8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 19, 2006

Genuine Parts Company
__________________________________________
(Exact name of registrant as specified in its charter)

Georgia	001-05690	58-0254510
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
2999 Circle 75 Pkwy, Atlanta, Georgia		30339
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 770.953.1700

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 19, 2006, Genuine Parts Company issued a press release announcing its results of operations for the second quarter and six months ended June 30, 2006. A copy of the press release is furnished with this Current Report on Form 8-K as exhibit 99.1.

The information, including the exhibits attached hereto contained in this Current Report on Form 8-K of Genuine Parts Company is being "furnished" and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 and Item 9.01 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or into any filing or other document pursuant to the Securities Exchange Act of 1934, as amended, except as otherwise expressly stated in any such filing.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

99.1 Earnings Press Release dated July 19, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Genuine Parts Company
July 19, 2006	By:	Jerry W. Nix
		Name: Jerry W. Nix
		Title: Vice Chairman and CFO

Exhibit Index

Exhibit No.	Description
99.1	Earnings Press Release dated July 19, 2006

EX-99.1

FOR IMMEDIATE RELEASE

Contact: Jerry W. Nix, Vice Chairman and CFO
(770) 612-2048

GENUINE PARTS COMPANY
REPORTS RECORD SALES AND EARNINGS FOR
SECOND QUARTER AND FIRST HALF OF 2006

Atlanta, Georgia, July 19, 2006 — Genuine Parts Company (NYSE: GPC) reported record sales and earnings for the second quarter and six months ended June 30, 2006. Tom Gallagher, Chairman, President and Chief Executive Officer, announced today that second quarter sales totaling $2.7 billion were up 8% compared to the second quarter of 2005. Net income was $120.7 million, an increase of 9%, compared to $111.0 million for the second quarter of 2005. On a per share diluted basis, net income was 70 cents, up 11% compared to 63 cents for the second quarter last year.

For the six months ended June 30, 2006, sales totaled $5.2 billion, up 8% compared to the same period in 2005. Net income for the six months was $234.6 million, an increase of 8% over $217.6 million recorded in the previous year. Earnings per share on a diluted basis were $1.35, up 9% compared to $1.24 for the same period last year.

Mr. Gallagher stated, “We are pleased to report record sales and earnings for the 2^nd Quarter of 2006. We continued to experience positive growth patterns in each of our four business segments. Motion Industries, our Industrial Group, grew sales by 10% and EIS, our Electrical Group, posted a 24% sales increase for the quarter. Business conditions remain strong for the industrial and electrical operations and we anticipate more good results from these groups in the second half of the year. S.P. Richards, our Office Products Group, generated a 6% sales increase for the quarter and the Automotive Group reported a 5% sales increase for the quarter. Our sales initiatives, combined with positive employment figures, GDP expansion and favorable aftermarket demographics, provide each of our segments with additional growth opportunities over the balance of 2006 and we anticipate solid performances from all four groups.”

Page 2

Mr. Gallagher further commented, “The balance sheet at June 30, 2006 remains in excellent condition and we continue to strengthen our financial position through strong earnings growth as well as working capital and asset management initiatives.”

Mr. Gallagher added, “The Company also continues to generate consistent and steady cash flows and our cash position remains strong. Our priorities for cash include the dividend, opportunistic share repurchases, the ongoing investment in each of our businesses and strategic bolt-on types of acquisitions. As part of our share repurchase program, we have purchased 2.0 million shares of our Company stock in 2006.”

Mr. Gallagher concluded, “We are pleased with our progress thus far in 2006 and we are encouraged by the opportunities for continued sales and earnings improvements over the last half of the year.”

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. EDT to discuss the results of the quarter and the future outlook. Interested parties may listen by dialing 877-422-4780, conference ID 2278206. A replay will also be available at 800-642-1687, conference ID 2278206, until 12:00 a.m. EDT on August 2, 2006.

Forward Looking Statements

Some 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, including internet-related initiatives, 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.

About Genuine Parts Company

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 in Canada through its Motion Industries subsidiary. S. P. Richards Company, the Office Products Group, distributes office products nationwide in the U.S. and Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S., Canada and Mexico.

GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended June 30,				Six Months Ended June 30,
	2006		2005		2006		2005
	(Unaudited)
	(in thousands, except per share data)
Net sales	$	2,661,805	$	2,475,657	$	5,215,357	$	4,817,858
Cost of goods sold		1,836,623		1,714,400		3,586,698		3,320,121
		825,182		761,257		1,628,659		1,497,737
Selling, administrative & other expenses		629,688		581,419		1,248,670		1,145,689
Income before income taxes		195,494		179,838		379,989		352,048
Income taxes		74,814		68,871		145,384		134,483
Net income	$	120,680	$	110,967	$	234,605	$	217,565
Basic net income per common share	$	.70	$	.64	$	1.36	$	1.25
Diluted net income per common share	$	.70	$	.63	$	1.35	$	1.24
Weighted average common shares outstanding		172,186		174,270		172,478		174,519
Dilutive effect of stock options and
non-vested restricted stock awards		893		962		925		971
Weighted average common shares outstanding –
assuming dilution		173,079		175,232		173,403		175,490

GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
	(Unaudited)
	(in thousands, except ratio analysis)
Net sales:
Automotive	$	1,362,230		$	1,294,783		$	2,590,019		$	2,463,738
Industrial		773,553			702,591			1,544,780			1,389,331
Office Products		427,229			401,593			893,184			812,522
Electrical/Electronic Materials		104,021			83,748			199,490			168,037
Other (1)		(5,228	)		(7,058	)		(12,116	)		(15,770	)
Total net sales	$	2,661,805		$	2,475,657		$	5,215,357		$	4,817,858
Operating profit:
Automotive	$	113,399		$	110,780		$	209,255		$	206,087
Industrial		59,073			50,355			116,588			98,608
Office Products		38,523			35,611			86,219			81,638
Electrical/Electronic Materials		6,272			4,713			11,125			8,022
Total operating profit		217,267			201,459			423,187			394,355
Interest expense, net		(6,415	)		(7,263	)		(13,587	)		(15,210	)
Other, net		(15,358	)		(14,358	)		(29,611	)		(27,097	)
Income before income taxes	$	195,494		$	179,838		$	379,989		$	352,048
Capital expenditures	$	31,070		$	19,556		$	58,591		$	40,324
Depreciation and amortization	$	17,632		$	17,189		$	35,255		$	34,260
Current ratio								3.1/1			3.1/1
Total debt to total capitalization								15.4	%		16.2	%

(1) Represents the net effect of discounts, incentives and freight billed reported as a component of net sales.

GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,		June 30,
	2006		2005
	(Unaudited)
	(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	189,145	$	260,538
Trade accounts receivable		1,307,071		1,225,674
Merchandise inventories		2,162,405		2,125,366
Prepaid expenses and other current assets		192,477		152,571
TOTAL CURRENT ASSETS		3,851,098		3,764,149
Goodwill and other intangible assets		62,504		62,615
Other assets		516,216		403,335
Total property, plant and equipment, net		416,135		380,692
TOTAL ASSETS	$	4,845,953	$	4,610,791
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable	$	1,018,914	$	974,846
Other borrowings		-0-		929
Income taxes payable		30,881		43,606
Dividends payable		58,104		54,450
Other current liabilities		148,024		154,522
TOTAL CURRENT LIABILITIES		1,255,923		1,228,353
Long-term debt		500,000		500,000
Other long-term liabilities		116,765		110,954
Deferred income taxes		159,304		116,809
Minority interests in subsidiaries		58,635		55,243
Common stock		171,308		174,061
Retained earnings and other		2,584,018		2,425,371
TOTAL SHAREHOLDERS’ EQUITY		2,755,326		2,599,432
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,845,953	$	4,610,791

GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2006			2005
	(Unaudited)
	(in thousands)
OPERATING ACTIVITIES:
Net income	$	234,605		$	217,565
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		35,255			34,260
Other		6,781			2,188
Changes in operating assets and liabilities		(30,627	)		63,214
NET CASH PROVIDED BY OPERATING ACTIVITIES		246,014			317,227
INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(58,591	)		(40,324	)
Other		2,816			6,271
NET CASH USED IN INVESTING ACTIVITIES		(55,775	)		(34,053	)
FINANCING ACTIVITIES:
Net payments on credit facilities		(881	)		(37	)
Stock options exercised		5,157			11,569
Excess tax benefits from share-based compensation		1,620			-0-
Dividends paid		(112,426	)		(107,125	)
Purchase of stock		(83,475	)		(61,983	)
NET CASH USED IN FINANCING ACTIVITIES		(190,005	)		(157,576	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		234			125,598
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		188,911			134,940
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	189,145		$	260,538