Genuine Parts Company
) revealed a 19.8% rise in EPS to $1.03 in the fourth quarter of
2012 from 86 cents in the corresponding quarter of 2011, beating
the Zacks Consensus Estimate by 10 cents. Net income increased
18.7% to $160.2 million from $135.0 million in 2011.
Revenues went up 3.5% to $3.1 billion, which compared with the
Zacks Consensus Estimate of $3.2 billion. The revenue increase
was driven by respectable sales growth in three of the company's
Revenues in the Automotive segment rose 4.9% to $1.5 billion,
Motion Industries or Industrial segment inched up 2.1% to $1.1
billion, and S.P. Richards or Office Products Group grew 2.9% to
$402.9 million. However, EIS or Electrical segment revenues
inched down 1.6% to $135.4 million
For full year 2012, Genuine Parts reported a 15.6% increase in
profits to $4.14 per share from $3.58 in 2011, exceeding the
Zacks Consensus Estimate of $4.05. Net income escalated 14.7% to
$648.0 million from $565.1 million in 2011. Revenues increased
4.5% to $13.0 billion, nearly meeting the Zacks Consensus
Estimate of $13.1 billion.
Revenues in the Automotive segment scaled up 4.3% to $6.3
billion, reflecting solid fundamentals in the automotive
aftermarket, including the overall aging of the vehicle
population. Revenues in the Industrial segment rose 6.7% to $4.5
billion driven by the company's internal growth initiatives and
strength in the manufacturing sector.
Revenues in the Office Products Group were flat at $1.7 billion
during the year. Revenues in the Electrical segment improved 4.5%
to $582.8 million.
Genuine Parts also announced an increase in its annual dividend
payment, making 2013 the 57th consecutive year of increased
dividends paid to shareholders. The company's Board of Directors
announced an 8.6% increase in cash dividend to an annual rate of
$2.15 per share compared with the previous dividend of $1.98 per
share. The increased quarterly cash dividend of $0.5375 per share
is payable on Apr 1, 2013 to shareholders of record Mar 8, 2013.
Genuine Parts had cash and cash equivalents of $403.1 million as
of Dec 31, 2012, down from $525.1 million as of Dec 31, 2011.
Long-term debt remained unchanged at $500 million as of Dec 31,
2012 compared with the corresponding period a year ago.
In 2012, Genuine Parts' net cash flow from operations improved
45.0% to $906.4 million from $624.9 million in the prior-year,
due to higher profits and favorable changes in operating assets
and liabilities. Capital expenditures decreased marginally to
$102.0 million from $103.5 million in 2011.
Genuine Parts has undertaken various initiatives to boost sales
and earnings, such as product line expansion, penetration into
new markets and cost-saving activities. The company relies on a
diverse product portfolio for top-line and bottom-line growth.
Currently, the company retains a Zacks Rank #3 on its stock,
which translates to a Hold rating for the short term (1-3
Few stocks that are performing well in the industry where Genuine
Parts operates include
Commercial Vehicle Group Inc.
). They carry a Zacks Rank #1 (Strong Buy).
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