Automotive and industrial parts distributor Genuine Parts Co. (GPC) on Monday reported a 10 percent increase in profit for the third quarter from last year, reflecting sales growth across all four of its business segments. Earnings per share for the quarter matched analysts' expectations, while revenues beat their estimates.
Thomas Gallagher, chairman and CEO of Genuine Parts said, "In the third quarter, we achieved sales and earnings growth, produced operating margin improvement, generated solid cash flows and maintained a strong balance sheet. These are important and ongoing core objectives for us and the Company is well positioned to show continued improvement in these areas in the periods ahead."
The Atlanta, Georgia-based company's net income for the third quarter was $190.52 million or $1.24 per share, up from $173.75 million or $1.12 per share in the prior-year quarter.
The company recorded a pretax expense adjustment of $3 million or $0.01 per share in the year-ago period, in connection with its April 2013 acquisition of GPC Asia Pacific and the re-measurement of its initial investment.
On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $1.24 per share for the latest quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 8 percent to $3.99 billion from $3.69 billion in the same quarter last year, and beat analysts' consensus revenue estimate of $3.93 billion.
The company noted that the sales growth included a 3.3 percent contribution from acquisitions and about 5.4 percent underlying sales growth, partially offset by a 0.5 percent headwind from currency.
The company's automotive group sales for the quarter rose 4 percent to $2.10 billion, and sales for industrial group or motion industries, increased 10 percent from the year-ago period to $1.22 billion.
Sales for office products group or S. P. Richards, grew 15 percent to $496.57 million, and electrical/electronic materials group sales grew 35 percent to $193.32 million.
Operating expenses for the quarter grew 7 percent to $885.14 million from $829.18 million in the year-ago quarter.
GPC is trading at $87.87, down $0.68 or 0.77 percent on a volume of 29,641 shares.
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