Thomas C. Gallagher, Chairman and Chief Executive Officer of Genuine Parts Company, announced Oct. 20 that record sales totaling $4.0 billion were up 8% compared to the third quarter of 2013.
Net income for the quarter was $190.5 million compared to $173.7 million recorded in the same period of the previous year. Earnings per share on a diluted basis were $1.24 compared to $1.12 for the third quarter last year, up 11%.
For the nine months ended September 30, 2014, sales totaled $11.5 billion, up 9% compared to the same period in 2013. Net income for the nine months was $545.7 million compared to $534.5 million recorded in the previous year. Earnings per share on a diluted basis were $3.53 compared to $3.43 for the same period last year.
As previously disclosed, in association with the April 1, 2013 acquisition of GPC Asia Pacific, the company's initial investment was remeasured and, net of certain one-time purchase accounting costs, amounted to a pre-tax income adjustment of approximately $36 million, or $0.22 diluted earnings per share, in the second quarter of 2013. Additionally, a pre-tax expense adjustment of $3 million, or $0.01 diluted earnings per share, was recorded in the third quarter of 2013.
Before the one-time adjustment in 2013, net income for the nine months of $545.7 million was up 9% compared to the previous year. Earnings per share on a diluted basis of $3.53 were up 10% compared to the same period in 2013 excluding the adjustment.
"We are pleased to report another quarter of record sales as well as a solid 10% comparative earnings increase,” Gallagher said. “Our 8% total sales increase includes approximately 5.4% underlying sales growth and a 3.3% contribution from acquisitions offset by a currency headwind of approximately 0.5%. Our overall sales growth was also supported by increases in each of our four business segments, with sales for the Automotive Group up 4%, which essentially represents our core automotive growth for the quarter. Sales at Motion Industries, our Industrial Group, were up 10% including 8% underlying growth and 3% from acquisitions offset by a currency headwind of approximately 1%. Sales at EIS, our Electrical/Electronic Group, increased by 35% due to acquisitions. Sales for S. P. Richards, our Office Products Group, were up 15% and include 8% underlying growth and 7% from acquisitions.
"In the third quarter, we achieved sales and earnings growth, produced operating margin improvement, generated solid cash flows and maintained a strong balance sheet,” he continued. “These are important and ongoing core objectives for us and the company is well positioned to show continued improvement in these areas in the periods ahead."
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