Genuine Parts Co. has reported its sales and earnings for the second quarter and six months ended June 30.
Thomas Gallagher, chairman, president and chief executive officer, said sales totaling $2.5 billion were down 12 percent compared to the second quarter of 2008. Net income for the quarter was $103.6 million, a decrease of 22 percent from $133.1 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 65 cents, down 20 percent compared to 81 cents for the second quarter last year.
For the six months ended June 30, sales totaled $5 billion, down 11 percent compared to the same period in 2008. Net income for the six months was $192.8 million, a decrease of 25 percent from the previous year. Earnings per share on a diluted basis were $1.21, down 22 percent compared to $1.56 for the same period last year.
"The Automotive Group reported a 5 percent decrease in sales for the quarter and S.P. Richards, our Office Products Group, was down 6 percent. These results reflect a slight improvement from the 7 percent sales decreases reported for the Automotive and Office Products groups in the first quarter of 2009,” Gallagher said.
“The Industrial and Electrical Groups, however, showed further sales declines relative to the first quarter of 2009 due to worsening conditions in the manufacturing segment of the economy. Motion Industries, our Industrial Group, had a 22 percent sales decrease in the quarter, and EIS, our Electrical Group, had a 34 percent decrease."
Gallagher added, "The balance sheet at June 30, remains in excellent condition and we continue to strengthen our financial position through working capital and asset management initiatives, significant cost reduction efforts and steady and strong cash flows. Cash from operations has improved significantly from 2008 and our sound cash position provides us with significant financial flexibility. Our priorities for cash remain the dividend, opportunistic share repurchases, the ongoing reinvestment in each of our businesses and strategic complementary types of acquisitions. We continue to believe that the use of cash in these key areas serves to maximize the total return to shareholders."
Gallagher concluded, "We are not satisfied with our results for the second quarter and first half of 2009, but feel that they reflect the realities of a difficult economy. As we approach the second half of the year, we will remain focused on those areas of our business that are within our control and we will support our growth initiatives and cost reduction efforts with a strong and healthy balance sheet. We remain confident in the long-term positive fundamentals of each of our businesses and we believe that we will be a stronger company when the economy begins to turn."
