17th
April 2009 - Genuine Parts
Company Reports Sales and Earnings
Genuine Parts Company reported sales and
earnings for the first quarter ended
March 31, 2009. Thomas C. Gallagher, Chairman,
President and Chief Executive Officer, announced today that sales
totaling
$2.4 billion were down 11% compared to the first quarter of 2008.
Net income for the quarter was $89.2 million, a decrease
of 28% over $123.5 million recorded in the same period of
the previous year. Earnings per share on a diluted basis were 56
cents, down 25% compared to 75 cents for the
first quarter last year.
Mr. Gallagher stated, "It was a
challenging quarter for us, as the effects of the slower economy
impacted each of our four business segments. The Automotive Group and
S. P. Richards, our Office Products Group, both reported a 7%
sales decrease, while Motion Industries, our Industrial Group, reported
a 16% sales decline in the quarter, and EIS, our Electrical Group, had a
25% decrease. Our Industrial and Electrical businesses sell to the
manufacturing segment of the economy, which has experienced an overall
slowdown in activity over the past several quarters."
Mr. Gallagher added, "While we are not
pleased with our first quarter operating results, the balance sheet at
March 31, 2009, remains in excellent condition and we continue
to strengthen our financial position through working capital and asset
management initiatives, as well as steady and strong cash flows. We
believe the use of our cash in several key areas, such as the dividend,
opportunistic share repurchases, the ongoing investment in each of our
businesses and strategic complimentary types of acquisitions, serves to
maximize the total return to shareholders."
Mr. Gallagher concluded, "The effects of
the economic slowdown are likely to persist for several more quarters.
Clearly, these are challenging times; however, our expectation is to
show gradual improvement in our overall results as the year progresses.
The management teams in each of our business segments are focused on the
diligent execution of their respective growth and operating strategies,
the prudent management of their cost structure and the continued
emphasis on further strengthening our balance sheet."
Source:
Genuine Parts Company Press Release