Genuine Parts Company Reports Record Sales and Earnings for the Second Quarter Ended June 30, 2013

Genuine Parts Company Reports Record Sales and Earnings for the Second Quarter
                             Ended June 30, 2013

- Sales Up 10% and EPS Up 29% -

PR Newswire

ATLANTA, July 18, 2013

ATLANTA, July 18, 2013 /PRNewswire/ --Genuine Parts Company (NYSE:GPC)
reports sales and earnings for the second quarter and six months ended June
30, 2013.

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

Thomas C. Gallagher, Chairman and Chief Executive Officer, 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."

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. Eastern
time to discuss the results of the quarter 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
10933272. A replay of the call will also be available on the Company's
website or at 855-859-2056, conference ID 10933272, after the completion of
the conference call until 12:00 a.m. Eastern time on August 2, 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
2012 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, Mexico and Australasia. 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 June 30, Six Months Ended June 30,
                         2013          2012          2013         2012
                         (Unaudited)
                         (in thousands, except per share data)
Net sales                $3,675,997    $3,337,836    $6,874,799   $6,519,124
Cost of goods sold       2,570,889     2,365,550     4,847,943    4,627,727
Gross profit             1,105,108     972,286       2,026,856    1,891,397
Operating expenses:
Selling, administrative  753,527       680,246       1,427,139    1,348,204
& other expenses
Depreciation and         36,853        24,735        62,852       47,720
amortization
                         790,380       704,981       1,489,991    1,395,924
Income before income     314,728       267,305       536,865      495,473
taxes
Income taxes             98,371        98,687        176,119      180,600
Net income               $ 216,357    $ 168,618    $ 360,746   $ 314,873
Basic net income per     $1.40         $1.08         $2.33        $2.02
common share
Diluted net income per   $1.39         $1.08         $2.31        $2.01
common share
Weighted average common  155,050       155,753       154,971      155,781
shares outstanding
Dilutive effect of stock
options and
 non-vested restricted 1,094         1,019         1,075        1,073
stock awards
Weighted average common
shares outstanding –
 assuming dilution     156,144       156,772       156,046      156,854



GENUINE PARTS COMPANY and SUBSIDIARIES

SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
                             Three Months Ended June Six Months Ended June 30,
                             30,
                             2013        2012        2013         2012
                             (Unaudited)
                             (in thousands)
Net sales:
Automotive                   $2,011,802  $1,644,902  $3,556,339   $3,138,401
Industrial                   1,132,032   1,138,724   2,234,112    2,259,947
Office Products              402,272     413,340     822,400      839,493
Electrical/Electronic        142,970     149,440     282,155      296,556
Materials
Other (1)                    (13,079)    (8,570)     (20,207)     (15,273)
 Total net      $3,675,997  $3,337,836  $6,874,799   $6,519,124
sales
Operating profit:
Automotive                   $ 186,382   $ 152,978   $ 307,425    $ 267,539
Industrial                   88,891      95,053      167,786      179,381
Office Products              29,768      30,611      62,960       68,126
Electrical/Electronic        12,221      12,933      22,672       24,899
Materials
Total operating profit       317,262     291,575     560,843      539,945
Interest expense, net        (7,852)     (5,019)     (11,205)     (9,734)
Intangible amortization      (8,986)     (3,641)     (12,761)     (5,752)
Other, net                   14,304      (15,610)    (12)         (28,986)
 Income before $ 314,728   $ 267,305   $ 536,865    $ 495,473
income taxes
Capital expenditures         $ 37,883    $ 34,478    $ 50,807     $ 51,368
Depreciation and             $ 36,853    $ 24,735    $ 62,852     $ 47,720
amortization
 (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
                                                       June 30,    June 30,
                                                       2013        2012
                                                       (Unaudited)
                                                       (in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents                              $  196,770 $  171,577
Trade accounts receivable, net                         1,759,176   1,605,696
Merchandise inventories, net                           2,799,150   2,511,706
Prepaid expenses and other current assets              352,645     312,510
TOTAL CURRENT ASSETS                                   5,107,741   4,601,489
Goodwill and other intangible assets, less accumulated 1,270,447   498,288
amortization
Deferred tax asset                                     179,850     250,963
Other assets                                           459,320     590,359
Net property, plant and equipment                      642,955     567,013
TOTAL ASSETS                                           $7,660,313  $6,508,112
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade accounts payable                                 $2,064,878  $1,599,695
Current portion of debt                                650,102     -
Income taxes payable                                   10,865      18,603
Dividends payable                                      83,407      77,081
Other current liabilities                              513,695     483,352
TOTAL CURRENT LIABILITIES                              3,322,947   2,178,731
Long-term debt                                         250,000     500,000
Retirement and other post-retirement benefit           494,572     485,317
liabilities
Other long-term liabilities                            506,655     451,470
Common stock                                           154,859     155,101
Retained earnings and other                            3,521,735   3,185,924
Accumulated other comprehensive loss                   (600,223)   (458,444)
TOTAL PARENT EQUITY                                    3,076,371   2,882,581
Noncontrolling interests in subsidiaries               9,768       10,013
TOTAL EQUITY                                           3,086,139   2,892,594
TOTAL LIABILITIES AND EQUITY                           $7,660,313  $6,508,112



GENUINE PARTS COMPANY and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     Six Months Ended June 30,
                                                     2013          2012
                                                     (Unaudited)
                                                     (in thousands)
OPERATING ACTIVITIES:
Net income                                           $360,746      $314,873
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                        62,852        47,720
Share-based compensation                             5,455         5,099
Excess tax benefits from share-based compensation    (9,410)       (7,174)
Other                                                (51,051)      (703)
Changes in operating assets and liabilities          98,486        61,498
NET CASH PROVIDED BY OPERATING ACTIVITIES            467,078       421,313
INVESTING ACTIVITIES:
Purchases of property, plant and equipment           (50,807)      (51,368)
Acquisitions and other investing activities          (596,105)     (525,901)
NET CASH USED IN INVESTING ACTIVITIES                (646,912)     (577,269)
FINANCING ACTIVITIES:
Proceeds from debt                                   1,269,550     550,000
Payments on debt                                     (1,098,998)   (550,000)
Share-based awards exercised, net of taxes paid      (10,948)      (2,903)
Excess tax benefits from share-based compensation    9,410         7,174
Dividends paid                                       (159,908)     (147,187)
Purchase of stock                                    (26,318)      (55,015)
NET CASH USED IN FINANCING ACTIVITIES                (17,212)      (197,931)
EFFECT OF EXCHANGE RATE CHANGES ON CASH              (9,279)       410
NET DECREASE IN CASH AND CASH EQUIVALENTS            (206,325)     (353,477)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     403,095       525,054
CASH AND CASH EQUIVALENTS AT END OF PERIOD           $196,770      $171,577

SOURCE Genuine Parts Company

Website: http://www.genpt.com
Contact: Carol B. Yancey, Executive Vice President and CFO - (770) 612-2044;
Sidney G. Jones, Vice President - Investor Relations - (770) 818-4628
 
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