Genuine Parts Earnings Tumble 22%

Genuine Parts(GPC Quote), best known as the franchiser of the NAPA chain of auto-parts stores, said weakness at its lesser-known businesses doomed its second quarter.

The Atlanta company also distributes replacement parts for non-auto sectors, such as bearings for industrial manufacturing machines and magnets for electrical equipment.

Overall, the company posted a top line of $2.5 billion, down 12% from a year ago. Earnings, meanwhile, dropped 22% to $103.6 million, or 65 cents a share. That's three cents better than analysts' expectations.

But sales in Genuine's industrial unit fell 22% in the quarter, while its electrical group suffered a 34% drop. Those compare with a 5% decline in auto-parts sales.

Genuine's CEO, Thomas Gallagher, said in a statement, "We are not satisfied with our results for the second quarter and first half of 2009, but feel that they reflect the realities of a difficult economy."

Genuine shares were trading midday Thursday at $33.95, down 45 cents, or about 1%, on heavier-than-average volume.