% but are still not at the 8% to 10% levels we need for best profit results. Our core NAPA Automotive Parts Group grew by 4% in the second quarter after several quarters of growth in the +7% range and this is reflective of the general softness in the automotive aftermarket. The Office Products Group, S. P. Richards, posted an 11% sales increase for the quarter, an improvement over the 7% growth in the previous quarter. Sales for EIS, the Electrical/Electronics Group, were $130 million in the quarter and were all incremental sales since this acquisition took effect July 1, 1998. Their sector is also a difficult one currently but we have confidence in their growth plans looking ahead."
Mr. Prince concluded: "We feel that we will continue to report sales and earnings growth in the final half of 1999 and our fundamentals are strong and in place. We also recognize that our markets are a bit softer than expected and this will require additional sales aggressiveness on our part. Our balance sheet remains in excellent shape and we continue to be active in our share repurchase program, having purchased 1.7 million shares during the first half of 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 Six Months Ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
(000 omitted except per share data)
Net sales $2,022,894 $1,619,383 $3,924,251 $3,152,521
Cost of goods sold 1,432,837 1,141,980 2,783,304 2,228,382
--------- --------- --------- ---------
590,057 477,403 1,140,947 924,139
Selling, administrative
& other expenses 436,798 335,446 845,194 649,954
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Income before income
taxes 153,259 141,957 295,753 274,185
Income taxes 60,690 56,073 117,118 108,303
------ ------ ------- -------
NET INCOME $ 92,569 $ 85,884 $ 178,635 $ 165,882
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Basic net income per
common share $ .52 $ .48 $ 1.00 $ .93
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Diluted net income per
common share $ .52 $ .48 $ .99 $ .92
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Average common shares
outstanding 179,032 178,859 179,458 178,840
Dilutive effect of stock
options and non-vested
restricted stock awards 557 588 563 624
--- --- --- ---
Average common shares
outstanding - assuming
dilution 179,589 179,447 180,021 179,464
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