Napa Auto Parts 2007 Annual Report Download - page 7

this group’s drive to generate positive and consistent sales growth
in the year ahead. Demand in the automotive aftermarket has been
impacted by macro-economic trends, including high gas prices and
its effect on miles driven and consumer spending. Although we
currently expect these economic conditions to remain much the
same in 2008, specific plans to grow sales are in place and, with
good execution of these initiatives, we anticipate a solid perfor-
mance from the Automotive segment in the coming year.
S.P. Richards, our Office Products Group, reported a 1% decrease
in sales for the year, reflecting weak demand in the overall office
products industry. Our primary challenge was depressed activity
with our national accounts customer base, which offset our steady
sales growth to independent dealers during the year. Historically,
the Office Products Group has been one of our most consistent
and steady performers among our four businesses, and we expect
to see gradual strengthening in the office products industry in
2008. is anticipated industry improvement, combined with the
proper execution of our growth initiatives, will help drive stronger
results for the Office Products Group in the year ahead.
Although we experienced mixed results among our business
segments this past year, we are pleased to operate in four essential
and growing industries. We believe that this diversification
provides us excellent balance when we look at the company as
a whole and as we plan for future growth.
Management
During 2007, there were a number of management changes and
promotions that we would like to share with you. Effective June
2007, Paul D. Donahue joined the GPC Headquarters staff and
at our August 2007 Board meeting he was elected Executive Vice
President of the Company. Previously, Paul was President and
Chief Operating Officer of S.P. Richards Company, our office
products business. As Executive Vice President, Paul is involved in
the activities at several of our automotive businesses in addition to
his work with our global sourcing initiative. Charles A. Chesnutt
also moved to GPC headquarters in 2007 and at the August Board
meeting he was elected Senior Vice President, Technology and
Process Improvement. Charlie was previously the Chief Financial
Officer at EIS, our Electrical/Electronic segment. In his new
role, he is engaged in corporate wide IT and telecommunication
initiatives as well as process improvement programs across GPC.
We are pleased to have Paul and Charlie in these key leadership
positions and we look forward to their future contributions.
In the Automotive Parts Group, Daniel F. Askey has been promoted
to Senior Vice President, Sales, effective August 2007. Dan joined
the Company in 1979 and has held a variety of important automo-
tive positions over the years, including his most recent role as the
U.S. APG Western Group Vice President. Effective January 2008,
Scott W. LeProhon joined the Automotive Parts Group as Senior
Vice President, Merchandising and Product Strategy. Scott started
with the Company in 1987 and has done an outstanding job in his
many automotive assignments, most recently at Balkamp, where
he was President. Replacing Scott as President of Balkamp is Tip
Tollison, a member of the GPC team since 1977 and, prior to this
promotion, Balkamp’s Executive Vice President, Administration.
Dan, Scott and Tip are very talented and well prepared for their
new duties.
In another key automotive move, Gary Silva was promoted to
President of the Heavy Vehicle Parts Group, effective December
2007. Since joining the Company in 1985, Gary has served in
numerous automotive positions and with his expertise in sales,
product sourcing and business development, we are pleased to
have him leading this key area of growth for GPC.
At EIS, Robert R. Gannon, Executive Vice President, retired from
the Company in May 2007. Bob joined EIS in 1985 and held
many important management roles over his 22-year career with
the Company. We thank Bob for his valued contributions and
wish him all the best in his retirement. To replace Bob, Alexander
Gonzalez was promoted to Senior Vice President, Electrical and
Assembly. Alex began his career at EIS in 1989 and has success-
fully held a variety of key sales and management positions with the
Company. Also, Matthew C. Tyser joined EIS in October 2007 to
replace Charlie Chesnutt as Chief Financial Officer. Matt came to
EIS with more than 20 years of financial management experience
and is a great addition to the EIS team.
Conclusion
As we enter 2008, we recognize that we face a more uncertain
economic environment. However, our growth plans have been
built with this in mind, as have our Operating Initiatives, Asset
Management and Working Capital programs. Continued progress
in each of these areas is a top priority for the GPC Management
Team and you can read more about the individual initiatives in
each of the four business segments in the pages that follow.
In closing, we want to express our appreciation to our employees,
customers, vendors and shareholders for your commitment to and
ongoing support of Genuine Parts Company.
Respectfully submitted,
omas C. Gallagher Jerry W. Nix
Chairman, President and Vice Chairman and
Chief Executive Officer Chief Financial Officer
February 29, 2008
1.16 1.18 1.20 1.25 1.35
1.00 1.04 1.10 1.14
5
Dividends per share
in dollars
1.46
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