Genuine Parts Co. Reports 20% Boost in Q2 Income
Genuine Parts Co. (NYSE:GPC) reported a 20% boost in net income for Q2, up from the year-ago period’s $103.6 million, to $124.5 million. Diluted EPS rose from $0.65 in the year-ago period to $0.78. Sales totaling $2.8 billion jumped 12% from the previous quarter and sales also rose 9% from the year-ago period to $5.4 billion. “We are pleased to report another quarter of solid sales and earnings growth in 2010,” said chairman, president and CEO Thomas C. Gallagher. “In looking at the results by segment, our Industrial and Electrical businesses turned in the strongest results. Sales for Motion Industries, our Industrial Group, were up 26% in the quarter and EIS, our Electrical Group, generated a 32% increase. Both Motion and EIS sell into the manufacturing sector of the economy, which is performing well at this time. Our Automotive Group produced another solid quarter. Sales for this group were up 7%, following a 6% increase in the first quarter and we are encouraged by the sequential improvement that we have seen in our Automotive results over the past several quarters. SP Richards, our Office Products Group, ended the quarter down 1%. This is in line with overall office products industry trends and it is reflective of the reduction in office employment over the past two years.” Shares of Genuine Parts closed Thursday’s trading session at $42.15.
