7/15/2011 9:44 AM ET
(RTTNews) - Automotive and industrial replacement parts distributor Genuine Parts Co. (GPC: News ) reported Friday a 22 percent increase in profit for the second quarter, boosted by sales growth amid continued strength in its industrial and electrical businesses. Both earnings per share and quarterly revenues topped analysts' expectations. The company also said it is optimistic of continued progress in the second half of the year.
"We are especially pleased to report record sales and earnings for the second quarter," Chairman, President and CEO Tom Gallagher said in a statement.
The Atlanta, Georgia-based company reported net income of $151.81 million or $0.96 per share for the second quarter, up about 22 percent from $124.47 million or $0.78 per share in the prior-year quarter.
On average, nine analysts polled by Thomson Reuters expected the company to earn $0.89 per share for the second quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 12 percent to a record $3.18 billion from $2.85 billion in the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $3.11 billion.
The company's automotive group sales were up 9 percent to $1.59 billion, and sales from office products group increased 4 percent to $417.99 million.
The company said it continues to be encouraged by the ongoing positive impact of its sales initiatives and the sound fundamentals of the aftermarket, and added that the industrial and electrical businesses continues to produce the strongest growth among its four business segments.
Electrical group sales totaled $136.78 million, up 28 percent from the prior-year quarter, and sales for industrial group grew 19 percent to $1.05 billion from last year.
"We also remain optimistic that our businesses will show continued progress over the balance of the year. Our management team remains committed to sustaining good revenue growth, further improving operating margins, generating solid cash flows and maintaining a strong balance sheet," Gallagher added.
Among others in the industry, Advance Auto Parts Inc. (AAP: News ) is slated to release its second-quarter earnings on August 10, with analysts expecting earnings of $1.39 per share on revenues of $1.50 billion.
In Friday's regular trading session, GPC is currently trading at $57.21, up $2.09 or 3.79 percent on a volume of 1,500 shares. In the past 52-week period, the stock has been trading in a range of $41.32 to $57.66.
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by RTT Staff Writer
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