Genuine Parts Company Reports Results for Q3 and First Nine Months
18 October 2000
Genuine Parts Company Reports Record Results for Third Quarter and First Nine Months Sales +4% and EPS +4% for Third Quarter Sales +6% and EPS +6% for Nine Months
ATLANTA--Oct. 18, 2000--Genuine Parts Company , reported record sales and earnings for the third quarter and nine months ended September 30, 2000, Larry Prince, Chairman of the Board, announced today.During the quarter, sales increased 4% to $2.2 billion compared to $2.1 billion in the same period of the prior year. Net income in the third quarter was $91.7 million, versus $90.6 million in the same quarter of 1999. On a per share diluted basis, net income for the quarter was $.53, an increase of 4% over the same quarter in the prior year of $.51.
For the nine months ended September 30, 2000, sales totaled $6.4 billion, up 6% over the same period in 1999. Net income for the nine months was $280.0 million compared to $269.3 million for the same period in the prior year. On a per share diluted basis, net income for the period equaled $1.59, an increase of 6% over the 1999 amount of $1.50.
Mr. Prince commented: "Our greatest challenge continues to be the general softness affecting the total automotive aftermarket sector. We initially felt this toward the latter part of our first quarter, and sales in our automotive group continue to be below our expectations. For the quarter our automotive sales were down 1% while the balance of our business segments performed well. Motion Industries, our Industrial Group, led with a 10% increase for the quarter followed by S.P. Richards with 9% growth in the Office Products Group. EIS, our Electrical/Electronics Group, completed the quarter with 6% growth.
We are grateful for the diversity of our Company and the balance it gives us is evidenced by our current circumstances. We believe our Industrial, Office Products and Electrical/Electronics Groups should continue to show solid growth, and they continue to do a splendid job in their respective markets. We have no way to judge when the automotive aftermarket may start to improve and move back to a more normal 3% to 4% market growth. Based on market fundamentals we believe this will happen but we recognize that our NAPA sales initiatives must deal more effectively with the market as it currently exists. We believe we can do better and it is our commitment to do so."
Mr. Prince concluded: "In closing these remarks, I must say that we expect the fourth quarter to be a difficult one much like the quarter just completed. Our non-automotive groups will perform well but the automotive parts business remains a challenge. We will be pressing hard in every way to again move forward in this major part of our Company as we close the year 2000. We do expect this year to be completed as another year of record sales and profits for Genuine Parts Company."
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
---------------- ----------------
2000 1999 2000 1999
---- ---- ---- ----
(000 omitted except per share data)
Net sales $ 2,159,940 $ 2,082,229 $ 6,373,446 $ 6,006,480
Cost of
goods sold 1,535,799 1,479,065 4,544,448 4,262,369
--------- --------- --------- ---------
624,141 603,164 1,828,998 1,744,111
Selling,
administrative
& other expenses 470,747 453,103 1,362,048 1,298,297
------- ------- --------- ---------
Income before
income taxes 153,394 150,061 466,950 445,814
Income taxes 61,665 59,424 186,899 176,542
------ ------ ------- -------
NET INCOME $ 91,729 $ 90,637 $ 280,051 $ 269,272
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Basic net income
per common
share $ .53 $ .51 $ 1.59 $ 1.50
=== === ==== ====
Diluted net
income per
common share $ .53 $ .51 $ 1.59 $ 1.50
=== === ==== ====
Average common
shares
outstanding 174,192 178,546 175,763 179,143
Dilutive effect of
stock options
and non-vested
restricted stock
awards 267 480 331 534
--- --- --- ---
Average common
shares
outstanding -
assuming
dilution 174,459 179,026 176,094 179,677
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