Fourth Quarter 2009

Genuine Parts Company Reports Sales and Earnings for the Fourth Quarter and Year Ended December 31, 2009

PRNewswire-FirstCall
ATLANTA
Feb 16, 2010
9:41am

Genuine Parts Company reports sales and earnings for the fourth quarter and year ended December 31, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGO )

Tom Gallagher, Chairman, President and Chief Executive Officer, announced today that sales in 2009 were $10.1 billion, down 9% compared to 2008. Net income for the year was $399.6 million, a decrease of 16% compared to $475.4 million in 2008. Earnings per share on a diluted basis were $2.50, down 14% compared to $2.92 in 2008.

Mr. Gallagher stated, "The effects of the economic slowdown, which we began to experience in the final quarter of 2008, adversely impacted the results in all four of the business segments throughout 2009. The Automotive Group reported a 2% sales decrease for the year and S.P. Richards, our Office Products Group, was down 5% for 2009. The difficult economy most significantly impacted our two businesses serving the manufacturing sector of the economy. Motion Industries, our Industrial Group, had an 18% sales decrease for the year, and EIS, our Electrical Group, had a 26% decrease."

Mr. Gallagher added, "2009 turned out to be one of the most challenging years in the history of Genuine Parts Company. Fortunately, we were able to maintain a strong balance sheet and finish the year in excellent financial condition. In fact, the Company generated record cash flows in 2009. Additionally, we continue to have confidence in the long-term positive fundamentals for all four of our businesses and we feel that we are positioned to show improved sales and earnings as the economy turns."

Fourth Quarter 2009

Sales decreased 2% to $2.47 billion in the fourth quarter ended December 31, 2009, compared to $2.52 billion for the same period in 2008. Diluted earnings per share in the fourth quarter were 62 cents, up 13% compared to 55 cents per share for the fourth quarter of 2008.

In reviewing the quarter, Mr. Gallagher commented, "We are encouraged by the sequential improvement across all of our business segments during the final quarter. In the fourth quarter of 2009, our Automotive sales were up 6%, our Office Products Group was down 4%, our Industrial Group sales were down 11% and our Electrical Group was down 12%."

Mr. Gallagher concluded, "We observed some early signs of improving market conditions in the latter part of 2009 and we feel this bodes well for a stronger performance in 2010. We are fortunate to operate in four good industries."

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. EST to discuss the results of the quarter, the year 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 877-316-2549, conference ID 53858190. A replay will also be available on the Company's website or at 800-642-1687, conference ID 53858190, two hours after the completion of the call until 12:00 a.m. EST on March 3, 2010.

Forward Looking Statements

Some statements in this release, 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 our 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 include, but are not limited to, the ability to maintain favorable supplier arrangements and relationships, changes in general economic conditions, the growth rate of the market for the Company's products and services, competitive product and pricing pressures, including internet related initiatives, the effectiveness of the Company's promotional, marketing and advertising programs, changes in financial markets, including particularly the capital and credit markets, impairment of financial institutions, changes in laws and regulations, including changes in accounting and taxation guidance, the uncertainties of litigation, as well as other risks and uncertainties discussed from time to time in the Company's 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 Form 10-Q, 10-K, 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 and Mexico. The Company also distributes industrial replacement parts in the U.S. and Canada 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 Dec. 31,       Year Ended Dec. 31,
                         2009          2008           2009           2008
                         ----          ----           ----           ----
                          (Unaudited)

                            (in thousands, except per share data)

  Net sales        $2,471,214    $2,520,190    $10,057,512    $11,015,263
  Cost of goods
   sold             1,703,754     1,768,401      7,047,750      7,742,773
                    ---------     ---------      ---------      ---------
                      767,460       751,789      3,009,762      3,272,490
  Selling,
   administrative
   & other expenses   604,719       601,555      2,365,597      2,504,022
                      -------       -------      ---------      ---------

  Income before
   income taxes       162,741       150,234        644,165        768,468
  Income taxes         63,574        62,450        244,590        293,051
                       ------        ------        -------        -------

  Net income          $99,167       $87,784       $399,575       $475,417
                      =======       =======       ========       ========

  Basic net income per
   common share          $.62          $.55          $2.51          $2.93

  Diluted net income
   per common share      $.62          $.55          $2.50          $2.92

  Weighted
   average common
   shares
   outstanding        159,144       159,452        159,410        162,351

  Dilutive effect
   of stock options
   and non-vested
   restricted
   stock awards           376           457            297            635
                          ---           ---            ---            ---

  Weighted
   average common
   shares
   outstanding -
   assuming dilution  159,520       159,909        159,707        162,986
                      =======       =======        =======        =======





                        GENUINE PARTS COMPANY and SUBSIDIARIES
                     SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS
                     --------------------------------------------
                   Three Months Ended Dec. 31,       Year Ended Dec. 31,
                        2009          2008           2009           2008
                        ----          ----           ----           ----
                         (Unaudited)
                                      (in thousands)

  Net sales:
     Automotive   $1,264,646    $1,194,018     $5,225,389     $5,321,536
     Industrial      736,582       828,364      2,885,782      3,514,661
     Office
      Products       383,849       400,347      1,639,018      1,732,514
     Electrical/
      Electronic
      Materials       89,702       102,177        345,808        465,889
     Other (1)       (3,565)       (4,716)       (38,485)       (19,337)
                     -------       -------       --------       --------
        Total net
         sales    $2,471,214    $2,520,190    $10,057,512    $11,015,263
                  ==========    ==========    ===========    ===========

  Operating
   profit:
     Automotive      $75,026       $67,468       $387,945       $385,356
     Industrial       60,240        71,871        162,353        294,652
     Office
      Products        27,023        29,406        126,104        144,127
     Electrical/
      Electronic
      Materials        7,694         7,546         25,254         36,721
                       -----         -----         ------         ------
     Total
      operating
      profit         169,983       176,291        701,656        860,856
     Interest 
      expense, net   (6,602)       (7,970)       (27,112)       (29,847)
     Other, net        (640)      (18,087)       (30,379)       (62,541)
                       -----      --------       --------       --------
      Income before
       income taxes $162,741      $150,234       $644,165       $768,468
                    ========      ========       ========       ========

  Capital
   expenditures      $20,085       $44,935        $69,445       $105,026
                     =======       =======        =======       ========

   Depreciation
   and amortization  $22,917       $22,229        $90,411        $88,698
                     =======       =======        =======        =======

  (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
                    -------------------------------------
                                                  Dec. 31,        Dec. 31,
                                                    2009            2008
                                                    ----            ----
                                                       (in thousands)
  ASSETS
  CURRENT ASSETS
  Cash and cash equivalents                       $336,803         $67,777
  Trade accounts receivable, net                 1,187,075       1,224,525
  Merchandise inventories, net                   2,214,076       2,316,880
  Prepaid expenses and other current assets        294,874         262,238
                                                   -------         -------

     TOTAL CURRENT ASSETS                        4,032,828       3,871,420

  Goodwill and other intangible assets, less
   accumulated amortization                        171,532         158,825
  Deferred tax asset                               167,722         218,503
  Other assets                                     147,583         114,337
  Net property, plant and equipment                485,024         423,265
                                                   -------         -------

  TOTAL ASSETS                                  $5,004,689      $4,786,350
                                                ==========      ==========

  LIABILITIES AND EQUITY
  CURRENT LIABILITIES
  Trade accounts payable                        $1,094,347      $1,009,423
  Income taxes payable                              42,988          24,685
  Dividends payable                                 63,586          62,148
  Other current liabilities                        207,363         190,847
                                                   -------         -------

     TOTAL CURRENT LIABILITIES                   1,408,284       1,287,103


  Long-term debt                                   500,000         500,000
  Other long-term liabilities                      166,836         103,264
  Retirement and other post-retirement benefit
   liabilities                                     300,197         502,605

  Noncontrolling interests in subsidiaries           8,042          69,046
  Common stock                                     158,918         159,443
  Retained earnings and other                    2,462,412       2,164,889
                                                 ---------       ---------

     TOTAL  EQUITY                               2,629,372       2,393,378
                                                 ---------       ---------

  TOTAL LIABILITIES AND EQUITY                  $5,004,689      $4,786,350
                                                ==========      ==========

  NOTE:  Certain prior period amounts have been reclassified to conform
  to the current year presentation.





                   GENUINE PARTS COMPANY and SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              -----------------------------------------------

                                                     Year Ended Dec. 31,
                                                     2009           2008
                                                     ----           ----
                                                       (in thousands)

  OPERATING ACTIVITIES:
     Net income                                  $399,575       $475,417
     Adjustments to reconcile net income to net
      cash provided by operating activities:
     Depreciation and amortization                 90,411         88,698
     Other                                         33,404       (28,546)
     Changes in operating assets and liabilities  321,908        (5,260)
                                                  -------         ------

  NET CASH PROVIDED BY OPERATING ACTIVITIES       845,298        530,309

  INVESTING ACTIVITIES:
     Purchases of property, plant and equipment  (69,445)      (105,026)
     Acquisitions and other                     (122,161)      (109,308)
     Purchase of properties under construction
      and lease agreement                        (72,814)              -
                                                 --------            ---

  NET CASH USED IN INVESTING ACTIVITIES         (264,420)      (214,334)

  FINANCING ACTIVITIES:
     Stock options exercised                        1,878            821
     Excess tax expense from share-based
      compensation                                  (684)          (586)
     Dividends paid                             (253,558)      (251,808)
     Changes in cash overdraft position          (52,000)        52,000
     Purchase of stock                           (26,019)      (273,000)
                                                 --------      ---------

  NET CASH USED IN FINANCING ACTIVITIES         (330,383)      (472,573)

  EFFECT OF EXCHANGE RATE CHANGES ON CASH          18,531        (7,462)

  NET INCREASE (DECREASE) IN CASH AND CASH
   EQUIVALENTS                                    269,026      (164,060)

  CASH AND CASH EQUIVALENTS AT BEGINNING OF
   YEAR                                            67,777        231,837
                                                   ------        -------

  CASH AND CASH EQUIVALENTS AT END OF YEAR       $336,803        $67,777
                                                 ========        =======

First Call Analyst:
FCMN Contact:

Photo: http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGO

SOURCE: Genuine Parts Company

CONTACT: Jerry W. Nix, Vice Chairman and CFO, +1-770-612-2048; Sidney G.
Jones, Vice President - Investor Relations, +1-770-818-4628


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