Genuine Parts Co. (GPC) has announced sales and earnings for the second quarter and six months ended June 30, 2017.
Sales for the second quarter were $4.1 billion, a new record and a 5 percent increase compared to $3.9 billion for the same period in 2016. Net income for the second quarter was $190 million compared to $191.4 million recorded for the same period in the previous year. Earnings per share on a diluted basis were $1.29, up 1 percent from $1.28 for the second quarter last year.
Paul Donahue, president and CEO, commented, “We are encouraged by the steady and consistent total sales increase thus far in 2017, which reflects the diversified aspects of our company combined with an ongoing strategy to drive both organic and acquisitive growth. This represents our second consecutive quarter of 5 percent total sales growth for the company and includes sales increases in each of our four distribution businesses, with our strongest performances in the industrial and electrical segments.”
Second quarter sales for the automotive group were up 4 percent, including an approximate 1.5 percent comparable sales increase. Sales at Motion Industries, GPC’s industrial group, were up 7 percent, including a 5 percent comparable sales increase, and sales at EIS, its electrical/electronic group, grew 11 percent, with comparable sales down 1 percent. Sales for S.P. Richards, the company’s office products group, were up 5 percent for the quarter, including a 4 percent decrease in comparable sales.
Sales for the six months ended June 30, 2017 were $8 billion, also a new record and a 5 percent increase compared to $7.6 billion for the same period in 2016. Net income for the six months was $350.1 million compared to $349.4 million in 2016, and earnings per share on a diluted basis were $2.36, up 1 percent compared to $2.33 in 2016.
Donahue concluded, “Our teams are committed to generating sustainable sales growth, while also streamlining our cost structure to improve profitability. We believe our focus in these areas, along with a strong balance sheet, solid cash flows and effective capital allocation, will drive long-term growth for the company and serve to maximize shareholder value.”
2017 Outlook
For the full year 2017, the company continues to expect total sales to be up 3 to 4 percent. The company expects diluted earnings per share to range from $4.70 to $4.75 compared to the prior outlook of $4.75 to $4.85.
