Genuine Parts Co.'s fourth-quarter net income slipped 30 percent as weak consumer spending and a decline in industrial production hurt sales.
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Analysts were hopeful that retailers like Genuine Parts would be somewhat insulated from the recession as consumers opt out of buying new cars and instead attend to vehicle maintenance concerns.
But Genuine Parts, which operates the National Automotive Parts Associated brand retail stores, posted net income of $87.8 million down from $126.1 million.
Net sales dropped 4 percent to $2.52 billion amid a 6 percent drop in auto-parts sales and a 5 percent decline in the company's office-products division.
Gross margin increased to 29.8 percent from 29.6 percent, but overhead costs climbed 4.7 percent.
Chief Executive Thomas C. Gallagher, while noting the company's near-term outlook "is a bit more cautious than it might be in more normal times," expressed optimism for each of the company's four business lines longer term. The company didn't disclose its expectations.
