6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
'Our largest segment, Automotive Parts, experienced modest growth in 2001 with sales increasing 2% and we believe fundamentals for continued improvement are in place for 2002,' said Larry Prince, chairman of the board of directors. 'Our Office Products Group had sales growth of 3% in 2001 and we have confidence in their ability to maintain growth again this year. The Industrial Parts Group and the Electrical/Electronic Group reported sales decreases of 5% and 30%, respectively, resulting primarily from the economic slowdown in the industrial manufacturing and telecommunications sectors of the economy. Both companies are expected to improve in the course of the year.'
Sales decreased 3.5% to $1.95 billion in the fourth quarter ended Dec. 31, 2001, as compared to $2.02 billion for the same period in 2000. Genuine Parts recorded non-recurring charges in the fourth quarter of 2001 of $107.8 million pre-tax, or $64.4 million after tax. Charges include $24.6 million for expenses related to facilities consolidation and severance, $49.4 million for impairment of several technology investments, $17.4 million for inventory-related exit costs and $16.4 million for other charges.
'The company's financial condition is excellent and our balance sheet remains strong,' Prince said. 'For the year, capital expenditures amounted to $42 million, current assets were 3.4 times current liabilities and long-term debt to equity ratio was 26%. We were able to generate approximately $440 million in free cash flow. We continue to focus our efforts on improving our return on assets and were pleased with the progress made in accounts receivable and inventory.'