Genuine Parts Company Reports Record Results for 2nd Quarter and 1st Half
21 July 2000
Genuine Parts Company Reports Record Results for Second Quarter and First Half Sales +6% and EPS +6% for Second Quarter
ATLANTA - Genuine Parts Company , reported record sales and earnings for the second quarter and six months ended June 30, 2000, Larry Prince, Chairman of the Board, announced today.During the quarter, sales increased 6% to $2.1 billion compared to $2.0 billion in the same period the prior year. Net income in the second quarter was $96.6 million, an increase of 4% over $92.6 million in the same quarter of 1999. On a per share diluted basis, net income for the quarter was $.55, an increase of 6% over the same quarter in the prior year of $.52.
For the six months ended June 30, 2000, sales totaled $4.2 billion, up 7% over the same period in 1999. Net income for the six months increased 5% to $188.3 million compared to $178.6 million for the same period in the prior year. On a per share diluted basis, net income for the period equaled $1.06, an increase of 7% over the 1999 amount of $.99.
Mr. Prince stated: "Our strongest sales performance for the quarter was produced by S. P. Richards, our Office Products Group, with a 10% improvement. Motion Industries, our Industrial Parts Group, continued their steady growth pattern with a 9% increase; and EIS, the Electrical/Electronics Group, followed closely with a 7% gain. Sales for the Automotive Parts Group were up 3%, reflecting the overall softness in the automotive aftermarket."
Mr. Prince commented: "Effective July 5, 2000, we completed the acquisition of M.B.S. Bearing Service, Inc., headquartered in Lachine, Quebec, Canada, and we are pleased that they will become a part of the Motion Industries Canadian organization. M.B.S. distributes a broad range of bearing and power transmission products. They currently operate 31 locations in Eastern Ontario, Quebec and the Maritimes, and in addition, they have one location in Plattsburg, New York. In business for 45 years, M.B.S. had annual sales of approximately $45 million in 1999, and they will greatly enhance our future development in the Canadian industrial market."
In conclusion, Mr. Prince stated: "As we look ahead, our priorities for the second half of 2000 will be twofold. First, we will be pushing hard to improve the sales picture in the Automotive Parts Group. Secondly, we will continue our efforts toward improving our overall operating margins with specific emphasis on our recent acquisitions."
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 Six Months
Ended June 30, Ended June 30,
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2000 1999 2000 1999
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(000 omitted except per share data)
Net sales $2,135,502 $2,022,894 $4,213,506 $3,924,251
Cost of goods sold 1,518,599 1,432,837 3,008,649 2,783,304
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616,903 590,057 1,204,857 1,140,947
Selling, administrative
& other expenses 456,076 436,798 891,301 845,194
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Income before
income taxes 160,827 153,259 313,556 295,753
Income taxes 64,234 60,690 125,234 117,118
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NET INCOME $ 96,593 $ 92,569 $ 188,322 178,635
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Basic net income
per common share $ .55 $ .52 $ 1.07 $ 1.00
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Diluted net income
per common share $ .55 $ .52 $ 1.06 $ .99
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Average common shares
outstanding 176,340 179,032 176,557 179,458
Dilutive effect of stock
options and non-vested
restricted stock awards 369 557 317 563
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Average common shares
outstanding -
assuming dilution 176,709 179,589 176,874 180,021
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