Genuine Parts Co GPC
Q2 2013 Earnings Call Transcript

Transcript Call Date 07/18/2013

Operator: Good morning. My name is Jasmine, and I will be your conference operator today. At this time, I would like to welcome everyone to the Genuine Parts Company Second Quarter 2013 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

I will now turn the conference over to Sid Jones, Vice President of Investor Relations. You may begin.

Sidney G. Jones - Vice President, Investor Relations: Thank you. Good morning, and thank you for joining us today for the Genuine Parts second quarter conference call to discuss our earnings results and outlook for the full year.

Before we begin this morning, please be advised that this call may involve forward-looking statements regarding the Company and its businesses. The Company's actual results could differ materially from any forward-looking statements due to several important factors described in the Company's latest SEC filings. The Company assumes no obligation to update any forward-looking statements made during this call.

We'll begin this morning with comments from Tom Gallagher, our Chairman and CEO. Tom?

Thomas C. Gallagher - Chairman and CEO: Thank you, Sid, and I would like to add my welcome to each of you on the call today to say that we appreciate you taking the time to be with us this morning. Paul Donahue, our President, along with Carol Yancey, our Executive Vice President and Chief financial Officer and I will each handle the portion of today's call and once we've concluded our individual remarks we will look forward to addressing any specific questions that you may have.

Earlier this morning, we released our second quarter 2013 results and hopefully you've had an opportunity to review them, but for those who may not have seen the numbers as yet, a quick recap shows that sales for the quarter were $3.676 billion, which was up 10% over the prior year. Net income was $216.4 million which was up 28% and earnings per share were $1.39 compared to $1.08 last year and the EPS increase was up 29%.

Now I do want to point out that these results include the contributions from our Australia and New Zealand acquisition that was completed on April 1. You will recall that as of April 1, we purchased the remaining 70% of the shares that we did not own and both Carol and Paul will give you a bit more detail on how this impacted the numbers during their comments. But I will just say that we're really pleased to have this team as part of the GPC family and there will be strong contributors to our results in the quarters ahead.

A review of the results by business segment shows quite a contrast between our Automotive and non-Automotive operations. Automotive revenues were up 22% in the quarter, including the contributions from the Australia, New Zealand acquisition and they were up 6% without this contribution and if we back out the one month of incremental volume we had with Quaker City our ongoing operations were up 4% and this shows good sequential improvement from Q1 to Q2.

The non-Automotive operations were down just over 1% in the quarter, with all three of the business segments experiencing modest decreases. The Industrial segment, which is our largest non-Automotive business was down six-tenth of 1% in the second quarter. This is a slight improvement from the 2% decrease reported in the first quarter, but down all the same.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.