Genuine Parts Company (NYSE: GPC) reports fourth quarter results and record sales and earnings for the year ended December 31, 2011.
Tom Gallagher, Chairman and Chief Executive Officer, announced today that sales in 2011 were $12.5 billion, up 11% compared to 2010. Net income for the year was $565 million, an increase of 19% compared to $476 million in 2010.
Earnings per share on a diluted basis were $3.58, up 19% compared to $3.00 in 2010.
Mr. Gallagher stated, "Genuine Parts Company had another excellent year in 2011, highlighted by double-digit sales and earnings growth and record sales and earnings per share for the second consecutive year. We further strengthened our financial condition with increased net income, an expanded operating margin and a continued emphasis on effectively managing the balance sheet. We are very proud of the job that was done throughout our organization."
Mr. Gallagher added, "All four of our business segments produced topline growth for the year. The Automotive Group reported an 8% sales increase for the year, and the positive sales trends for this segment in 2011 reflect the ongoing solid fundamentals in the automotive aftermarket, including the overall aging of the vehicle population.
Motion Industires, our industrial distribution company, generated a 19% sales increase with the strong double-digit sales growth at Motion driven by the combination of good internal growth initiatives and the strength in the manufacturing sector of the economy. EIS, our Electrical distribution company, had another outstanding year as well, and sales were up 24%. S.P. Richards, our Office Products Group, reported a 3% increase in revenues in 2011. We were pleased to show some growth in such a difficult environment for the office products industry."
Fourth Quarter 2011 Sales increased 7% to $3.0 billion in the fourth quarter ended December 31, 2011, compared to sales of $2.8 billion for the sameperiod in 2010. Net income in the fourth quarter was $135 million, anincrease of 14% compared to $119 million in 2010. Diluted earningsper share in the fourth quarter were 86 cents, up 15% compared to 75 cents per share for the fourth quarter of 2010.In reviewing the quarter, Mr. Gallagher commented, "Overall, our businesses continued to perform well in the fourth quarter. Our automotive sales were up 6%, our Industrial Group sales were up 13%, our Electrical Group sales were up 10% and our Office Products Group sales were down slightly for the quarter."
Mr. Gallagher concluded, "We enter 2012 with a continued commitment to growing sales and earnings, generating solid cash flows and maintaining a strong balance sheet. Further progress in each of these important areas will keep the Company moving ahead and they will help to insure another successful year in 2012."
