Genuine Parts Company reported its 2022 third-quarter financial results Oct. 20 for the three months ended Sept. 30, showing its industrial parts subsidiary, Motion Industries, continued to see major year-over-year sales gains driven by both organic business and the landmark early 2022 acquisition of Kaman Distribution Group.
GPC reported Motion 3Q sales of $2.2 billion, outpacing the $2.1 billion in 2Q and up 35.3% year-over-year — a slight acceleration from the 34.5% growth seen in 2Q. Of that 35.3% gain, 19.6% came from comparable sales, while the KDG addition contributed a 16.6% addition.
Motion’s segment profit of $243 million soared 46.3% year-over-year with margin of 11.1% that was up 80 basis points.
GPC said Motion saw double-digit 3Q sales growth across virtually all product categories and major industries served. It was the sixth consecutive quarter of double-digit comparable sales growth year-over-year, and the ninth consecutive quarter of margin expansion.
Meanwhile, GPC’s automotive subsidiary, NAPA Auto Parts, saw 3Q sales of $3.5 billion that grew 8.9% year-over-year, driven by a 9.2% increase in comparable sales and 5.3% contribution from acquisitions, while foreign currency and other headwinds had a 5.6% unfavorable impact. Segment profit of $309 million increased 10.0% year-over-year, with profit margin of 8.9% that was up 10 bps.
All together, GPC’s 3Q sales of $5.7 billion increased 17.8% year-over-year, reflecting a 12.7% increase in comparable sales and a 9.1$ benefit from acquisitions, while headwinds had a -4.0% impact. Net profit of $312 million topped the $229 million of a year earlier.
Looking ahead, GPC is forecasting full-year 2022 sales growth of 15% to 16%, up from the 12% to 14% issued in its 2Q report on July 27. The company expects Industrial sales growth of 31% to 32%, up considerably from the 26% to 28% issued after 2Q, while Automotive sales growth is expected to increase 7% to 8%, up from the 6% to 8% issued after 2Q.