The 2020 Mid-Year Economic Update_long

Motion Sales Dip 3.3% in 4Q

Genuine Parts Co., the parent of Motion, reported that the distributor’s 4Q sales of $1.4 billion were down 3.3% year-over-year and represented 34% of the company’s revenues in the period.
Motion Industries

Genuine Parts Co., the parent of Motion — what GPC calls its “industrial parts group” — reported Wednesday that the distributor’s fourth-quarter sales of $1.4 billion were down 3.3% year-over-year and represented 34% of total company revenues (up from 32% the prior quarter).

The decrease in sales was comprised of a 4.4% decrease in comparable sales, partially offset by a 0.6% contribution from acquisitions and a 0.5% net benefit of foreign currency.  Segment profit of $133.4 million increased 5.1%, with profit margin of 9.3%, up 70 basis points from 2019.

Genuine Parts (NYSE: GPC) reported companywide sales from continuing operations of $4.3 billion, a 0.7% decrease compared to the same period of the prior year. The company said the decrease in sales was primarily attributable to a 2.8% decline in comparable sales, partially offset by a 0.8% benefit from acquisitions and a 1.3% net benefit of foreign currency and other factors.

Net income from continuing operations was $171.6 million, or a diluted earnings per share of $1.18. This compares to net income from continuing operations of $79 million, or $0.54 per diluted share in the prior year period.

“Our fourth quarter results reflect the benefit of our ongoing strategic actions, despite the continued challenges of COVID-19,” said Paul Donahue, chairman and CEO of Genuine Parts.  “The GPC team was agile in adapting to dynamic conditions and executed on our initiatives to deliver customer value, operational efficiencies and strong financial results.  We are grateful to our 50,000 associates for their unwavering commitment to excellence while responding to unprecedented business and economic conditions.”

For the year, Genuine Parts reported sales of $16.5 billion, down 5.6% from 2019. The company reported a loss of $29.1 million, compared with a profit of $621.1 million in 2019.

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