Genuine Parts Co. (GPC) has announced first quarter sales and earnings for the quarter ended March 31, 2016.
Sales for the first quarter were $3.72 billion, compared to sales of $3.74 billion for the same period in 2015. Net income for the first quarter was $158 million compared to $161 million recorded for the same period in the previous year. Earnings per share on a diluted basis were $1.05, equal to the earnings per share for the first quarter last year. Currency negatively impacted total revenue growth by approximately 1.5 percent and earnings per share by an approximate 1 cent in the first quarter.
Tom Gallagher, chairman and CEO, commented, “We are pleased to report that our first quarter performance was in-line with our expectations. Our growth initiatives for the automotive business along with consistently strong industry fundamentals continue to drive our positive automotive performance. Our non-automotive businesses continue to operate in a difficult economic environment.”
Total sales in the first quarter were down 0.5 percent from the prior year, inclusive of the 1.5 percent currency headwind, which was partially offset by acquisitions. Sales for the Automotive Group were up 2 percent, consisting of an approximate 3.5 percent core sales increase, a 1 percent benefit from acquisitions and a reduction of 2.5 percent from currency translation. Sales at Motion Industries, GPC’s Industrial Group, were down 2.5 percent, including a 3 percent underlying sales decrease and a 1 percent currency headwind, offset by a 1.5 percent contribution from acquisitions. Sales at EIS, GPC’s Electrical/Electronic Group, and S. P. Richards, its Office Products Group, were each down approximately 3 percent.
Gallagher concluded, “Despite the fragile industrial economic conditions which continue to pressure our near-term growth outlook, our teams remain focused on key sales and cost initiatives necessary to drive long-term growth for the company. We will continue to support our sales and earnings growth with a strong balance sheet, solid cash flows and effective capital allocation intended to maximize shareholder value.”
