Genuine Parts Company (GPC) reported a 13% rise in profit to $99 million or 62 cents per share in the fourth quarter of 2009 from $88 million or 55 cents in the prior year quarter. With this, the company has beaten the Zacks Consensus Estimate of 51 cents per share. However, sales in the quarter fell 2% to $2.47 billion.

Genuine Parts’ Automotive Parts segment was the only segment to report an improvement in sales. The Industrial Parts and Electrical/Electronic Material segments were the most negatively affected during the quarter. Revenue in the Automotive Parts segment increased 6% to $1.26 billion, Industrial Parts segment dipped 11% to $737 million, Office Products segment slid 4% to $384 million and Electrical Group shrank 12% to $90 million.

Annual Results

In 2009, Genuine Parts has posted a 16% decline in profit to $399.6 million or $2.50 per share, from $475.4 million or $2.92 per share in 2008. The profit was a tad higher than the Zacks Consensus Estimate of $2.38 per share.

All the business segments were adversely affected by the economic slowdown during the year. Sales declined 2% to $5.23 billion in the Automotive Parts segment, 5% to $1.64 billion in the Office Products segment, 18% to $2.89 billion in the Industrial Parts segment and 26% to $346 million in the Electrical Group.

Financial Position

Genuine Parts has strengthened its financial position in 2009. The company had cash and cash equivalents of $337 million as of December 31, 2009, a significant increase from $68 million as of December 31, 2008. Long-term debt remained unchanged at $500 million as of that date. The company maintained a lower long-term debt to capitalization ratio of 19%.

In 2009, Genuine Parts’ net cash flow from operations increased to $845 million from $530 million in the prior-year period. Meanwhile, capital expenditures reduced to $69 million from $105 million a year ago.

Driven by the improved results, Genuine Parts’ share price elevated more than 7% to $40.91 in the afternoon.

Zacks Investment Research

1. (AAP) Advance Auto Parts Outdoes EstimatesAdvance Auto Parts (AAP) posted a profit of 69 cents per share, before special items,...
2. (GPI) Group 1 Automotive’s Profit ImprovesGroup 1 Automotive (GPI) revealed a profit of $16.8 million or 71 cents per share...
3. (GPC) Genuine Parts Company’ Profits Dip 18%Genuine Parts Company (GPC) reported an 18% drop in profits to $108 million in the...
4. (AAP) Advance Auto Parts Targets E-CommerceAdvance Auto Parts (AAP) has launched its own e-commerce website, AdvanceAutoParts.com, to sell its products...
5. (VAL) Valspar Profit Improves – raised its earnings estimate for fiscal 2009Valspar Corp. (VAL) revealed a 38% improvement in profit to $65 million or 61 cents...
6. Why These Two Investment Fears Aren’t Genuine ThreatsWhy These Two Investment Fears Aren’t Genuine Threats by Alexander Green, Chairman, Investment U Investment...

Search Posts by Tag: Genuine Parts Company | GPC | Auto Parts Wholesale | Services

RSS Feeds by Tag: Genuine Parts Company | GPC | Auto Parts Wholesale | Services |

Other Posts by: vitalstocks | RSS Feed for this author