Genuine Parts Co., the parent of Motion — what GPC calls its “industrial parts group” — on Thursday reported third-quarter sales were $1.6 billion, up 14.5% from 2020 and representing 34% of total company revenues.
The improvement reflects a 13.4% increase in comparable sales, a 0.8% favorable impact from foreign currency and a 0.3% benefit from acquisitions. Segment profit of $165.8 million was up 31.9%, and the profit margin was 10.3% compared to 8.9% in 2020, up 140 basis points.
Atlanta-based General Parts Co. (NYSE: GPC) said Thursday that its overall third-quarter 2021 sales were $4.8 billion, a 10.3% increase over the same period a year ago.
The company attributed the improvement to a 7.6% increase in comparable sales, a 1.8% benefit from acquisitions and a 0.9% net favorable impact of foreign currency and other.
Net income from continuing operations was $228.6 million during 3Q 2021, or a diluted earnings per share of $1.59. This compares to net income from continuing operations of $232.9 million, or $1.61 per diluted share in the prior year period.
The company’s adjusted net income from continuing operations was $270.5 million, an increase of 14% as compared to $236.8 million a year ago. On a per share diluted basis, adjusted net income from continuing operations was $1.88, an increase of 15% compared to $1.63 per diluted share last year.
“We are pleased to report strong financial results in the third quarter, as the combination of our growth initiatives and the global market recovery drove positive sales trends, gross margin gains and improved operational efficiencies,” said Paul Donahue, Genuine Parts chairman and CEO. “Consistent execution of our strategic priorities also led to margin expansion and a second consecutive quarter of record earnings. The GPC team was largely able to manage through supply chain disruptions, allowing us to deliver quality customer service. In addition, we further improved our balance sheet and generated strong cash flow which allows for the ongoing deployment of capital for growth and productivity investments, bolt-on acquisitions, the dividend and share repurchases.”
Sales from continuing operations for the nine months ended Sept. 30 were $14.1 billion, a 14.5% increase from $12.3 billion for the same period in 2020. Net income from continuing operations for the nine months was $642.8 million, or $4.44 per diluted share.
The company’s adjusted net income from continuing operations was $740.8 million, or $5.12 per diluted share, an increase of 36% compared to $3.76 per diluted share last year.
The company ended the quarter with $2.4 billion in total liquidity, consisting of $1.5 billion availability on the revolving credit facility and $919.1 million in cash and cash equivalents.