Genuine Parts Co. (GPC) announced today sales and earnings for the third quarter and nine months ended Sept. 30, 2016.
Sales for the third quarter were $3.94 billion compared to $3.92 billion for the same period in 2015. Net income for the third quarter was $185.3 million compared to $188 million recorded for the same period in the previous year. Earnings per share on a diluted basis were $1.24, equal to the earnings per share for the third quarter last year.
Paul Donahue, president and CEO, commented, “Total sales in the third quarter were up 0.5 percent from the prior year, inclusive of a 3.5 percent contribution from acquisitions. Currency exchange was neutral to our overall results, with the slightly favorable Canadian and Australian currencies offsetting the ongoing weakness in the Mexican peso. Sales for the Automotive Group were up 1.5 percent, consisting of a 2.5 percent contribution from acquisitions and a currency tailwind of 0.5 percent, offset by a 1.5 percent core sales decrease. Sales at Motion Industries, our industrial group, were down 0.7 percent, including a 2.5 percent underlying sales decrease and an approximate 2 percent benefit from acquisitions. Sales at EIS, our electrical/electronic group, were down approximately 9 percent, and sales for S. P. Richards, our office products group, were up 5 percent, consisting of an 11 percent contribution from acquisitions offset by a 6 percent underlying sales decrease.”
Donahue added, “Our third quarter results fell short of our expectations. We continue to operate in a tough sales environment, but our teams are working hard to overcome these challenges and generate growth. We recognize there is room for improvement and are working toward that in all aspects of our business. Our goal is to show improved results in the quarters ahead and better position the company for sustainable growth well into the future. We have a strong balance sheet and excellent cash flows to support our efforts.”
Sales for the nine months ended Sept. 30, 2016, were $11.56 billion compared to $11.6 billion for the same period in 2015. Net income for the nine months was $534.7 million, down 2 percent from 2015, and earnings per share on a diluted basis were $3.56, equal to the same nine-month period of the prior year.
2016 Outlook
For the full year 2016, the company is updating its sales guidance to flat to up 1 percent from up 1 percent to 2 percent. Diluted earnings per share is expected to be $4.55 to $4.60 as compared to prior guidance of $4.70 to $4.75 per share.
