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Motion Industries, Birmingham, AL, the industrial distribution business of Genuine Parts Company, Atlanta, GA, reported net sales for the second quarter ended Jun. 30, 2005, were $702.6 million, up 12% from $629.4 million in the same period last year. Operating profits were $50.4 million, up 32% from $38.2 million reported in the second quarter of 2004.
Overall, Genuine Parts Company reported sales for the second quarter ended Jun. 30, 2005 of $2.5 billion were up 8% compared to the second quarter of 2004. Net income was $111.0 million, an increase of 10%, compared to $101.1 million for the second quarter of 2004. For the six months ended Jun. 30, sales totaled $4.8 billion, up 7% compared to the same period in 2004. Net income for the six months was $217.6 million, an increase of 8% over $201.3 million recorded in the previous year.
Mr. Gallagher stated: "Our overall results reflect the positive direction established in each of our businesses over the past eighteen months and all four of our business segments continue to contribute to the Company's success.
"The strongest sales performance in the quarter came from Motion Industries, our Industrial Group," said Tom Gallagher, chairman, president and CEO. "They were up 12% and business conditions remain favorable for the industrial operations. S.P. Richards, our Office Products Group, reported another period of consistent results with sales up 8%. The Automotive Group produced a solid 6% increase and EIS, our Electrical Group, was down 2% in the quarter. The EIS results reflect the impact of the sale of certain Electronic operations in the first quarter and the ongoing EIS business was actually up 5% in the period.
"Our balance sheet remains in excellent condition and we continue to generate strong cash flows. We expect our working capital initiatives and earnings growth to further strengthen our financial position in the periods ahead.
"We continue to maintain a positive outlook for each of our businesses for 2005. The demographics for the Automotive Aftermarket appear positive for some time to come, the manufacturing indices for Industrial and Electrical/Electronic remain strong and the increasing employment figures bode well for the Office Products Group. Our strategy is to continue to consistently execute our growth initiatives, in each of our businesses, in order to capitalize on these favorable market conditions. At the same time, we will be maintaining our expense control and asset management initiatives to meet our Sales and Earnings targets for 2005."