National Press Release

ATLANTA, Feb. 17 /PRNewswire-FirstCall/ -- Genuine Parts Company (NYSE: GPC) reports sales and earnings for the fourth quarter and year ended December 31, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081002/CLTH108LOGO )

Tom Gallagher, Chairman, President and Chief Executive Officer, announced today that sales in 2008 were $11.0 billion, up 2% compared to 2007. Net income for the year was $475.4 million, a decrease of 6% compared to $506.3 million in 2007. Earnings per share on a diluted basis were $2.92, down 2% compared to $2.98 in 2007.

Mr. Gallagher stated, "In line with our announcement on January 23, 2009, 2008 proved to be an interesting, as well as challenging, year for Genuine Parts Company. We are, however, pleased to report that 2008 represents another record level of revenues for us. Again for 2008, the Company's strongest sales improvements came from our two business segments serving the manufacturing sector of the economy. Motion Industries, our Industrial Group, reported a 5% increase for the year and EIS, our Electrical/Electronics Group, reported a 7% increase. The Automotive Group and S.P. Richards, our Office Products Group, continued to experience slower industry demand, with Automotive reporting just a slight sales increase in 2008 and our Office Group reporting a 2% decrease for the year."

Mr. Gallagher added, "We are disappointed that earnings did not improve over the prior year, with all of the shortfall coming in the final quarter. Fortunately, we were able to maintain a strong balance sheet and generate solid cash flows, which we returned to our shareholders in the form of dividends and share repurchases."

Fourth Quarter 2008

Sales decreased 4% to $2.5 billion in the fourth quarter ended December 31, 2008, compared to $2.6 billion for the same period in 2007. Diluted earnings per share in the fourth quarter were 55 cents, down 27% compared to 75 cents per share for the fourth quarter of 2007.

Mr. Gallagher commented, "After reporting steady and consistent results through the first three quarters of the year, we experienced a weakening in demand across all of our business segments during the final quarter, reflecting the effects of reduced consumer spending, declining industrial production and higher unemployment. In the fourth quarter of 2008, our Automotive sales were down 6%, our Industrial Group sales were unchanged, our Electrical/Electronics Group was down 4% and our Office Products Group was down 5%."

Mr. Gallagher concluded, "Due to all of the current economic uncertainties, our outlook for the near term is a bit more cautious than it might be in more normal times. However, we continue to be quite optimistic about the longer-term prospects for GPC and for each of our businesses. We believe the underlying fundamentals and demographics in all four business segments remain long term positive and each industry should return to historical growth levels as we work our way through the current economic downturn."

Conference Call

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 to the call on the Company's website, www.genpt.com, by clicking "Investor Services", or by dialing 877-422-4780, conference ID 23660. A replay will also be available on the Company's website or at 800-642-1687, conference ID 23660, two hours after the completion of the conference call until 12:00 a.m. EST on March 4, 2009.

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, the ability to maintain favorable supplier arrangements and relationships, changes in general economic conditions, the growth rate of the market for the Company's products and services, competitive product and pricing pressures, including internet related initiatives, the effectiveness of the Company's promotional, marketing and advertising programs, changes in financial markets, including particularly the capital and credit markets, 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 except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our Form 10-Q, 10-K, 8-K and other 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 Dec. 31,    Year Ended Dec. 31,
                          2008         2007        2008          2007
                             (Unaudited)

                               (in thousands, except per share data)

    Net sales           $2,520,190   $2,627,269  $11,015,263  $10,843,195
    Cost of goods sold   1,768,401    1,849,063    7,742,773    7,625,972
                           751,789      778,206    3,272,490    3,217,223
    Selling,
     administrative &
     other expenses        601,555      574,774    2,504,022    2,400,478

    Income before income
     taxes                 150,234      203,432      768,468      816,745
    Income taxes            62,450       77,347      293,051      310,406

    Net income             $87,784     $126,085     $475,417     $506,339

    Basic net income per
     common share            $ .55        $ .76       $ 2.93       $ 2.99

    Diluted net income per
     common share            $ .55        $ .75       $ 2.92       $ 2.98

    Weighted average
     common shares
     outstanding           159,452      166,955      162,351      169,129

    Dilutive effect of
     stock options and
     non-vested restricted
     stock awards              457          976          635        1,006

    Weighted average
     common shares
     outstanding -
     assuming dilution     159,909      167,931      162,986      170,135



                    GENUINE PARTS COMPANY and SUBSIDIARIES
                 SEGMENT INFORMATION AND FINANCIAL HIGHLIGHTS

                       Three Months Ended Dec. 31,    Year Ended Dec. 31,
                          2008         2007         2008         2007
                                (Unaudited)

                                           (in thousands)

    Net sales:
      Automotive        $1,194,018   $1,274,305   $5,321,536   $5,311,873
      Industrial           828,364      828,279    3,514,661    3,350,954
      Office Products      400,347      422,123    1,732,514    1,765,055
      Electrical/Electronic
       Materials           102,177      106,902      465,889      436,318
      Other (1)             (4,716)      (4,340)     (19,337)     (21,005)
        Total net
         sales          $2,520,190   $2,627,269  $11,015,263  $10,843,195

    Operating profit:
      Automotive           $67,468      $87,490     $385,356     $413,180
      Industrial            71,871       77,432      294,652      281,762
      Office Products       29,406       37,729      144,127      156,781
      Electrical/Electronic
       Materials             7,546        7,211       36,721       30,435
      Total operating
       profit              176,291      209,862      860,856      882,158
      Interest expense,
       net                  (7,970)      (4,506)     (29,847)     (21,056)
      Other, net           (18,087)      (1,924)     (62,541)     (44,357)
        Income before
         income
         taxes            $150,234     $203,432     $768,468     $816,745

    Capital expenditures   $44,935      $31,867     $105,026     $115,648

    Depreciation and
     amortization          $22,229      $23,688      $88,698      $87,702


    (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

                                                    Dec. 31,       Dec. 31,
                                                      2008           2007
                                                         (in thousands)
    ASSETS
    CURRENT ASSETS
    Cash and cash equivalents                        $67,777       $231,837
    Trade accounts receivable, net                 1,224,525      1,216,220
    Merchandise inventories, net                   2,316,880      2,335,716
    Prepaid expenses and other current assets        262,238        269,239

        TOTAL CURRENT ASSETS                       3,871,420      4,053,012

    Goodwill and other intangible assets, less
     accumulated amortization                        158,825         82,453
    Deferred tax asset                               218,503         35,778
    Other assets                                     114,337        176,837
    Net property, plant and equipment                423,265        425,989

    TOTAL ASSETS                                  $4,786,350     $4,774,069

    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES
    Trade accounts payable                        $1,009,423       $989,816
    Current portion of debt                                0        250,000
    Income taxes payable                              24,685         45,578
    Dividends payable                                 62,148         60,789
    Other current liabilities                        190,847        201,793

        TOTAL CURRENT LIABILITIES                  1,287,103      1,547,976

    Long-term debt                                   500,000        250,000
    Other long-term liabilities                      103,264        101,988
    Retirement benefits liabilities                  502,605         91,159
    Minority interests in subsidiaries                69,046         66,230

    Common stock                                     159,443        166,065
    Retained earnings and other                    2,164,889      2,550,651

      TOTAL SHAREHOLDERS' EQUITY                   2,324,332      2,716,716

    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $4,786,350     $4,774,069

    NOTE:  Certain prior period amounts have been reclassified to conform to
    the current year presentation.



                    GENUINE PARTS COMPANY and SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                        Year Ended Dec. 31,
                                                        2008           2007
                                                          (in thousands)

    OPERATING ACTIVITIES:
      Net income                                     $475,417       $506,339
      Adjustments to reconcile net income to net
       cash provided by operating activities:
      Depreciation and amortization                    88,698         87,702
      Other                                           (23,985)         4,521
      Changes in operating assets and liabilities      (9,821)        42,909

    NET CASH PROVIDED BY OPERATING ACTIVITIES         530,309        641,471

    INVESTING ACTIVITIES:
      Purchases of property, plant and equipment     (105,026)      (115,648)
      Acquisitions and other                         (109,308)        28,050

    NET CASH USED IN INVESTING ACTIVITIES            (214,334)       (87,598)

    FINANCING ACTIVITIES:
      Net payments on debt                                  0              0
      Stock options exercised                             821         10,530
      Excess tax (expense) benefits from share-based
       compensation                                      (586)         4,438
      Dividends paid                                 (251,808)      (243,244)
      Purchase of stock                              (273,000)      (241,220)
      Other                                            52,000              0

    NET CASH USED IN FINANCING ACTIVITIES            (472,573)      (469,496)

    EFFECT OF EXCHANGE RATE CHANGES ON CASH            (7,462)        11,487

    NET (DECREASE) INCREASE IN CASH AND CASH
     EQUIVALENTS                                     (164,060)        95,864

    CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR    231,837        135,973

    CASH AND CASH EQUIVALENTS AT END OF YEAR          $67,777       $231,837

SOURCE Genuine Parts Company