DETROIT (Reuters) - Genuine Parts Co (GPC.N: Quote, Profile, Research), a distributor of automotive and other parts, on Thursday posted a 1.6 percent rise in quarterly earnings that matched the average analyst forecast.

Genuine Parts, whose operating profit slipped in its auto and office products units, said the economic environment would be "uncertain and challenging" as 2008 continues but it remains focused on growth strategies in each business.

Net income rose to $123.5 million, or 75 cents per share, from $121.6 million, or 71 cents per share, a year earlier. Sales rose 3.4 percent from a year earlier to $2.74 billion.

The earnings-per-share and sales results matched analysts' average forecasts, according to Reuters Estimates.

Sales in its automotive parts business, its biggest unit, rose 3.5 percent to $1.31 billion while operating profit declined by 5.4 percent to $90.6 million. The percentage sales growth was strongest since the second quarter of 2006 and encouraging, Genuine Parts said.

Industrial unit sales rose 5.7 percent to $881.2 million and operating profit rose 6.8 percent to $69 million.

Office products sales fell 2.1 percent to $442.4 million due to continued softness in the office products industry while operating profit fell 8.9 percent to $43.9 million.

Sales and operating income rose in the much-smaller electrical products unit.

Genuine Parts has continued to raise its stock dividend and has bought back about 2.4 million shares so far in 2008. It has also continued reinvestments, including acquisitions in its automotive, industrial and office products businesses.