DOW JONES NEWSWIRE 
 

Genuine Parts Co.'s (GPC) fourth-quarter net income slipped 30% as weak consumer spending and a decline in industrial production hurt sales.

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, or 55 cents a share, down from $126.1 million, or 75 cents a share.

Net sales dropped 4% to $2.52 billion amid a 6% drop in auto-parts sales and a 5% decline in the company's office-products division.

Analysts expected earnings of 56 cents a share and revenue of $2.55 billion, according to Thomson Reuters.

Gross margin increased to 29.8% from 29.6%, but overhead costs climbed 4.7%.

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.

Genuine Parts boosted its dividend last month 2.6%.

Shares were off 3.8% to $31.90 just after the opening bell Tuesday.

-By Katherine E. Wegert, Dow Jones Newswires; 201-938-5400; katherine.wegert@dowjones.com