Genuine Parts Co.'s fourth quarter profit rises, though down for the year
Genuine Parts Co. saw its profits rise in the fourth quarter and sales sales improvements across its business lines, suggesting better economic expectations for the 2010.
The Atlanta-based company, whose business segments include automotive, office products and electrical, said profit in the final three months of the year rose to $99.1 million or, 62 cents per share, from $87.7 million, 55 cents per share in the last quarter of 2008.
For the full year, the company reported profit of $399.5 million, or $2.50 per share, compared with $475.4 million, or $2.92 per share. Sales for the year fell to $10 billion from $11 billion.
The down economy made 2009 an extremely difficult year for the company. Even so, Genuine Parts managed to increase its cash flow to record levels.
"We continue to have confidence in the long-term positive fundamentals for all four of our businesses and we feel that we are positioned to show improved sales and earnings as the economy turns," Tom Gallagher, Genuine Parts' chairman and chief executive said in a statement.
Earlier this week, the company said it raised its dividend to an annual rate of $1.64 per share, from $1.60 in 2009. It's the 54th consecutive year that the company has raised its dividend.
