"Auto parts makers who supply replacement parts to the aftermarket have been plagued by slowed demand, as a result of better-made cars and the flagging economy."
AFTERMARKET OUTLOOK 'SOMEWHAT PERILOUS'
However, sustained growth in automotive parts may be much more difficult to achieve than the recent slight increases, according to Matthew Stover, an analyst who covers the company for Salomon Smith Barney.
``The outlook is somewhat perilous for the aftermarket,'' Stover said. He said inventory levels are too high, and that ``there is way too much distribution capacity out there, which will limit people's ability to raise prices.''
Genuine Parts said it has cut back on its inventory by $70 million -- but those reductions will also ultimately hinder growth, Stover said.
Genuine Parts reported $2.12 billion in sales for the quarter, compared with $2.13 billion a year ago.
The company, whose work force is down 3 percent to 32,000 employees since the beginning of this year, said its industrial, electrical and electronics businesses have been hit by lower production levels among manufacturers across the United States and Canada.
Sales growth from its office products segment, which rose 4 percent in the second quarter, has slowed and is expected to be the low single-digit range, ``until we get some help from the overall market,'' Prince said.
In all due respect, That last remark is only your opinion,so we wait and see, but I don't think you will be correct.Auto Zone is here to stay, for the next 20 years at least. keeping our customers happy and supplying the parts they need to do the job right, making a lot of stock holders happy as well. thats my opinion"FWIF"