Atlanta, GA - Genuine Parts Company reports sales and earnings for the second quarter and six months ended June 30, 2013.
Thomas C. Gallagher, Chairman and CEO, announced today that record sales totaling $3.68 billion were up 10% compared to the second quarter of 2012. Net income for the quarter was $216.4 million, an increase of 28% from $168.6 million recorded in the same period of the previous year. Earnings per share on a diluted basis were $1.39, up 29% compared to $1.08 for the second quarter last year.
On April 1, 2013, the company acquired the remaining 70% interest in GPC Asia Pacific (formerly Exego). The company's 30% investment, originated on January 1, 2012, was remeasured and, net of certain one-time purchase accounting costs, amounted to a positive pre-tax adjustment of approximately $36 million recorded in the second quarter. This adjustment, combined with a lower tax rate for the remeasurement, favorably impacted diluted earnings per share by $0.22.
For the six months ended June 30, 2013, sales totaled $6.87 billion, up 5% compared to the same period in 2012. Net income for the six months was $360.7 million, an increase of 15% from $314.9 million recorded in the previous year. Earnings per share on a diluted basis were $2.31, up 15% compared to $2.01 for the same period last year. In review of the quarter, Mr. Gallagher commented, "We are pleased to report record levels of sales and earnings for the second quarter. The progress in our operations was driven by the improved results in our automotive business. Sales for the Automotive Group were up 22%, consisting of core North American growth of approximately 6% and the positive impact of the Australasian acquisition. We were encouraged by the sequential improvement in our core sales growth in the quarter. Likewise, GPC Asia Pacific performed as planned for the quarter and we continue to be excited about the growth opportunities we see in the Australasian aftermarket."
Mr. Gallagher added, "Our non-automotive businesses remain our most challenging, as their end markets were relatively weak throughout the second quarter. Sales for Motion Industries, our Industrial Group, were down approximately 1%, and EIS, our Electrical/Electronic Group, showed sales down 4%. S.P. Richards, our Office Products Group, had a 3% decrease in sales. We continue to expect a stronger second half of the year for these businesses, but likely at a slower rate of growth than previously anticipated."
Mr. Gallagher concluded, "As always, 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. Our cash flows are proving very strong again this year and the Company is in excellent financial condition. We look forward to reporting our continued progress in the quarters ahead."
