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): October 18, 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 October 18, 2006, Genuine Parts Company issued a press release announcing its results of operations for the third quarter and nine months ended September 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 October 18, 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
October 18, 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 October 18, 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
THIRD QUARTER AND NINE MONTHS OF 2006

Atlanta, Georgia, October 18, 2006 — Genuine Parts Company (NYSE: GPC) reported record sales and earnings for the third quarter and nine months ended September 30, 2006. Tom Gallagher, Chairman, President and Chief Executive Officer, announced today that sales totaling $2.7 billion were up 6% compared to the third quarter of 2005. Net income was $121.3 million, an increase of 9%, compared to $110.9 million for the third quarter of 2005. On a per share diluted basis, net income was 71 cents, up 13% compared to 63 cents for the third quarter last year.

For the nine months ended September 30, 2006, sales totaled $7.9 billion, up 7% compared to the same period in 2005. Net income for the nine months was $355.9 million, an increase of 8% over $328.4 million recorded in the previous year. Earnings per share on a diluted basis were $2.06, up 10% compared to $1.87 for the same period last year.

Mr. Gallagher stated, “We are pleased to report record levels of revenues and earnings for the 3^rd Quarter of 2006. Again this quarter, each of our four business segments contributed to the overall sales growth for the Company. Motion Industries, our Industrial Group, grew sales by 11% and EIS, our Electrical Group, posted a 23% sales increase for the quarter. Business conditions in the industries served by the industrial and electrical operations have remained strong and we are expecting another period of good results from these groups in the fourth quarter. S.P. Richards, our Office Products Group, generated a 5% sales increase for the quarter and the Automotive Group increased sales by 1% in the quarter. Our ongoing sales initiatives, combined with positive business indicators in all four of our businesses, provide each of our segments with continued growth opportunities in the fourth quarter of 2006 and we anticipate solid performances from all four groups.”

Page 2

Mr. Gallagher further commented, “The Balance Sheet at September 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 remain, first, the dividend, which was increased in 2006 for the 50^th consecutive year. Another priority for cash has been opportunistic share repurchases and, as part of our share repurchase program, we have purchased 2.9 million shares of our Company stock thus far in 2006. Other key uses for cash remain the ongoing reinvestment in each of our businesses and strategic complimentary types of acquisitions.”

Mr. Gallagher concluded. “We are pleased with our results for the quarter and nine months and we are encouraged by the opportunities to show further progress in the 4^th Quarter.”

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. Eastern time to discuss the results of the quarter and the future outlook. Interested parties may listen by dialing 877-422-4780, conference ID 7552063. A replay will also be available at 800-642-1687, conference ID 7552063, until 12:00 a.m. Eastern time on November 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 Canada through its Motion Industries subsidiary. S. P. Richards Company, the Office Products Group, distributes business 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 September 30,				Nine Months Ended September 30,
	2006		2005		2006		2005
	(Unaudited)
	(in thousands, except per share data)
Net sales	$	2,699,641	$	2,555,503	$	7,914,998	$	7,373,361
Cost of goods sold		1,868,346		1,777,001		5,455,044		5,097,122
		831,295		778,502		2,459,954		2,276,239
Selling, administrative & other expenses		634,445		598,403		1,883,115		1,744,092
Income before income taxes		196,850		180,099		576,839		532,147
Income taxes		75,517		69,223		220,901		203,706
Net income	$	121,333	$	110,876	$	355,938	$	328,441
Basic net income per common share	$	.71	$	.64	$	2.07	$	1.88
Diluted net income per common share	$	.71	$	.63	$	2.06	$	1.87
Weighted average common shares outstanding		170,912		173,929		171,950		174,320
Dilutive effect of stock options and
non-vested restricted stock awards		825		956		897		968
Weighted average common shares outstanding –		171,737		174,885		172,847		175,288
assuming dilution

GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS

	Three Months Ended Sept. 30,						Nine Months Ended Sept. 30,
	2006			2005			2006			2005
	(Unaudited)
	(in thousands, except ratio analysis)
Net sales:
Automotive	$	1,345,595		$	1,329,083		$	3,935,614		$	3,792,821
Industrial		791,650			711,201			2,336,430			2,100,532
Office Products		459,093			437,799			1,352,277			1,250,321
Electrical/Electronic Materials		107,356			87,041			306,846			255,078
Other (1)		(4,053	)		(9,621	)		(16,169	)		(25,391	)
Total net sales	$	2,699,641		$	2,555,503		$	7,914,998		$	7,373,361
Operating profit:
Automotive	$	112,135		$	108,551		$	321,390		$	314,638
Industrial		62,031			53,680			178,619			152,288
Office Products		35,344			33,638			121,563			115,276
Electrical/Electronic Materials		6,059			4,694			17,184			12,716
Total operating profit		215,569			200,563			638,756			594,918
Interest expense, net		(6,708	)		(8,159	)		(20,295	)		(23,369	)
Other, net		(12,011	)		(12,305	)		(41,622	)		(39,402	)
Income before income taxes	$	196,850		$	180,099		$	576,839		$	532,147
Capital expenditures	$	34,564		$	18,986		$	93,155		$	59,310
Depreciation and amortization	$	20,236		$	17,169		$	55,491		$	51,429
Current ratio								3.1/1			2.9/1
Total debt to total capitalization								15.2	%		15.9	%

(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

	September 30,		September 30,
	2006		2005
	(Unaudited)
	(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	214,394	$	339,505
Trade accounts receivable		1,301,384		1,227,836
Merchandise inventories		2,189,845		2,157,824
Prepaid expenses and other current assets		212,908		167,958
TOTAL CURRENT ASSETS		3,918,531		3,893,123
Goodwill and other intangible assets		62,398		62,478
Other assets		499,890		430,400
Total property, plant and equipment, net		431,123		383,292
TOTAL ASSETS	$	4,911,942	$	4,769,293
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	1,013,215	$	1,041,335
Other borrowings		—		908
Income taxes payable		27,334		50,994
Dividends payable		57,616		54,357
Other current liabilities		178,137		183,822
TOTAL CURRENT LIABILITIES		1,276,302		1,331,416
Long-term debt		500,000		500,000
Other long-term liabilities		130,294		109,888
Deferred income taxes		160,764		121,160
Minority interests in subsidiaries		59,570		56,362
Common stock		170,403		173,522
Retained earnings and other		2,614,609		2,476,945
TOTAL SHAREHOLDERS’ EQUITY		2,785,012		2,650,467
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,911,942	$	4,769,293

GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
	2006			2005
	(Unaudited)
	(in thousands)
OPERATING ACTIVITIES:
Net income	$	355,938		$	328,441
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		55,491			51,429
Other		11,097			6,706
Changes in operating assets and liabilities		(6,317	)		107,251
NET CASH PROVIDED BY OPERATING ACTIVITIES		416,209			493,827
INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(93,155	)		(59,310	)
Other		(11,614	)		11,428
NET CASH USED IN INVESTING ACTIVITIES		(104,769	)		(47,882	)
FINANCING ACTIVITIES:
Net payments on credit facilities		(881	)		(59	)
Stock options exercised		6,183			16,021
Excess tax benefits from share-based compensation		1,820			—
Dividends paid		(170,530	)		(161,536	)
Purchase of stock		(122,549	)		(95,806	)
NET CASH USED IN FINANCING ACTIVITIES		(285,957	)		(241,380	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		25,483			204,565
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		188,911			134,940
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	214,394		$	339,505