Genuine Parts Company (GPC) reported its 2023 first-quarter financial results on April 20, showing that its industrial parts segment, Motion, is still benefiting from its acquisition of Kaman Distribution Group (KDG) over a year after the deal closed.
GPC reported Motion 1Q sales of $2.3 billion, up 11.9% year-over-year. Motion’s 1Q growth reflects a 12.5% increase in comparable sales and a 0.6% benefit from acquisitions, slightly offset by a 0.8% unfavorable impact of foreign currency, according to the report. Segment profit of $262 million increased 39.1% year-over-year, with profit margin of 11.6% up 230 basis points from 1Q 2022. Motion’s 1Q sales of $2.3 billion were up sequentially from its 4Q 2022 sales of $2.1 billion.
In 1Q, Motion’s sales increased by 12% in its North America region and were up 26% in its Australasia region. Motion achieved its 11th consecutive quarter of margin expansion and “continued to build on the synergies” from its KDG acquisition, according to GPC.
“In the Industrial segment, our broad-based strength in sales drove our eighth consecutive quarter of double-digit sales comps,” GPC President and Chief Operating Officer Will Stengel said in the report.
Overall, GPC posted 1Q sales of $5.8 billion, up 8.9% year-over-year. GPC’s automotive segment, NAPA Auto Parts, had 1Q sales of $3.5 billion, a 7% increase year-over-year.
“Our first quarter performance is a clear reflection of our balanced portfolio and One GPC approach to executing our strategic initiatives and taking care of our customers,” Stengel added.
Following a strong 1Q, Motion’s outlook for the full year 2023, which forecasts total sales growth between 4% and 6%, held steady with that provided after 4Q22.