Genuine Parts Company reported its 2023 second quarter financial results on July 20, with the figures reflecting an industrial demand slowdown that has been forecasted for most of the year.

The results included a considerable sales growth deceleration at GPC’s Industrial Parts unit, which does business as Motion, where 2Q23 year-over-year sales growth of 5.9% on $2.26 billion was historically solid, but less than half of the 11.9% growth seen in 1Q23.

GPC said Motion’s 2Q23 sales reflected a 6.0% year-over-year increase in comparable sales and a 0.6% benefit from acquisitions, slightly offset by a 0.7% negative impact from foreign currency.

Meanwhile, Motion’s 2Q23 profit of $283 million jumped 25.7% year-over-year and achieved 12.5% margin that improved 190 basis points. It follows a 39.1% profit jump in 1Q, when margin was 11.6%.

Motion’s 2Q sales increased 5% year-over-year in North America, dwarfed by 24% growth in Australasia.

“Our Industrial sales growth was broad-based, with all product categories and major industries served growing from the prior year, allowing the Industrial team to post its twelfth consecutive quarter of margin expansion,” GPC President and Chief Operating Officer Will Stengel said in the company’s earnings release.

With $8.4 billion in 2022 revenues, Motion ranked No. 2 on MDM’s 2023 Top Industrial Distributors List. It also was No. 2 for MRO distributors, No. 1 in Power Transmission/Bearings, No. 3 in Fluid Power, No. 2 in Hose & Accessories, No. 25 in Electrical and on MDM’s unranked Safety List. 

GPC noted that Motion’s sales to larger, contracted corporate accounts outperformed in 2Q, and that the distributor continues to build on the synergies of its early 2022 landmark acquisition of Kaman Distribution Group. The KDG addition is expected to exceed GPC’s target of over $50 million in total synergies by the end of the year, the company said.

Looking forward, GPC’s full-year 2023 annual sales growth outlook for Motion held at 4 to 6%.

At GPC’s Automotive Parts Group, which does business as NAPA Auto Parts, 2Q23 sales of $3.65 billion were up 5.4% year-over-year, with segment profit of $329 million up 2% and margin of 9.9% down 30 basis points.

As a whole, GPC posted total 2Q23 sales of $5.92 billion that were up 5.6% year-over-year. Gross margin of 36.1% grew 110 bps, while EBITDA of $561 million grew 8%. Net profit of $344 million fell 7.5% year-over-year, while net profit margin of 10.4% topped the 9.8% of a year earlier and 9.1% in 1Q23.