Genuine Parts Co.(GPC) Tuesday reported a 14 percent increase in fourth-quarter profit, as sales grew in almost all businesses. The company's earnings for the quarter surpassed expectation of analysts, while revenues fell short of estimates.
The company, which distributes automotive and industrial replacement parts, also boosted its quarterly dividend by 10 percent to an annual rate of $1.98 per share for 2012.
Commenting on the results, Chief Executive Tom Gallagher said, "Overall, our businesses continued to perform well in the fourth quarter. Our automotive sales were up 6 percent, our industrial group sales were up 13 percent, our electrical group sales were up 10 percent and our office products group sales were down slightly for the quarter."
Genuine Parts, whose automotive replacement parts business generates half of the sales, benefited largely from many of the consumers still running their old cars and getting its parts replaced. The company also indicated results were helped by the "strength in the manufacturing sector of the economy."
Genuine Part's net income for the fourth quarter improved to $134.96 million or $0.86 per share from $118.65 million or $0.75 per share last year. Sales for the quarter grew 7 percent to $3.01 billion from a year ago. Wall Street analysts on a consensus estimated earnings of $0.83 per share on revenues of $3.05 billion for the quarter.
The company said the cash dividend of $0.495 per share, is payable on April 2 to shareholders as of record March 9.
GPC is currently trading on the NYSE at $63.82, down 2.68%, on a volume of 1.1 million shares.
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