Genuine Parts Company Reports Record Sales and Earnings for Q3
21 October 1999
Genuine Parts Company Reports Record Sales and Earnings for Third Quarter and Nine Months
Business Editors & Automotive/Retail Writers
ATLANTA--Oct. 20, 1999--Genuine Parts Company
, reported record sales and earnings for the third quarter
ended September 30, 1999. Larry Prince, Chairman of the Board,
announced today.
During the quarter sales increased 18% to $2.08 billion compared
to $1.76 billion in the same period the prior year. Net income in the
third quarter was $91 million, an increase of 5% over $86 million in
the same quarter of 1998. On a per share diluted basis, net income for
the quarter was $.51, an increase of 6% over the same quarter in the
prior year of $.48.
For the nine months ended September 30, 1999, sales totaled $6.0
billion, up 22% over the same period in 1998. Net income for the nine
months increased 7% to $269 million compared to $252 million for the
same period the prior year. On a per share diluted basis, net income
for the period equaled $1.50, an increase of 7% over the 1998 amount
of $1.40.
Mr. Prince commented, "Sales for the Automotive Parts Group were
up 25% for the quarter including UAP and Johnson Industries, both
acquisitions whose results were not reflected in the quarter last
year. The core NAPA automotive parts business was up 3% for the
quarter with the total U.S. automotive aftermarket continuing its
pattern of slow growth. We have no way to judge when the aftermarket
will improve but we are persuaded that it will, given the positive
fundamentals that drive aftermarket business. In the meantime, we are
well positioned to continue our share gain with the strength of NAPA's
marketing programs and the additional development of Johnson
Industries. The three remaining segments of GPC reported double digit
revenue increases for the quarter, which we were pleased to see. The
Motion Industries Industrial Group posted an 11% increase in a market
environment that is showing gradual improvement. S. P. Richards, our
Office Products Group, increased their sales by 10% for the quarter
and EIS, our Electrical/Electronics Group, reported a strong 16%
improvement."
Mr. Prince concluded: "We are pleased with the care and skill our
managers and employees have exhibited in the assimilation of more than
$1.3 billion in new revenue through acquisitions over the past 16
months. We are looking forward to the revenue and profit opportunity
ahead of us with these new additions to GPC. Gradual margin
improvement will be seen as we gain more experience and work more
closely with these new companies. It is also important to mention that
this growth initiative has been accomplished with no major
restructuring charges and our excellent balance sheet remains in
place. In summary, we had a good quarter and at the end of nine months
all four business segments are contributing to our success. We look
forward to reporting another year of record sales and profits as we
enter the final quarter of 1999."
Genuine Parts Company is a distributor of automotive replacement
parts in the U.S., Canada and Mexico. The Company also distributes
industrial replacement parts in the U.S., Canada and Mexico through
its Motion Industries subsidiary. S. P. Richards Company, the Office
Products Group, distributes product nationwide in the U.S. and in
Western Canada. The Electrical/Electronic Group, EIS, Inc.,
distributes electrical and electronic components throughout the U.S.
and Mexico. Genuine Parts Company had 1998 revenues of $6.6 billion
and net income of $355.8 million.
Various statements in this release may constitute forward-looking
statements. Actual results may differ materially from those indicated
as a result of various important factors, which are discussed in
Genuine Parts Company's most recent Annual Report on Form 10-K, and
other filings with the Securities and Exchange Commission.
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GENUINE PARTS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended September 30,
1999 1998
------------ ------------
(000 omitted except per share data)
Net sales $ 2,082,229 $ 1,760,102
Cost of goods sold 1,479,065 1,245,677
------------ ------------
603,164 514,425
Selling, administrative &
other expenses 453,103 371,929
------------ ------------
Income before income taxes 150,061 142,496
Income taxes 59,424 56,357
------------ ------------
NET INCOME $ 90,637 $ 86,139
============ ============
Basic net income per common
share $ .51 $ .48
============ ============
Diluted net income per common
share $ .51 $ .48
============ ============
Average common shares
outstanding 178,546 180,392
Dilutive effect of stock
options and non-vested
restricted stock awards 480 794
------------ ------------
Average common shares
outstanding - assuming
dilution 179,026 181,186
============ ============
Nine Months Ended September 30,
1999 1998
------------ ------------
(000 omitted except per share data)
Net sales $ 6,006,480 $ 4,912,623
Cost of goods sold 4,262,369 3,474,059
------------ ------------
1,744,111 1,438,564
Selling, administrative &
other expenses 1,298,297 1,021,883
------------ ------------
Income before income taxes 445,814 416,681
Income taxes 176,542 164,660
------------ ------------
NET INCOME $ 269,272 $ $252,021
============ ============
Basic net income per common
share $ 1.50 $ 1.41
============ ============
Diluted net income per common
share $ 1.50 $ 1.40
============ ============
Average common shares
outstanding 179,143 179,363
Dilutive effect of stock
options and non-vested
restricted stock awards 534 641
------------ ------------
Average common shares
outstanding - assuming
dilution 179,677 180,004
============ ============
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