ATLANTA, Feb. 20, 2018 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today sales and earnings for the fourth quarter and twelve months ended December 31, 2017.

Sales for the fourth quarter ended December 31, 2017 were $4.2 billion, an 11.3% increase compared to $3.8 billion for the same period in 2016. Net income for the fourth quarter was $108.2 million and earnings per share on a diluted basis were $0.73. Alliance Automotive Group (AAG), the Company's European acquisition which closed on November 2, 2017, contributed 6.8% to sales and $0.07 in earnings per diluted share during the fourth quarter.

Before the impact of AAG's operations as discussed above, as well as excluding fourth quarter transaction-related costs and the expense for transition tax and the revaluation of deferred taxes resulting from the U.S. Tax Cuts and Jobs Act, adjusted net income was $165.5 million, or $1.12 per diluted share. Including the $0.07 contribution from AAG's operations, adjusted earnings per diluted share were $1.19 for the fourth quarter of 2017.

Fourth quarter sales for the Automotive Group were up 16.7% including an approximate 1% comparable sales increase and a 4% total sales increase before the additional 13% sales contribution from AAG. Sales at Motion Industries, the Industrial Group, were up 7.4%, including a 5% comparable sales increase, and sales at EIS, the Electrical/Electronic Group, grew 8.9%, with comparable sales down 2%. Sales for S.P. Richards, the Business Products Group, were down 2.2% for the quarter in both total and comparable sales.

Paul Donahue, President and Chief Executive Officer, commented, "We were pleased to complete the fourth quarter with a 4.5% sales increase before the added benefit of the AAG acquisition. Additionally, the two month performance at AAG was in-line with our initial plan, and we remain excited for the growth prospects we see for this business across Europe. Overall, total sales for the fourth quarter included 2% organic growth, 8.5% from acquisitions and an approximate 1% foreign exchange benefit."

Mr. Donahue added, "Importantly, our plans and initiatives to accelerate actions to improve our operating performance, which we emphasized following our third quarter results, had a positive impact on our fourth quarter. While we continue to focus on these efforts to drive further improvement, we are encouraged by our early progress."

Sales for the twelve months ended December 31, 2017 were $16.3 billion, a 6.3% increase compared to $15.3 billion for the same period in 2016. Net income for the twelve months was $617 million and earnings per share on a diluted basis were $4.18. AAG contributed 1.7% to sales and $0.07 in earnings per diluted share for the year.

Before the impact of AAG as discussed above, as well as transaction-related costs recorded in the third and fourth quarters of 2017 and the tax expense resulting from the Tax Cuts and Jobs Act recorded in the fourth quarter of 2017, adjusted net income was $686 million and adjusted earnings per diluted share were $4.64. Including the $0.07 contribution from AAG's operations, adjusted earnings per diluted share were $4.71 for the year.

Mr. Donahue concluded, "Reflecting on 2017, GPC's 90th year, we surpassed $16 billion in revenues, a new record for us. In addition, we better positioned the Company for sustained long-term growth, with significant investments in our existing businesses as well as new ones, both in North America and abroad. Our balance sheet is in excellent condition, our cash flows are strong and our plans are in place for the year ahead."

2018 Outlook

The Company is establishing its full year 2018 sales guidance at up 12% to 13% and diluted earnings per share is expected to be $5.60 to $5.75, including the benefit of a full year of operations with AAG and approximately $80 to $90 million in lower income taxes related to the Tax Cuts and Jobs Act. The Company currently expects a tax rate of approximately 26.0 to 27.0% in 2018.

Non-GAAP Information

This release contains certain financial information not derived in accordance with United States generally accepted accounting principles ("GAAP"). These items include adjusted net income and adjusted diluted earnings per share. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted net income and diluted earnings per share provides meaningful supplemental information to both management and investors that is indicative of the Company's core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below.

Conference Call

Genuine Parts Company will hold a conference call today at 11:00 a.m. EST to discuss the results of the quarter and the future outlook. Interested parties may listen to the call on the Company's website, www.genpt.com, by clicking "Investors", or by dialing 800-289-0438, conference ID 3643063. A replay will also be available on the Company's website or at 844-512-2921, conference ID 3643063, two hours after the completion of the call until 12:00 a.m. Eastern time on March 6, 2018.

Forward Looking Statements

Some statements in this report, as well as in other materials we file with the Securities and Exchange Commission (SEC) or otherwise release to the public and in materials that we make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to the acquisition of Alliance Automotive Group (AAG) and the anticipated synergies and benefits of the transaction, as well as future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, the Company's ability to successfully integrate AAG into the Company and to realize the anticipated synergies and benefits, changes in the European aftermarket, the Company's ability to successfully implement its business initiatives in each of its four business segments; slowing demand for the Company's products; changes in legislation or government regulations or policies; changes in general economic conditions, including unemployment, inflation or deflation; changes in tax policies; volatile exchange rates; high energy costs; uncertain credit markets and other macro-economic conditions; competitive product, service and pricing pressures; the ability to maintain favorable vendor arrangements and relationships; disruptions in our vendors' operations; the Company's ability to successfully integrate its acquired businesses; the uncertainties and costs of litigation; disruptions caused by a failure or breach of the Company's information systems, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2016 and from time to time in the Company's subsequent filings with the SEC.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports to the SEC.

About Genuine Parts Company

Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the U.K., Germany and Poland. The Company also distributes industrial replacement parts and electrical and electronic materials in the U.S., Canada and Mexico through its Motion Industries and EIS, Inc. subsidiaries. S.P. Richards Company, the Business Products Group, distributes a variety of business products in the U.S. and Canada.

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SOURCE Genuine Parts Company