DOW JONES NEWSWIRE
Genuine Parts Co.'s (GPC) fourth-quarter net income slipped 30%
as weak consumer spending and a decline in industrial production
hurt sales.
Analysts were hopeful that retailers like Genuine Parts would be
somewhat insulated from the recession as consumers opt out of
buying new cars and instead attend to vehicle maintenance
concerns.
But Genuine Parts, which operates the National Automotive Parts
Associated brand retail stores, posted net income of $87.8 million,
or 55 cents a share, down from $126.1 million, or 75 cents a
share.
Net sales dropped 4% to $2.52 billion amid a 6% drop in
auto-parts sales and a 5% decline in the company's office-products
division.
Analysts expected earnings of 56 cents a share and revenue of
$2.55 billion, according to Thomson Reuters.
Gross margin increased to 29.8% from 29.6%, but overhead costs
climbed 4.7%.
Chief Executive Thomas C. Gallagher, while noting the company's
near-term outlook "is a bit more cautious than it might be in more
normal times," expressed optimism for each of the company's four
business lines longer term. The company didn't disclose its
expectations.
Genuine Parts boosted its dividend last month 2.6%.
Shares were off 3.8% to $31.90 just after the opening bell
Tuesday.
-By Katherine E. Wegert, Dow Jones Newswires; 201-938-5400;
katherine.wegert@dowjones.com