Sales Up 5% and EPS Up 12%
Atlanta, GA -- Genuine Parts Company reports sales and earnings for the second quarter and six months ended June 30, 2012.
Thomas C. Gallagher, Chairman and Chief Executive Officer, announced today that record sales totaling $3.3 billion were up 5% compared to the second quarter of 2011. Net income for the quarter was $168.6 million, an increase of 11% from $151.8 million recorded in the same period of the previous year. Record earnings per share on a diluted basis were $1.08, up 12.5% compared to 96 cents for the second quarter last year.
For the six months ended June 30, 2012, sales totaled $6.5 billion, up 6% compared to the same period in 2011. Net income for the six months was $314.9 million, an increase of 13% from $278.3 million recorded in the previous year. Earnings per share on a diluted basis were $2.01, up 14% compared to $1.76 for the same period last year.
In review of the quarter, Mr. Gallagher commented, "We are pleased to report another period of record sales and earnings for Genuine Parts Company. The Automotive Group reported a 4% sales increase in the second quarter and, although this business slowed some during the period due to the softer sales environment across the industry, we believe our sales initiatives and the sound underlying fundamentals in the automotive aftermarket will support continued growth for this group in the quarters ahead. Sales for Motion Industries, our Industrial Group, and EIS, our Electrical Group, remain the strongest among our four business segments. Motion posted an 8% sales increase for the quarter, and EIS was up 9%. We remain encouraged by the ongoing sales opportunities for these two groups. S. P. Richards, our Office Products Group, showed a 1% sales decrease for the quarter, which reflects the ongoing challenging conditions in the office products industry. We do not expect much change in these conditions over the balance of the year, but expect our internal sales initiatives to produce modest improvement in the results for this business."
Mr. Gallagher added, "Our balance sheet as of June 30, 2012 remains in excellent condition and we continue to generate strong cash flows as a result of our increased earnings and working capital, asset management and cost reduction initiatives. Our cash position offers us tremendous opportunities and we continue to use our cash in several key areas to maximize the total return to shareholders. Our priorities for cash include the dividends paid to shareholders, the ongoing reinvestment back into each of our four businesses, strategic acquisitions and share repurchases."
Mr. Gallagher concluded, "We are encouraged by the record level of sales and earnings achieved in the second quarter and for the first six months in 2012. Despite the potential for softer macro-economic conditions over the last half of the year, we remain optimistic that our businesses will show continued progress in the quarters ahead. Our management team remains committed to sustaining good revenue growth, further improving operating margins, generating solid cash flows and maintaining a strong balance sheet."