exv99w1

GENUINE PARTS COMPANY
REPORTS RESULTS FOR 2003
AND ANNOUNCES 48th CONSECUTIVE YEAR
INCREASE IN DIVIDENDS

Atlanta, Georgia, February 17, 2004 — Genuine Parts Company (NYSE: GPC) completed its 76th year of operations and reports sales and earnings for the year ended December 31, 2003.

Sales in 2003 were $8.4 billion, up 2.3% compared to the previous year. Net income for the year, before the cumulative effect of changes in accounting principles related to cash consideration from vendors and goodwill as discussed below, was $354 million, compared to $368 million, for the same period in the prior year, a decrease of 4%. Diluted earnings per share, excluding the cumulative effect adjustments, were $2.03 versus $2.10 per share in 2002, a decrease of 3%. After accounting changes recorded in the first quarter of 2003 and 2002 as discussed below, net income was $334 million, or $1.91 diluted income per share, compared to a net loss of $27.6 million, or $.16 diluted loss per share in 2002.

Larry Prince, Chairman of the Board of Directors, stated, “Total sales for 2003 reached a new record level for us, exceeding our previous high set in the year 2000. We are disappointed that earnings before the cumulative effect adjustments were not on the plus side, given our sales improvement. While we were able to do a commendable job of expense control, our gross profit margins before the reclassification of vendor consideration were below those of the previous year and negatively impacted our earnings picture.”

Mr. Prince added, “As you may recall, in the first quarter of 2003, the Company adopted Financial Accounting Standards Board’s EITF No. 02-16 related to the accounting treatment for cash consideration received from vendors. Under this new method, vendor allowances are generally considered a reduction in the cost of goods sold. As a result of EITF No. 02-16, a non-cash charge of $20 million was recorded as of January 1, 2003, representing the cumulative effect of a change in accounting principle. In addition, in the first quarter of 2002, we completed our impairment testing for goodwill in conjunction with the new provisions introduced in FASB Statement No. 142, resulting in a non-cash charge of $395 million.”

Sales increased 5% to $2.09 billion in the fourth quarter ended December 31, 2003, as compared to $1.99 billion for the same period in 2002. Diluted earnings per share in the fourth quarter were $.50 compared to the prior year of $.52 per share, a decrease of 4%.

Mr. Prince commented, “For the quarter, revenues in our Automotive Group were up 6%, a strong finish to the year and we were pleased to see the positive impact of our sales initiatives. Motion Industries, our Industrial Group, increased sales by 2% for the fourth quarter, and S. P. Richards, our Office Products Group, had an increase of 4% for the quarter. Sales for EIS, our Electrical Group, were up slightly for the fourth quarter, their first comparative increase in quite some time.”

Mr. Prince concluded, “We are optimistic that the stronger sales trend in the final quarter will carry over into 2004. GPC is in a position of market leadership in all our businesses, but we enter the new year with a determination and explicit plans to reach a higher level of growth.”

Genuine Parts Company also announced an increase of 2% in the regular quarterly cash dividend for 2004. On February 16, 2004, the Board of Directors increased the cash dividend payable to an annual rate of $1.20 per share compared with the previous dividend of $1.18 per share. The quarterly cash dividend of $.30 per share is payable April 1, 2004 to shareholders of record March 5, 2004.

Genuine Parts Company will hold a conference call today at 11:00 a.m. EST to discuss the results of the quarter, the year and the future outlook. Interested parties may listen by dialing 877-422-4780, conference ID 5086255. A replay will also be available at 800-642-1687 until 12:00 a.m. EST on March 2, 2004.

Statements in this release constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that its forward-looking statements involve risks and uncertainties. The Company undertakes no duty to update its forward-looking statements, which reflect the Company’s beliefs, expectations, and plans as of the present. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors include, but are not limited to, changes in general economic conditions, the growth rate of the market for the Company’s products and services, the ability to maintain favorable supplier arrangements and relationships, competitive product and pricing pressures, the effectiveness of the Company’s promotional, marketing and advertising programs, changes in laws and regulations, including changes in accounting and taxation guidance, the uncertainties of litigation, as well as other risks and uncertainties discussed from time to time in the Company’s filings with the Securities and Exchange Commission.

Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada and Mexico. The Company also distributes industrial replacement parts in the U.S. and Canada through its Motion Industries subsidiary. S. P. Richards Company, the Office Products Group, distributes product nationwide in the U.S. and in Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S. and Mexico.


	Three Months Ended Dec. 31,				Year Ended Dec. 31,

	2003		2002		2003			2002

	(Unaudited)
	(in thousands, except per share data)
Net sales	$	2,085,260	$	1,993,501	$	8,449,300		$	8,258,927
Cost of goods sold		1,404,316		1,337,317		5,826,684			5,704,749

		680,944		656,184		2,622,616			2,554,178
Selling, administrative & other expenses		547,469		506,222		2,050,873			1,948,442

Income before income taxes and accounting change		133,475		149,962		571,743			605,736
Income taxes		46,738		59,563		218,101			238,236

Net income before cumulative effect of a change in accounting principle		86,737		90,399		353,642			367,500
Cumulative effect of a change in accounting principle (1)		—		—		(19,541	)		(395,090	)

Net income (loss) after cumulative effect of a change in accounting principle	$	86,737	$	90,399	$	334,101		$	(27,590	)

Basic Net Income (Loss) per Common Share:
Before cumulative effect of a change in accounting principle	$	.50	$	.52	$	2.03		$	2.11
Cumulative effect of a change in accounting principle (1)		—		—		(.11	)		(2.27	)

Basic net income (loss)	$	.50	$	.52	$	1.92		$	(.16	)

Diluted Net Income (Loss) per Common Share:
Before cumulative effect of a change in accounting principle	$	.50	$	.52	$	2.03		$	2.10
Cumulative effect of a change in accounting principle (1)		—		—		(.12	)		(2.26	)

Diluted net income (loss)	$	.50	$	.52	$	1.91		$	(.16	)

Weighted average common shares outstanding		173,994		174,434		173,995			174,369
Dilutive effect of stock options and non-vested restricted stock awards		473		511		485			735

Weighted average common shares outstanding – assuming dilution		174,467		174,945		174,480			175,104

GENUINE PARTS COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS


			Three months ended Dec. 31,						Year ended Dec. 31,

			2003			2002			2003			2002

			(Unaudited)
			(In thousands)
Net sales:
	Automotive		$	1,094,619		$	1,032,737		$	4,477,508		$	4,335,362
	Industrial			561,446			551,030			2,253,947			2,246,124
	Office Products			362,000			347,529			1,457,149			1,396,453
	Electrical/Electronic Materials			74,463			74,117			297,618			315,826
	Other (1)			(7,268	)		(11,912	)		(36,922	)		(34,838	)

		Total net sales	$	2,085,260		$	1,993,501		$	8,449,300		$	8,258,927

Operating profit:
	Automotive		$	72,753		$	81,304		$	363,022		$	381,771
	Industrial			40,489			52,041			151,109			178,027
	Office Products			40,035			39,819			143,263			140,912
	Electrical/Electronic Materials			1,709			1,708			7,112			2,756

		Total operating profit		154,986			174,872			664,506			703,466
	Interest expense			(11,512	)		(11,972	)		(51,538	)		(59,640	)
	Other, net			(9,999	)		(12,938	)		(41,225	)		(38,090	)

		Income before income taxes and accounting changes	$	133,475		$	149,962		$	571,743		$	605,736

Capital expenditures			$	10,291		$	18,252		$	73,904		$	64,758

Depreciation and amortization			$	16,907		$	17,154		$	69,013		$	70,151

Current ratio										3.4/1			3.0/1

Total debt to total capitalization										22.7	%		27.1	%


ASSETS
			Dec. 31,		Dec. 31,
			2003		2002

			(in thousands)
CURRENT ASSETS
Cash and cash equivalents			$	15,393	$	19,995
Trade accounts receivable				1,084,874		1,039,843
Inventories				2,140,811		2,144,787
Prepaid and other current accounts				176,548		172,362

	TOTAL CURRENT ASSETS			3,417,626		3,376,987
Goodwill and other intangible assets				58,028		58,705
Other assets				297,851		292,312
Total property, plant and equipment, net				342,992		333,051

TOTAL ASSETS			$	4,116,497	$	4,061,055

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable			$	706,609	$	735,183
Current portion long-term debt and other borrowings				52,525		116,905
Income taxes				18,575		21,366
Dividends payable				51,331		50,557
Other current liabilities				187,891		186,919

		TOTAL CURRENT LIABILITIES		1,016,931		1,110,930
Long-term debt				625,108		674,796
Deferred income taxes				114,533		97,912
Minority interests in subsidiaries				47,642		47,408
Common stock				174,045		174,381
Retained earnings and other				2,138,238		1,955,628

		TOTAL SHAREHOLDERS’ EQUITY		2,312,283		2,130,009

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	4,116,497	$	4,061,055


				Year
				Ended Dec. 31,

				(in thousands)

				2003			2002

OPERATING ACTIVITIES:
		Net income (loss)		$	334,101		$	(27,590	)
		Adjustments to reconcile net income (loss) to net cash provided by operating activities:
			Cumulative effect of a change in accounting principle		19,541			395,090
			Depreciation and amortization		69,013			70,151
			Other		2,565			2,315
			Changes in operating assets and liabilities		(23,035	)		(167,558	)

NET CASH PROVIDED BY OPERATING ACTIVITIES					402,185			272,408
INVESTING ACTIVITIES:
		Purchase of property, plant and equipment			(73,904	)		(64,758	)
		Other			(1,371	)		4,095

NET CASH USED IN INVESTING ACTIVITIES					(75,275	)		(60,663	)
FINANCING ACTIVITIES:
	Net payments on credit facilities				(112,976	)		(101,069	)
	Stock options exercised				4,601			36,009
	Dividends paid				(204,556	)		(201,150	)
	Purchase of stock				(17,709	)		(11,615	)

NET CASH USED IN FINANCING ACTIVITIES					(330,640	)		(277,825	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH					(872	)		305

NET DECREASE IN CASH AND CASH EQUIVALENTS					(4,602	)		(65,775	)
	CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				19,995			85,770

	CASH AND CASH EQUIVALENTS AT END OF PERIOD			$	15,393		$	19,995


Contact:		Jerry W. Nix, Executive Vice President — Finance
		(770) 612-2048