Genuine Parts Co. (GPC) has announced sales and earnings for the second quarter and six months ended June 30, 2016.
Sales for the second quarter ended June 30, 2016 were $3.9 billion compared to $3.94 billion for the same period in 2015. Net income for the second quarter was $191.4 million compared to $195.4 million recorded for the same period in the previous year. Earnings per share on a diluted basis were $1.28, equal to the earnings per share for the second quarter last year.
Paul Donahue, president and CEO, commented, “Total sales in the second quarter were down 1 percent from the prior year, inclusive of a 2 percent contribution from acquisitions less a currency headwind of 1 percent. Sales for the Automotive Group were down 0.7 percent, consisting of a 1 percent core sales decline, a 1.5 percent currency headwind and an approximate 2 percent contribution from acquisitions. Sales at Motion Industries, our Industrial Group, were down 1.7 percent, including a 3 percent underlying sales decrease and an approximate 0.5 percent currency headwind, offset by a 2 percent benefit from acquisitions. Sales at EIS, our Electrical/Electronic Group, were down approximately 5 percent, including a 1 percent negative impact of copper pricing. Sales for S. P. Richards, our Office Products Group, were up 1 percent, consisting of a 5 percent contribution from acquisitions offset by a 4 percent underlying sales decrease.”
Donahue stated, “This quarter our automotive sales along with our other distribution businesses were all impacted by the challenging sales environment. We offset some of this impact with key sales and gross margin initiatives as well as tight expense controls. Importantly, we also further improved the strength of our balance sheet and cash flows with effective working capital management. We expect the combination of these efforts to support stronger growth for the company over the long-term.”
Sales for the six months ended June 30, 2016 were $7.62 billion compared to $7.68 billion for the same period in 2015. Net income for the six months was $349.4 million, down 2 percent from 2015, and earnings per share on a diluted basis were $2.33, equal to the same six-month period of the prior year.
2016 Outlook
For the full year 2016, the company is maintaining its guidance for 1 percent to 2 percent total sales growth and is updating diluted earnings per share to $4.70 to $4.75 from $4.70 to $4.80.
