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): April 19, 2007

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 April 19, 2007, Genuine Parts Company issued a press release announcing its results of operations for the first quarter ended March 31, 2007. 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 Press Release dated April 19, 2007

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
April 19, 2007	By:	Jerry W. Nix
		Name: Jerry W. Nix
		Title: Vice Chairman and CFO

Exhibit Index

Exhibit No.	Description
99.1	Press Release dated April 19, 2007

EX-99.1

FOR IMMEDIATE RELEASE

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

GENUINE PARTS COMPANY
REPORTS RECORD FIRST QUARTER RESULTS
SALES INCREASED 4%, EPS INCREASED 8%

Atlanta, Georgia, April 19, 2007 — Genuine Parts Company (NYSE: GPC) reported record sales and earnings for the first quarter ended March 31, 2007. Thomas C. Gallagher, Chairman, President and Chief Executive Officer, announced today that sales totaling $2.65 billion were up 4% compared to the first quarter of 2006. Net income for the quarter was $121.6 million, an increase of 7% over $113.9 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 71 cents, up 8% compared to 66 cents for the first quarter last year.

Mr. Gallagher stated, “We are pleased to report another record level of sales and earnings for the first quarter of 2007. We continue to strengthen our financial position through consistent earnings growth, as well as working capital and asset management initiatives. The balance sheet at March 31, 2007 remains in excellent condition.”

Mr. Gallagher added, “We experienced our strongest sales growth at EIS, our Electrical Group, which was up 12%, and Motion Industries, our Industrial Group, increased sales by 8%. Both of these groups continue to perform well and they are positioned to have another good year in 2007. Our Automotive Group sales were up 3%. The Automotive operations have been showing a gradual improvement over the past three quarters and we anticipate that they will continue this improving trend over the remainder of the year. S.P. Richards, our Office Products Group, was down 3% for the quarter, partly due to a very strong first quarter last year, which was up 13%, and partly due to some demand softening in the office products industry over the past several months. However, this group has been one of our most steady performers over the years, and we are optimistic about their growth opportunities over the remainder of the year.”

Mr. Gallagher concluded, “Looking ahead, we are encouraged by the opportunity to have another good year in 2007. Stable market conditions and solid growth plans for each of our businesses provide us the basis for steady and consistent sales and earnings growth again this year.”

Page 2

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 4700030. A replay will also be available at 800-642-1687, conference ID 4700030, two hours after the completion of the conference call until 12:00 a.m. Eastern time on May 3, 2007.

Forward Looking Statements

Some statements in this release, as well as in other materials we file with the Securities and Exchange Commission (“SEC”) or otherwise release to the public and in materials that we make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example to our future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. 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 SEC.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements. You are advised, however, to review any further disclosures we make on related subjects in our Forms 10-Q and Form 8-K reports to the SEC.

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 March 31,
	2007		2006
	(Unaudited)
	(in thousands, except per share data)
Net sales	$	2,648,843	$	2,553,552
Cost of goods sold		1,816,899		1,750,075
		831,944		803,477
Selling, administrative & other expenses		635,834		618,982
Income before income taxes		196,110		184,495
Income taxes		74,557		70,570
Net income	$	121,553	$	113,925
Basic net income per common share	$	.71	$	.66
Diluted net income per common share	$	.71	$	.66
Weighted average common shares outstanding		170,466		172,773
Dilutive effect of stock options and non-vested restricted stock awards		1,035		912
Weighted average common shares outstanding – assuming dilution		171,501		173,685

GENUINE PARTS COMPANY and SUBSIDIARIES
SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS

	Three Months Ended March 31,
	2007			2006
	(Unaudited)
	(in thousands, except ratio analysis)
Net sales:
Automotive	$	1,261,507		$	1,227,789
Industrial		833,392			771,227
Office Products		451,842			465,955
Electrical/Electronic Materials		106,733			95,469
Other (1)		(4,631	)		(6,888	)
Total net sales	$	2,648,843		$	2,553,552
Operating profit:
Automotive	$	95,837		$	95,856
Industrial		64,592			57,515
Office Products		48,217			47,696
Electrical/Electronic Materials		7,220			4,853
Total operating profit		215,866			205,920
Interest expense, net		(6,671	)		(7,172	)
Other, net		(13,085	)		(14,253	)
Income before income taxes	$	196,110		$	184,495
Capital expenditures	$	23,683		$	27,521
Depreciation and amortization	$	20,702		$	17,623
Current ratio		3.1/1			3.1/1

(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

	March 31,		March 31,
	2007		2006
	(Unaudited)
	(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	250,082	$	150,171
Trade accounts receivable, net		1,296,800		1,297,836
Merchandise inventories, net		2,201,446		2,184,823
Prepaid expenses and other current assets		214,116		198,591
TOTAL CURRENT ASSETS		3,962,444		3,831,421
Goodwill and intangible assets, less accumulated amortization		62,136		62,611
Other assets		170,676		520,930
Net property, plant and equipment		430,807		400,444
TOTAL ASSETS	$	4,626,063	$	4,815,406
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable	$	971,400	$	954,276
Income taxes payable		86,004		83,517
Dividends payable		62,254		58,288
Other current liabilities		164,653		153,757
TOTAL CURRENT LIABILITIES		1,284,311		1,249,838
Long-term debt		500,000		500,000
Other long-term liabilities		171,754		119,224
Deferred income taxes		—		156,814
Minority interests in subsidiaries		61,615		57,571
Common stock		170,378		172,678
Retained earnings and other		2,438,005		2,559,281
TOTAL SHAREHOLDERS’ EQUITY		2,608,383		2,731,959
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,626,063	$	4,815,406

GENUINE PARTS COMPANY and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months
	Ended March 31,
	2007			2006
	(Unaudited)
	(in thousands)
OPERATING ACTIVITIES:
Net income	$	121,553		$	113,925
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,702			17,623
Other		2,139			2,017
Changes in operating assets and liabilities		62,556			(73,510	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		206,950			60,055
INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(23,683	)		(27,521	)
Other		672			1,733
NET CASH USED IN INVESTING ACTIVITIES		(23,011	)		(25,788	)
FINANCING ACTIVITIES:
Net payments on credit facilities		—			(881	)
Stock options exercised		6,305			3,209
Excess tax benefits from share-based compensation		2,300			1,349
Dividends paid		(57,545	)		(54,141	)
Purchase of stock		(20,890	)		(22,543	)
NET CASH USED IN FINANCING ACTIVITIES		(69,830	)		(73,007	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		114,109			(38,740	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		135,973			188,911
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	250,082		$	150,171