Genuine Parts Company Reports First Quarter 2010 Results
PRNewswire-FirstCall
ATLANTA

Genuine Parts Company reports sales and earnings for the first quarter ended March 31, 2010.

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

Thomas C. Gallagher, Chairman, President and Chief Executive Officer, announced today that sales totaling $2.6 billion were up 6% compared to the first quarter of 2009. Net income for the quarter was $100.6 million, an increase of 13% over $89.2 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 63 cents, up 13% compared to 56 cents for the first quarter last year.

Mr. Gallagher stated, "We are pleased to report a good start to 2010 with three of our four business segments generating sales growth for the first quarter. The Automotive Group reported a 6% sales increase for the quarter, consistent with our results in the fourth quarter of 2009. We are the most encouraged by the sales results in our Industrial and Electrical Groups, which improved significantly from their trends in the fourth quarter and full year in 2009. Motion Industries, our Industrial Group, had a 9% sales increase in the quarter, and EIS, our Electrical Group, had a 16% increase. Both Motion and EIS are benefiting from their internal growth initiatives as well as improving end market conditions in their respective industries. Additionally, Motion completed the BC Bearing acquisition on March 1st and EIS acquired Fay Wire on January 1st. Results at S.P. Richards, our Office Products Group, were down only slightly and improved from the fourth quarter, ending the first quarter down 1%."

Mr. Gallagher concluded, "We are encouraged by this solid start to the year and we feel that each of our businesses is well positioned to contribute to our primary goals of producing solid sales results, improving operating margins, generating strong cash flows and maintaining the strength of our balance sheet. As a result, we feel confident in our ability to drive sales and earnings growth in 2010."

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. ET to discuss the results of the quarter 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 65675645. A replay will also be available on the Company's website or at 800-642-1687, conference ID 65675645, two hours after the completion of the call until 12:00 a.m. Eastern time on May 1, 2010.

Forward Looking Statements

Some statements in this report, 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 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 demand for the Company's products and services, competitive product, service and pricing pressures, including internet related initiatives, changes in financial markets, including particularly the capital and credit markets, impairment of financial institutions, the effectiveness of the Company's promotional, marketing and advertising programs, changes in laws and regulations, including changes in accounting and taxation guidance, the uncertainties of litigation, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2009 and from time to time in the Company's subsequent 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 subsequent Forms 10-K, 10-Q, Form 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., Canada and Mexico 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 March
                                                           31,
                                                      2010           2009
                                                      ----           ----
                                                      (Unaudited)
                                                (in thousands, except per
                                                       share data)

  Net sales                                     $2,602,115     $2,444,496
  Cost of goods sold                             1,841,640      1,712,295
                                                 ---------      ---------
  Gross profit                                     760,475        732,201

  Operating Expenses:
  Selling, administrative & other expenses         576,217        565,012
  Depreciation and amortization                     22,143         22,521
                                                    ------         ------
                                                   598,360        587,533

  Income before income taxes                       162,115        144,668
  Income taxes                                      61,506         55,509
                                                    ------         ------
  Net income                                      $100,609        $89,159
                                                  ========        =======

  Basic net income per common share                   $.63           $.56
  Diluted net income per common share                 $.63           $.56

  Weighted average common shares
   outstanding                                     158,771        159,444
  Dilutive effect of stock options and
   non-vested restricted stock awards                  408            219
                                                       ---            ---
  Weighted average common shares
   outstanding - assuming dilution                 159,179        159,663
                                                   =======        =======





              GENUINE PARTS COMPANY and SUBSIDIARIES
           SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS

                                                 Three Months Ended
                                                     March 31,
                                                   2010        2009
                                                   ----        ----
                                                    (Unaudited)
                                                  (in thousands)

  Net sales:
     Automotive                              $1,290,401  $1,219,128
     Industrial                                 803,302     736,501
     Office Products                            410,511     412,748
     Electrical/Electronic Materials            100,298      86,133
     Other (1)                                   (2,397)    (10,014)
                                                 ------     -------
        Total net sales                      $2,602,115  $2,444,496
                                             ==========  ==========

  Operating profit:
     Automotive                                 $88,905     $87,407
            Industrial                           48,846      34,175
     Office Products                             36,559      38,728
     Electrical/Electronic Materials              6,815       5,668
                                                  -----       -----
     Total operating profit                     181,125     165,978
     Interest expense, net                       (6,733)     (7,096)
     Other, net                                 (12,277)    (14,214)
                                                -------     -------
        Income before income taxes             $162,115    $144,668
                                               ========    ========

  Capital expenditures                           $9,850     $14,097
                                                 ======     =======

  Depreciation and amortization                 $22,143     $22,521
                                                =======     =======

    (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
                  -------------------------------------

                                                March 31,      March 31,
                                                       2010          2009
                                                       ----          ----
                                                       (Unaudited)
                                                      (in thousands)
  ASSETS
  CURRENT ASSETS
  Cash and cash equivalents                        $333,537      $133,281
  Trade accounts receivable, net                  1,323,980     1,211,337
  Merchandise inventories, net                    2,211,457     2,253,036
  Prepaid expenses and other current assets         277,257       222,253
                                                    -------       -------

     TOTAL CURRENT ASSETS                         4,146,231     3,819,907

  Goodwill and other intangible assets, less
   accumulated amortization                         204,907       158,427
  Deferred tax asset                                167,632       216,653
  Other assets                                      172,723       117,502
  Net property, plant and equipment                 477,269       412,366
                                                    -------       -------

  TOTAL ASSETS                                   $5,168,762    $4,724,855
                                                 ==========    ==========

  LIABILITIES AND EQUITY
  CURRENT LIABILITIES
  Trade accounts payable                         $1,185,177      $964,267
  Income taxes payable                               78,609        70,883
  Dividends payable                                  65,083        63,779
  Other current liabilities                         185,260       158,445
                                                    -------       -------

     TOTAL CURRENT LIABILITIES                    1,514,129     1,257,374

  Long-term debt                                    500,000       500,000
  Other long-term liabilities                       169,500       110,207
  Retirement and other post-retirement
   benefit liabilities                              299,567       448,844

  Common stock                                      158,792       159,446
  Retained earnings and other                     2,802,369     2,671,224
  Accumulated other comprehensive loss             (283,579)     (491,917)
                                                   --------      --------
     TOTAL PARENT EQUITY                          2,677,582     2,338,753

  Noncontrolling interests in subsidiaries            7,984        69,677
                                                      -----        ------
     TOTAL EQUITY                                 2,685,566     2,408,430
                                                  ---------     ---------

  TOTAL LIABILITIES AND EQUITY                   $5,168,762    $4,724,855
                                                 ==========    ==========





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

                                                        Three Months
                                                       Ended March 31,
                                                        2010        2009
                                                        ----        ----
                                                         (Unaudited)
                                                       (in thousands)

  OPERATING ACTIVITIES:
     Net income                                     $100,609     $89,159
     Adjustments to reconcile net income to net
      cash provided by operating activities:
     Depreciation and amortization                    22,143      22,521
     Share-based compensation                          1,091       2,370
     Other                                                19         807
     Changes in operating assets and liabilities      15,783      85,565
                                                      ------      ------

  NET CASH PROVIDED BY OPERATING ACTIVITIES          139,645     200,422

  INVESTING ACTIVITIES:
     Purchases of property, plant and equipment       (9,850)    (14,097)
     Acquisitions and other                          (65,772)     (5,779)
                                                     -------      ------

  NET CASH USED IN INVESTING ACTIVITIES              (75,622)    (19,876)

  FINANCING ACTIVITIES:
     Stock options exercised                           2,581         142
     Dividends paid                                  (63,544)    (62,148)
     Changes in cash overdraft position                    -     (52,000)
     Purchase of stock                                (9,306)       (116)
                                                      ------        ----

  NET CASH USED IN FINANCING ACTIVITIES              (70,269)   (114,122)

  EFFECT OF EXCHANGE RATE CHANGES ON CASH              2,980        (920)
                                                       -----        ----

  NET (DECREASE) INCREASE IN CASH AND CASH
   EQUIVALENTS                                        (3,266)     65,504

  CASH AND CASH EQUIVALENTS AT BEGINNING OF
   PERIOD                                            336,803      67,777
                                                     -------      ------

  CASH AND CASH EQUIVALENTS AT END OF PERIOD        $333,537    $133,281
                                                    ========    ========

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, or Sidney
G. Jones, Vice President-Investor Relations, +1-770-818-4628


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