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 -

PR Newswire

ATLANTA, Feb. 19, 2013

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

(Logo: http://photos.prnewswire.com/prnh/20081002/CLTH108LOGO )

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 to
discuss the results of the quarter, the year and the future outlook.
Interested parties may listen to the call on the Company's website,
www.genpt.com, by clicking "Investor Services", or by dialing 877-331-5106,
conference ID 92943087. A replay will also be available on the Company's
website or at 855-859-2056, conference ID 92943087, two hours after the
completion of the call until 12:00 a.m. Eastern time on March 6, 2013.

Forward Looking Statements

Some statements in this report, as well as in other materials we file with the
Securities and Exchange Commission (SEC)or otherwise release to the public
and in materials that we make available on our website, constitute
forward-looking statements that are subject to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Senior officers may
also make verbal statements to analysts, investors, the media and others that
are forward-looking. Forward-looking statements may relate, for example, to
future operations, prospects, strategies, financial condition, economic
performance (including growth and earnings), industry conditions and demand
for our products and services. The Company cautions that its forward-looking
statements involve risks and uncertainties, and while we believe that our
expectations for the future are reasonable in view of currently available
information, you are cautioned not to place undue reliance on our
forward-looking statements. Actual results or events may differ materially
from those indicated as a result of various important factors. Such factors
may include, among other things, slowing demand for the Company's products,
changes in general economic conditions, including, unemployment, inflation or
deflation, high energy costs, uncertain credit markets and other
macro-economic conditions, the ability to maintain favorable vendor
arrangements and relationships, disruptions in our vendors' operations,
competitive product, service and pricing pressures, the Company's ability to
successfully implement its business initiatives in each of its four business
segments, the Company's ability to successfully integrate its acquired
businesses, the uncertainties and costs of litigation, as well as other risks
and uncertainties discussed in the Company's Annual Report on Form 10-K for
2011 and from time to time in the Company's subsequent filings with the SEC.

Forward-looking statements are only as of the date they are made, and the
Company undertakes no duty to update its forward-looking statements except as
required by law. You are advised, however, to review any further disclosures
we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other
reports to the SEC.

About Genuine Parts Company

Genuine Parts Company is a distributor of automotive replacement parts in the
U.S., Canada and Mexico. The Company also distributes industrial replacement
parts in the U.S., Canada and Mexico through its Motion Industries
subsidiary. S.P. Richards Company, the Office Products Group, distributes
business products nationwide in the U.S. and Canada. The Electrical/Electronic
Group, EIS, Inc., distributes electrical and electronic components throughout
the U.S., Canada and Mexico.





GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                           Three Months Ended Dec. 31, Year Ended Dec. 31,
                           2012          2011          2012        2011
                           (in thousands, except per share data)
Net sales                  $3,118,966    $3,014,135    $13,013,868 $12,458,877
Cost of goods sold         2,208,308     2,121,535     9,235,777   8,852,837
Gross profit               910,658       892,600       3,778,091   3,606,040
Operating expenses:
Selling, administrative &  633,678       660,428       2,660,776   2,626,298
other expenses
Depreciation and           25,054        21,997        98,383      88,936
amortization
                           658,732       682,425       2,759,159   2,715,234
Income before income taxes 251,926       210,175       1,018,932   890,806
Income taxes               91,701        75,218        370,891     325,690
Net income                 $160,225      $134,957      $648,041    $565,116
Basic net income per       $1.03         $ .87         $4.17       $3.61
common share
Diluted net income per     $1.03         $ .86         $4.14       $3.58
common share
Weighted average common    154,952       155,567       155,413     156,656
shares outstanding
Dilutive effect of stock
options and
 non-vested restricted   943           1,095         1,007       1,004
stock awards
Weighted average common
shares outstanding –
 assuming dilution       155,895       156,662       156,420     157,660





GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
                               Three Months Ended Dec. Year Ended Dec. 31,
                               31,
                               2012        2011        2012        2011
                               (in thousands)
Net sales:
 Automotive               $1,531,624  $1,460,152  $6,320,882  $6,061,424
 Industrial               1,054,773   1,032,719   4,453,574   4,173,574
 Office Products          402,942     391,403     1,686,690   1,689,368
 Electrical/Electronic    135,387     137,601     582,820     557,537
Materials
 Other (1)                (5,760)     (7,740)     (30,098)    (23,026)
 Total net sales    $3,118,966  $3,014,135  $13,013,868 $12,458,877
Operating profit:
 Automotive               $122,491    $89,879     $540,678    $467,806
 Industrial               78,117      89,139      352,119     337,628
 Office Products          36,373      38,149      134,441     134,124
 Electrical/Electronic    12,456      10,283      50,910      40,663
Materials
 Total operating profit   249,437     227,450     1,078,148   980,221
 Interest expense, net    (4,914)     (5,628)     (19,619)    (24,608)
 Intangible amortization  (3,811)     (1,942)     (12,991)    (6,774)
 Other, net               11,214      (9,705)     (26,606)    (58,033)
 Income before      $251,926    $210,175    $1,018,932  $890,806
income taxes
Capital expenditures           $30,360     $39,537     $101,987    $103,469
Depreciation and amortization  $25,054     $21,997     $98,383     $88,936



(1) Represents the net effect of discounts, incentives and freight billed
    reported as a component of net sales.





GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                       Dec. 31,    Dec. 31,
                                                       2012        2011
                                                       (in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents                              $  403,095 $  525,054
Trade accounts receivable, net                         1,490,028   1,461,011
Merchandise inventories, net                           2,602,560   2,440,111
Prepaid expenses and other current assets              324,448     328,534
 TOTAL CURRENT ASSETS                             4,820,131   4,754,710
Goodwill and other intangible assets, less accumulated 497,839     279,775
amortization
Deferred tax asset                                     279,463     261,608
Other assets                                           643,263     406,477
Net property, plant and equipment                      566,365     500,204
TOTAL ASSETS                                           $6,807,061  $6,202,774
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade accounts payable                                 $1,681,900  $1,440,762
Current portion of debt                                250,000     -
Income taxes payable                                   4,354       21,081
Dividends payable                                      76,641      70,021
Other current liabilities                              474,743     480,684
 TOTAL CURRENT LIABILITIES                        2,487,638   2,012,548
Long-term debt                                         250,000     500,000
Retirement and other post-retirement benefit           572,988     493,721
liabilities
Other long-term liabilities                            488,256     442,914
Common stock                                           154,841     155,651
Retained earnings and other                            3,344,538   3,070,394
Accumulated other comprehensive loss                   (501,492)   (482,038)
 TOTAL PARENT EQUITY                             2,997,887   2,744,007
Noncontrolling interests in subsidiaries               10,292      9,584
 TOTAL EQUITY                                    3,008,179   2,753,591
TOTAL LIABILITIES AND EQUITY                           $6,807,061  $6,202,774





GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                           Year Ended Dec. 31,
                                                           2012      2011
                                                           (in thousands)
OPERATING ACTIVITIES:
 Net income                                           $648,041  $565,116
 Adjustments to reconcile net income to net cash
provided by operating activities:
 Depreciation and amortization                        98,383    88,936
 Share-based compensation                             10,747    7,547
 Excess tax benefits from share-based compensation    (11,018)  (5,356)
 Other                                                10,808    (5,349)
 Changes in operating assets and liabilities          149,477   (25,967)
NET CASH PROVIDED BY OPERATING ACTIVITIES                  906,438   624,927
INVESTING ACTIVITIES:
 Purchases of property, plant and equipment           (101,987) (103,469)
 Acquisitions and other                               (549,880) (128,028)
NET CASH USED IN INVESTING ACTIVITIES                      (651,867) (231,497)
FINANCING ACTIVITIES:
 Proceeds from debt                                   750,000   250,000
 Payments on debt                                     (750,000) (250,000)
 Stock options exercised                              (7,043)   (1,049)
 Excess tax benefits from share-based compensation    11,018    5,356
 Dividends paid                                       (300,983) (276,369)
 Purchase of stock                                    (81,826)  (122,078)
NET CASH USED IN FINANCING ACTIVITIES                      (378,834) (394,140)
EFFECT OF EXCHANGE RATE CHANGES ON CASH                    2,304     (4,204)
NET DECREASE IN CASH AND CASH EQUIVALENTS                 (121,959) (4,914)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR             525,054   529,968
CASH AND CASH EQUIVALENTS AT END OF YEAR                   $403,095  $525,054



SOURCE Genuine Parts Company

Website: http://www.genpt.com
Contact: Jerry W. Nix, Vice Chairman and CFO - +1-770-612-2048; Carol B.
Yancey, Executive Vice President - Finance - +1-770-612-2044; Sidney G. Jones,
Vice President - Investor Relations - +1-770-818-4628
 
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