ATLANTA (July 22, 2013) — Genuine Parts Co., the parent of NAPA Auto Parts, generated record second-quarter net earnings of $216.4 million, a 28.3-percent surge over the year-ago period, on a 10.1-percent jump in sales to a record $3.68 billion, compared with the year-ago period.
The results were bolstered by the April 1 acquisition of the remaining 70 percent interest in GPC Asia Pacific (formerly Exego), which amounted to a positive pre-tax adjustment of approximately $36 million recorded in the second quarter, the company said.
"We are pleased to report record levels of sales and earnings for the second quarter," said Chairman and CEO Thomas Gallagher. "The progress in our operations was driven by the improved results in our automotive business. Sales for the Automotive Group were up 22 percent, consisting of core North American growth of approximately 6 percent and the positive impact of the Australasian acquisition.
"We were encouraged by the sequential improvement in our core sales growth in the quarter," he continued. "Likewise, GPC Asia Pacific performed as planned for the quarter and we continue to be excited about the growth opportunities we see in the Australasian aftermarket."
Operating profits for the automotive unit, which includes NAPA, surged 21.8 percent to $186.4 million on a 22.3-percent jump in sales to $2.01 billion for the quarter.
For the first half, Genuine Parts' net income rose 14.6 percent to $360.7 million on a 5.5-percent boost in sales to $6.87 billion, compared with the year-ago period. The NAPA division's operating profits climbed 14.9 percent to $307.4 million on a 13.3-percent increase in sales to $3.56 billion.