Genuine Parts Q1 Profit Meets View, But Sales Top

(RTTNews) - Automotive aftermarket distributor Genuine Parts Co. (GPC) reported Tuesday a profit for the first quarter that grew nine percent from last year, reflecting double-digit sales growth. Earnings per share matched analysts' expectations and quarterly revenues topped their estimates.

Looking ahead, the company said it is well positioned to demonstrate continued progress in driving improved results.

"During the first quarter, we achieved our core objectives of growing sales and earnings, producing operating margin improvement, generating solid cash flows and maintaining a strong balance sheet," Chairman and CEO Tom Gallagher said in a statement.

The Atlanta, Georgia-based company reported net income of $157.5 million or $1.02 per share for the first quarter, higher than $144.39 million or $0.93 per share in the prior-year quarter.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $1.02 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 13 percent to $3.62 billion from $3.20 billion in the same quarter last year, and topped nine Wall Street analysts' consensus estimate of $3.61 billion by a whisker.

The company noted that the sales growth included a 10 percent contribution from acquisitions and 4 percent underlying sales growth, partially offset by a 1 percent headwind from currency.

The company's automotive group sales were up 23 percent to $1.90 billion, and sales for industrial group or motion industries, increased 4 percent to $1.14 billion from a year ago.

Sales for office products group or S. P. Richards, edged down to $418 million from last year, while electrical/electronic materials group sales grew 30 percent to $180 million from the prior-year quarter.

Operating expenses for the quarter grew to $840.66 million from $699.61 million in the year-ago quarter.

"Looking ahead, we are well positioned to demonstrate continued progress in driving improved results and remain optimistic about our prospects for growth in each of our four businesses," Gallagher added.

In Tuesday's regular trading session, GPC is currently trading at $88.21, up $0.26 or 0.29% on a volume of 100 shares.