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Genuine Parts Company Message Board

  • bluecheese4u bluecheese4u Feb 19, 2013 9:26 AM Flag

    Genuine Parts Company Reports Fourth Quarter And Full Year Results For 2012

    Genuine Parts Company Reports Fourth Quarter And Full Year Results For 2012

    - 4th Quarter Sales up 3.5% and EPS up 20% -
    - Record Sales and Earnings for 2012 -

    ATLANTA, Feb. 19, 2013 /PRNewswire via COMTEX/ --Genuine Parts Company (NYSE: GPC) reports fourth quarter results and record sales and earnings for the year ended December 31, 2012.

    Tom Gallagher, Chairman and Chief Executive Officer, announced today that sales in 2012 were $13.0 billion, up 4.5% compared to 2011. Net income for the year was $648 million, an increase of 15% compared to $565 million in 2011. Earnings per share on a diluted basis were $4.14, up 16% compared to $3.58 in 2011.

    In December 2012 the Company's pension plan was amended to freeze future benefit accruals for all participants as of December 31, 2013. In connection with this amendment, the Company recorded a one-time noncash curtailment gain of $23.5 million, which is included in our earnings results for the quarter and year.

    Mr. Gallagher stated, "The record level of earnings achieved in 2012 reflects the third consecutive year of double-digit earnings growth for the Company. We further strengthened our financial condition with increased net income, an expanded operating margin and a continued emphasis on effectively managing the balance sheet. The progress in these areas produced record cash from operations for the year."

    Mr. Gallagher added, "Our total sales increase for the year was driven by respectable sales growth in three of our four businesses. The Automotive Group reported a 4% sales increase, led by solid progress in NAPA AutoCare and Major Accounts, our two primary commercial initiatives, combined with the incremental volume from the Quaker City acquisition. Motion Industries, our Industrial Group, increased sales by 7% for the year, driven by the combination of effective growth initiatives and a generally healthy industrial economy, although we did observe slower levels of manufacturing growth over the latter part of 2012. EIS, our Electrical/Electronic Group, was up 5% for the year. S.P. Richards, our Office Products Group, reported flat revenues in 2012 relative to 2011, as the industry-wide slowdown in office products consumption continued to pressure this segment."

    Fourth Quarter 2012

    Sales increased 3.5% to $3.1 billion in the fourth quarter ended December 31, 2012, compared to sales of $3.0 billion for the same period in 2011. Net income in the fourth quarter was $160 million, an increase of 19% compared to $135 million in 2011. Diluted earnings per share in the fourth quarter were $1.03, up 20% compared to 86 cents per share for the fourth quarter of 2011.

    In reviewing the quarter, Mr. Gallagher commented, "Revenue growth in 2012 proved to be more challenging as the year progressed, and is reflective of slowing industry trends across our businesses. However, despite these industry trends, we were able to report Automotive sales up 5% for the fourth quarter and Industrial Group sales were up 2%. The Electrical Group sales were down 2% and the Office Products Group produced its strongest quarterly sales results for the year, up 3% over the fourth quarter in 2011."

    Mr. Gallagher concluded, "As we turn our focus to the new year, we remain committed to our core objectives of growing sales and earnings, showing continued operating margin improvement, generating solid cash flows and maintaining a strong balance sheet. Further progress in each of these important areas will ensure another successful year in 2013."

    Conference Call

    Genuine Parts Company will hold a conference call today at 11:00 a.m. EST


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