UPDATE 1OReilly profit flat cautious on 2008 outlook
(Adds details, background, quotes from CEO, changes dateline,
adds byline)
By Kevin Krolicki
DETROIT, Feb 19 (Reuters) - Auto parts retailer O’Reilly
Automotive Inc (ORLY.O: Quote, Profile, Research) on Tuesday posted flat earnings for the
fourth quarter and said a slower U.S. economy would weigh on
sales this year as it looks to close a deal to acquire rival
CSK Auto Corp (CAO.N: Quote, Profile, Research).
O’Reilly expects comparable-store 2008 sales to rise by 3
percent to 5 percent, a “conservative” forecast that reflects a
slower U.S. economy, Chief Executive Greg Henslee said.
That forecast growth would be up from the 2.1 percent sales
growth it registered in the fourth quarter when many consumers
began to defer buying parts for car maintenance in order to
save money for holiday shopping and other purchases, he said.
“My perception is that the economy is struggling,” Henslee
told Reuters. “Most of the customers in our demographic, we
feel, are struggling.”
O’Reilly posted a fourth-quarter net profit of $40.6
million, or 35 cents per share, compared with $40.4 million, or
35 cents per share, a year earlier.
Revenue rose 8.2 percent to $604 million, while costs of
goods sold rose to $334 million from $309 million.
O’Reilly and its financial advisers are completing a due
diligence review of rival retailer CSK Auto that is expected to
be completed in the next several weeks. Continued…
