Genuine Parts Co., the Atlanta-based parent of Motion — what GPC calls its “industrial parts group” — on Thursday reported that the distributor’s first-quarter sales of $1.5 billion were up 0.1% year-over-year and represented 34% of total company revenues (the same as the prior quarter).
The increase includes a 1.3% benefit of foreign currency and a 0.6% contribution from acquisitions, mostly offset by a 1.8% decrease in comparable sales. Segment profit of $125.3 million increased 10%, with profit margin of 8.3%, up 80 basis points from 2020.
Genuine Parts (NYSE: GPC) reported companywide sales from continuing operations of $4.5 billion, a 9.1% increase compared to the same period of the prior year. The company said the increase was attributable to a 4.6% increase in comparable sales, a 3.7% net benefit of foreign currency and other and a 0.8% benefit from acquisitions.
Net income from continuing operations on both a GAAP and adjusted basis was $217.7 million, or a diluted earnings per share of $1.50. This compares to net income from continuing operations of $122.3 million, or $0.84 per diluted share in the prior year period, an increase of 79%, and compares to adjusted net income from continuing operations of $116.8 million last year, or adjusted diluted earnings per share of $0.80, an increase of 88%.
“Our positive sales growth was driven by a number of factors, including the overall strengthening economy, stimulus and execution of key initiatives,” said Paul Donahue, chairman and CEO of Genuine Parts. “The Automotive business posted our strongest growth, with positive sales comps in each region of our operations, and Industrial continued its recovery with the third consecutive quarter of improving sales trends. In addition, we executed very well, producing our 14th consecutive quarter of gross margin expansion and managing our expenses through ongoing cost actions and the carryover of expense reductions implemented last year. Our progress in these areas drove a substantial increase in operating profit and net earnings, and we expect to build on this positive momentum as we move forward through the year.”