Genuine Parts Company Reports Fourth Quarter and Full Year Results for 201109:10 EST Tuesday, February 21, 2012- 4th Quarter Sales up 7% and EPS up 15% - - Record Sales and Earnings for 2011 -ATLANTA, Feb. 21, 2012 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) reports fourth quarter results and record sales and earnings for the year ended December 31, 2011.(Logo: http://photos.prnewswire.com/prnh/20081002/CLTH108LOGO )Tom Gallagher, Chairman and Chief Executive Officer, announced today that sales in 2011 were $12.5 billion, up 11% compared to 2010. Net income for the year was $565 million, an increase of 19% compared to $476 million in 2010. Earnings per share on a diluted basis were $3.58, up 19% compared to $3.00 in 2010. Mr. Gallagher stated, "Genuine Parts Company had another excellent year in 2011, highlighted by double-digit sales and earnings growth and record sales and earnings per share for the second consecutive year. We further strengthened our financial condition with increased net income, an expanded operating margin and a continued emphasis on effectively managing the balance sheet.  We are very proud of the job that was done throughout our organization."Mr. Gallagher added, "All four of our business segments produced top line growth for the year.  The Automotive Group reported an 8% sales increase for the year, and the positive sales trends for this segment in 2011 reflect the ongoing solid fundamentals in the automotive aftermarket, including the overall aging of the vehicle population.  Motion Industries, our industrial distribution company, generated a 19% sales increase with the strong double-digit sales growth at Motion driven by the combination of good internal growth initiatives and the strength in the manufacturing sector of the economy.  EIS, our Electrical distribution company, had another outstanding year as well, and sales were up 24%.  S.P. Richards, our Office Products Group, reported a 3% increase in revenues in 2011.  We were pleased to show some growth in such a difficult environment for the office products industry."Fourth Quarter 2011Sales increased 7% to $3.0 billion in the fourth quarter ended December 31, 2011, compared to sales of $2.8 billion for the same period in 2010.  Net income in the fourth quarter was $135 million, an increase of 14% compared to $119 million in 2010.  Diluted earnings per share in the fourth quarter were 86 cents, up 15% compared to 75 cents per share for the fourth quarter of 2010.In reviewing the quarter, Mr. Gallagher commented, "Overall, our businesses continued to perform well in the fourth quarter.  Our Automotive sales were up 6%, our Industrial Group sales were up 13%, our Electrical Group sales were up 10% and our Office Products Group sales were down slightly for the quarter."Mr. Gallagher concluded, "We enter 2012 with a continued commitment to growing sales and earnings, generating solid cash flows and maintaining a strong balance sheet. Further progress in each of these important areas will keep the Company moving ahead and they will help to insure another successful year in 2012." Conference CallGenuine 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 877-331-5106, conference ID 46254235.  A replay will also be available on the Company's website or at 855-859-2056, conference ID 46254235, two hours after the completion of the call until 12:00 a.m. EST on March 6, 2012.Forward Looking StatementsSome 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 with which we do business, 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 2010 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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended Dec. 31,Year Ended Dec. 31,2011201020112010(Unaudited)(in thousands, except per share data)Net sales$3,014,135$2,807,728$12,458,877$11,207,589Cost of goods sold2,121,5351,990,6008,852,8377,954,645Gross profit892,600817,1283,606,0403,252,944Operating expenses:Selling, administrative & other expenses660,428608,8322,626,2982,401,829Depreciation and amortization21,99721,91088,93689,332682,425630,7422,715,2342,491,161Income before income taxes210,175186,386890,806761,783Income taxes75,21867,736325,690286,272Net income$134,957$118,650$565,116$475,511Basic net income per common share$.87$.75$3.61$3.01Diluted net income per common share$.86$.75$3.58$3.00Weighted average common shares outstanding155,567157,543156,656158,032Dilutive effect of stock options and   non-vested restricted stock awards1,0957751,004429Weighted average common shares outstanding ?   assuming dilution156,662158,318157,660158,461GENUINE PARTS COMPANY and SUBSIDIARIESSEGMENT INFORMATION AND FINANCIAL HIGHLIGHTSThree Months Ended Dec. 31,Year Ended Dec. 31,2011201020112010(Unaudited)(in thousands)Net sales:   Automotive$1,460,152$1,376,734$6,061,424$5,608,101   Industrial1,032,719915,1664,173,5743,521,863   Office Products391,403394,9791,689,3681,641,963   Electrical/Electronic Materials137,601125,603557,537449,770   Other (1)(7,740)(4,754)(23,026)(14,108)      Total net sales$3,014,135$2,807,728$12,458,877$11,207,589Operating profit:   Automotive$89,879$82,123$467,806$421,109   Industrial89,13973,796337,628255,616   Office Products38,14938,076134,124131,746   Electrical/Electronic Materials10,2838,75440,66330,910   Total operating profit227,450202,749980,221839,381   Interest expense, net(5,628)(6,610)(24,608)(26,598)   Other, net(11,647)(9,753)(64,807)(51,000)      Income before income taxes $210,175$186,386$890,806$761,783Capital expenditures$39,537$26,448$103,469$85,379Depreciation and amortization$21,997$21,910$88,936$89,332(1) Represents the net effect of discounts, incentives and freight billed reported as a component of net sales.GENUINE PARTS COMPANY and SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETSDec. 31,Dec. 31,20112010(in thousands)ASSETSCURRENT ASSETSCash and cash equivalents$525,054$529,968Trade accounts receivable, net1,461,0111,364,406Merchandise inventories, net2,261,9972,224,717Prepaid expenses and other current assets328,534295,796   TOTAL CURRENT ASSETS4,576,5964,414,887Goodwill and other intangible assets, less accumulated amortization279,775209,548Deferred tax asset250,906157,392Other assets272,110199,087Net property, plant and equipment500,204484,130TOTAL ASSETS$5,879,591$5,465,044LIABILITIES AND EQUITYCURRENT LIABILITIESTrade accounts payable$1,440,762$1,374,930Current portion of debt-250,000Income taxes payable35,26723,145Dividends payable70,02164,600Other current liabilities266,023259,139   TOTAL CURRENT LIABILITIES1,812,0731,971,814Long-term debt500,000250,000Retirement and other post-retirement benefit liabilities493,721258,807Other long-term liabilities280,978181,709Common stock155,651157,636Retained earnings and other3,109,6222,934,535Accumulated other comprehensive loss(482,038)(298,352)   TOTAL PARENT EQUITY2,783,2352,793,819Noncontrolling interests in subsidiaries9,5848,895   TOTAL EQUITY2,792,8192,802,714TOTAL LIABILITIES AND EQUITY$5,879,591$5,465,044GENUINE PARTS COMPANY and SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended Dec. 31,20112010(in thousands)OPERATING ACTIVITIES:   Net income$565,116$475,511   Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization88,93689,332   Share-based compensation7,5477,016   Excess tax benefits from share-based compensation(5,356)(3,251)   Other(5,349)10,309   Changes in operating assets and liabilities(25,967)99,746NET CASH PROVIDED BY OPERATING ACTIVITIES624,927678,663INVESTING ACTIVITIES:   Purchases of property, plant and equipment(103,469)(85,379)   Acquisitions and other(128,028)(86,969)NET CASH USED IN INVESTING ACTIVITIES(231,497)(172,348)FINANCING ACTIVITIES:   Proceeds from debt250,000-   Payments on debt(250,000)-   Stock options exercised(1,049)9,085   Excess tax benefits from share-based compensation5,3563,251   Dividends paid(276,369)(257,898)   Purchase of stock(122,078)(75,007)NET CASH USED IN FINANCING ACTIVITIES(394,140)(320,569)EFFECT OF EXCHANGE RATE CHANGES ON CASH(4,204)7,419NET  (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS(4,914)193,165CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR529,968336,803CASH AND CASH EQUIVALENTS AT END OF YEAR$525,054$529,968SOURCE Genuine Parts CompanyFor further information: Jerry W. Nix, Vice Chairman and CFO, +1-770-612-2048, or Sidney G. Jones, Vice President, Investor Relations, +1-770-818-4628