Genuine Parts Co., the parent of Motion Industries — what GPC calls its “industrial parts group” — reported Thursday that the distributor’s third-quarter sales of $1.4 billion were down 18.6% year-over-year, or down 8.7% excluding the EIS divestiture, and represented 32% of total company revenues.
The decrease in sales and sales excluding divestitures includes an approximate 9.2% decrease in comparable sales, slightly offset by a 0.4% benefit from acquisitions and a favorable foreign currency impact. Segment profit of $126 million was down 8.7%, with profit margin up at 8.9%, up 100 basis points from 2019.
Genuine Parts (NYSE: GPC) reported companywide sales from continuing operations of $4.4 billion, a 3.4% decrease compared to $4.5 billion in the same period of the prior year. The decrease in sales is attributable to a 1.8% decline in comparable sales and a 4.2% impact from divestitures. These items were partially offset by a 1.3% benefit from acquisitions and a 1.3% net impact of foreign currency and other. Excluding divestitures, net sales from continuing operations were up 0.8% in the third quarter. which compares to a 10.1% sales decrease in the second quarter.
Net income from continuing operations was $232.9 million, or a diluted earnings per share of $1.61. This compares to net income from continuing operations of $212.3 million, or $1.45 per diluted share in the prior year period.
“We entered the third quarter focused on driving profitable growth and productivity initiatives for our streamlined Automotive and Industrial portfolio,” said Paul Donahue, chairman and CEO of GPC. “Our progress for the quarter reflects the resiliency in our businesses and the benefits of these initiatives. Our financial performance was highlighted by strengthening sales trends, continued gross margin expansion, significant cost savings, operating margin expansion in each of our businesses, a stronger balance sheet, enhanced liquidity and substantial cash flows. We were pleased to report a strong financial performance for the quarter.”