Our round-up of the week’s top news leads off with word that Genuine Parts Co. (GPC) has completed its acquisition of the North American assets of BC Bearing, which includes BC Bearing in Canada and US Bearings & Things in the states. BC Bearing, headquartered in Vancouver, B.C., is a family owned bearing and power transmission distributor operating 53 branches throughout western Canada and the northwestern U.S. GPC expects the acquired business to generate annual revenues of approximately $155 million (CDN).
Meanwhile in the retail sector, AutoZone reported a 4 percent increase in second quarter sales. Net income for the quarter increased $7.5 million, or 6.4 percent, over the same period last year to $123.3 million, while diluted earnings per share increased 21.2 percent to $2.46 per share from $2.03 per share in the year-ago quarter. The company’s inventory increased 3.3 percent over the same period last year, driven by new store openings. Inventory per store was $504,000 versus $509,000 last year. Net inventory, defined as merchandise inventories less accounts payable, decreased on a per store basis to $26,000 from $50,000 last year.
Also highly read this week was the announcement regarding the launch of the new “ACDelco Advantage” product line. According to the company, products marketed under the ACDelco Advantage banner will have a fit, form and function similar to OE specifications and will be available for most vehicle makes and applications at a competitive price. The first ACDelco Advantage product is a new line of brake rotors and drums, which the company says leverages the growing shift to the "good" and "unbranded" segments. The company will launch the line in two phases. Phase one consists of 104 part numbers covering the most popular GM applications, and phase two covers 100 non-GM application part numbers. All ACDelco Advantage drums and rotors qualify for the ACDelco 12-month, 12,000-mile warranty protection.
And back in the distribution segment, Automotive Distribution Network member Parts Plus of New Mexico (PPNM) this week announced its acquisition of B & B Brake and Suspension, located in Albuquerque, N.M. Parts Plus of New Mexico services nine company-owned stores and 20 independent auto stores daily. PPNM plans to keep B & B’s existing downtown location as a satellite warehouse, while also maintaining the company’s knowledgeable staff and previous owner, Bobby Jackson, to help transition his customer base and product categories.
The final item in our list of the top five news stories of the week comes from General Motors, which announced a safety recall of 1.3 million compact cars to replace a motor in the power steering system. Vehicles affected are the 2005-2010 Chevrolet Cobalt; 2007-2010 Pontiac G5; 2005-2006 Pontiac Pursuit sold in Canada; and the 2005-2006 Pontiac G4 sold in Mexico. GM told the National Highway Traffic Safety Administration (NHTSA) about the voluntary recall on Monday after concluding an investigation that began in 2009. NHTSA opened an investigation Jan. 27 into approximately 905,000 Cobalt models in the United States after receiving more than 1,100 complaints of loss of power steering assist, 14 crashes and one injury.
