Genuine Parts Company announced its sales and earnings for the fourth quarter and 12 months ended December 31, 2016.
Sales for the fourth quarter ended December 31, 2016 were $3.78 billion, a 3% increase compared to $3.68 billion for the same period in 2015. Net income for the fourth quarter was $152.5 million compared to $161.3 million recorded for the same period in the previous year. Earnings per share on a diluted basis were $1.02 compared to $1.07 for the fourth quarter last year.
Fourth quarter sales for the Automotive Group were up 2%, including an approximate 1% comparable sales increase. Sales at Motion Industries, our Industrial Group, were up 4%, sales at EIS, our Electrical/Electronic Group, were basically unchanged and sales for S. P. Richards, our Office Products Group, were up 4% for the quarter.
Paul Donahue, President and Chief Executive Officer, said, "The fourth quarter was our strongest quarterly sales performance of the year, with acquisitions being the primary growth driver in each of our four business segments. With that said, we did see improvement in our comparable sales trends in the Automotive, Industrial and Electrical/Electronic businesses relative to the second and third quarters of 2016. Generally, we operated in more favorable market conditions as the fourth quarter progressed, and our teams were in position to benefit from that."
Sales for the twelve months ended December 31, 2016 were $15.34 billion, up 0.4% compared to $15.28 billion for the same period in 2015. Net income for the twelve months was $687.2 million, down 3% from 2015, and earnings per share on a diluted basis were $4.59, down 1% compared to $4.63 in 2015.
Mr. Donahue concluded, "We worked hard in every aspect of our business to overcome the challenging sales environment that persisted in our U.S. markets throughout most of 2016. We also enhanced our measures to control rising costs and manage our assets to further strengthen the balance sheet and generate strong cash flows. Due to these efforts, as well as the global growth initiatives across our operations and geographies, the Company enters 2017 well positioned for sustainable long-term growth."
2017 Outlook
The Company is establishing its full year 2017 sales guidance at up 3% to 4%. Diluted earnings per share is expected to be $4.70 to $4.80.
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