Genuine Parts Q4 Earnings Meet View, Sales Top; Boosts Dividend

(RTTNews) - Automotive aftermarket distributor Genuine Parts Co. (GPC) Tuesday reported profit for the fourth quarter that grew ten percent from last year, reflecting sales growth across all four of its business segments.

Earnings per share matched analysts' expectations, while quarterly sales topped their estimates. Separately, the company declared a seven percent higher quarterly cash dividend.

"We are pleased to report another solid quarter of sales and earnings growth for Genuine Parts Company," Chairman and CEO Tom Gallagher said.

The Atlanta, Georgia-based company reported net income of $165.56 million or $1.07 per share for the fourth quarter, lower than $150.47 million or $0.97 per share in the prior-year quarter.

On average, eleven analysts polled by Thomson Reuters expected the company to report earnings of $1.07 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 9 percent to $3.82 billion from $3.52 billion in the same quarter last year, and topped ten Wall Street analysts' consensus estimate of $3.73 billion.

The company noted that the sales growth included a 2.7 percent contribution from acquisitions and 7.6 percent underlying sales growth, partially offset by 1.6 percent headwind from currency.

The company's automotive group sales were up 4 percent at $1.99 billion, and sales for industrial group or motion industries, increased 10 percent to $1.20 billion from a year ago.

Sales for office products group or S.P. Richards, grew 22 percent to $469 million, and electrical/electronic materials group sales improved 23 percent to $177 million from the prior-year quarter.

Operating expenses for the quarter grew to $881.24 million from $856.45 million in the year-ago quarter. Income taxes totaled $100 million, compared to $85 million last year.

"…we remain committed to our core objectives of growing sales and earnings, showing continued operating margin improvement, generating solid cash flows and maintaining a strong balance sheet. Progress in each of these important areas will keep the Company moving ahead and will help to ensure another successful year in 2015," Gallagher added.

Separately, the company's board declared a seven percent higher quarterly cash dividend of $0.615 per share, payable April 1 to shareholders on record March 6, 2015. The company said it has paid a cash dividend every year since going public in 1948, and that 2015 marks the 59th consecutive year of increased dividends paid to shareholders.

Further, the company named Robert Milstead as the senior vice president of digital, Thomas Davis as vice president of supplier business IT and Jennifer Ellis as corporate secretary and associate counsel.

In Tuesday's regular trading session, GPC is currently trading at $98.28, up $1.27 or 1.31% on a volume of 0.11 million shares. In the past 52-week period, the stock has been trading in a range of $82.15 to $109.00.