Napa Auto Parts 2004 Annual Report Download - page 7

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Putting it all together, we are pleased to be in four very essential
and growing industries. This gives us excellent balance and diversity
among our businesses as we plan for the future. It also is important
to note that while we are significant in size, we typically have only a
small share of the major markets we serve. Share gain is a realistic
and ongoing part of our future plans.
Management
A number of promotions have been made to strengthen our
management team as we move forward. In November 2004, the
Board of Directors elected R. Bruce Clayton to the position of Senior
Vice President - Human Resources for Genuine Parts Company,
replacing Ed Van Stedum, who has retired after several years of
leadership in this key position. At our February 2005 Board
meeting, the Directors elected Philip C. Johnson to Vice President -
Compensation and Benefits, bringing experience and expertise to
this important job. In April 2004, Frank M. Howard was named Senior
Vice President and Treasurer and Carol B. Yancey was promoted
to Vice President - Finance and Corporate Secretary. These two
promotions will add strength to our financial team for the future.
In December 2004, Keith A. Bealmear, Group Vice President of the
Southeast Group of our U.S. Automotive Parts Group, announced
his retirement after 30 years of service with the Company. Keith
contributed greatly to the overall success of GPC over the years and
we appreciate his dedication and leadership. Michael L. Barbee, a
21-year member of the GPC team, has been promoted to Group Vice
President of the Southeast and previously served as the Southeast
Regional Vice President for Distribution. M. Todd McMurtrie has been
selected to replace Mike in his previous role. Todd has been with our
organization for 16 years and was most recently President and
General Manager of our NAPA Memphis operation.
As evidenced by the signatures of Larry Prince and Tom Gallagher
at the end of this letter, it is truly a joint effort. However, at this point
it is perhaps appropriate that I (Larry Prince) have a moment to
comment on our recent change in the Chairman and CEO positions.
After having the privilege of serving as CEO for 16 years, I turned the
reins over to Tom and on August 16, 2004, the Board of Directors
elected him Chief Executive Officer. Tom is only the fourth CEO in the
77-year history of our Company. At our Board meeting on February
21, 2005, the Board of Directors elected him to the additional
position of Chairman of the Board. Tom is known and held in high
esteem by all constituencies of our Company, including our employ-
ees, customers and shareholders. He has been a member of the
GPC team for 34 years, and 15 of those he served as President and
COO prior to his election to CEO last year. There is no person more
ideally suited to lead Genuine Parts Company in the coming years
and we have pride and confidence in this important development.
My own plans include retirement from day to day activities and
management at Genuine Parts Company on March 31, 2005. It will
be my privilege to continue to serve as a Director on the GPC Board
and Chairman of the Executive Committee. It has been an honor to
be part of this splendid organization for 46 years and my interest will
always be directed toward the success and well being of GPC.
Well, we have discussed a number of changes in the top manage-
ment ranks of GPC, including the election of Tom Gallagher to
Chairman and CEO. So often today we see companies facing a
serious dilemma when making changes of this type. We are fortunate
to have accomplished a smooth transition in all the changes we
discussed. Each manager promoted has been internally developed
within GPC, and we are pleased to have the depth in our manage-
ment team to make these changes in such a seamless way and
with confidence. We are indeed grateful for the management and
employees we have throughout Genuine Parts Company.
Looking Ahead
Last year, as we closed our report to you, we commented that
we needed to pick up the pace with our strategies and execution,
particularly in our large Automotive and Industrial markets. We
believe this was accomplished across all our business segments
and now we find ourselves in the position of needing to do it again
with the same spirit and intensity we had going for us in 2004. We
believe all the plans are in place to do this and look forward to 2005.
As we customarily do in closing these remarks, we offer our special
thanks and recognition for the excellent and loyal support of our
customers, employees and shareholders.
Respectfully submitted,
Larry L. Prince Thomas C. Gallagher
Chairman of the Chairman, President and
Executive Committee Chief Executive Officer
March 4, 2005
Summary of stock dividends
Date Amount One Share Became
March 1959 100% 2 shares
April 1962 200% 6 shares
December 1967 50% 9 shares
May 1970 50% 13.5 shares
May 1972 100% 27 shares
April 1979 50% 40.5 shares
April 1984 50% 60.75 shares
May 1987 50% 91.125 shares
April 1992 50% 136.69 shares
April 1997 50% 205.04 shares
DIVIDENDS PER SHARE*
in dollars
*Restated to reflect stock splits.
95 96 97 98 99 00 01 02 03 04
0.84 0.89
0.96 1.00 1.04
1.10 1.14 1.16 1.18
Our improved financial strength is the result of greater operating
efficiencies and productivity, combined with conservative financial
management.
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