Genuine Parts Company (GPC) reported a 13% rise in profit to $99 million or 62 cents per share in the fourth quarter of 2009 from $88 million or 55 cents in the prior year quarter. With this, the company has beaten the Zacks Consensus Estimate of 51 cents per share. However, sales in the quarter fell 2% to $2.47 billion.

Genuine Parts’ Automotive Parts segment was the only segment to report an improvement in sales. The Industrial Parts and Electrical/Electronic Material segments were the most negatively affected during the quarter. Revenue in the Automotive Parts segment increased 6% to $1.26 billion, Industrial Parts segment dipped 11% to $737 million, Office Products segment slid 4% to $384 million and Electrical Group shrank 12% to $90 million.

Annual Results

In 2009, Genuine Parts has posted a 16% decline in profit to $399.6 million or $2.50 per share, from $475.4 million or $2.92 per share in 2008. The profit was a tad higher than the Zacks Consensus Estimate of $2.38 per share.

All the business segments were adversely affected by the economic slowdown during the year. Sales declined 2% to $5.23 billion in the Automotive Parts segment, 5% to $1.64 billion in the Office Products segment, 18% to $2.89 billion in the Industrial Parts segment and 26% to $346 million in the Electrical Group.

Financial Position

Genuine Parts has strengthened its financial position in 2009. The company had cash and cash equivalents of $337 million as of December 31, 2009, a significant increase from $68 million as of December 31, 2008. Long-term debt remained unchanged at $500 million as of that date. The company maintained a lower long-term debt to capitalization ratio of 19%.

In 2009, Genuine Parts’ net cash flow from operations increased to $845 million from $530 million in the prior-year period. Meanwhile, capital expenditures reduced to $69 million from $105 million a year ago.

Driven by the improved results, Genuine Parts’ share price elevated more than 7% to $40.91 in the afternoon.

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