I've broken out the basics on the latest full-year numbers here. The short story is that revenues increased 7.5%, while earnings ticked upward to $437 million, or $2.50 a share. That's an 11.1% increase over last year's tally, powered by steady, incremental margin gains across the board.
Revenue and earnings growth was also spread across the business segments fairly evenly, with a few notable adjustments where underperforming units were being trimmed. The Johnson Industries operations, for example, are incurring wind-down costs for downsizing.
There are certainly no fireworks here. That's not surprising given the company's competition, from Ford
Therein lies the problem with GPC's shares. While this year's cash flow drop has a reasonable explanation in additional pension pitch-ins, it's hard to find a reason to buy this stock. I have to assume some pretty generous cash-flow growth to justify today's price, and even then, I get no margin of safety. I like the business -- just drop me a line when it gets cheap.
For related Foolishness:
- A Genuine Performance?
- Genuine Parts Add up to Success
- See Genuine Parts' Q4 and FY 2005 by the numbers.