Genuine Parts Co. said second-quarter profit slipped as the
automotive-replacement parts distributor's sales fell in its two
largest businesses.
Results, which missed analysts' expectations, "reflect the
moderation in our sales and earnings growth rates in the second
quarter, primarily due to the ongoing choppiness in the economy,"
said Chief Executive Tom Gallagher.
The Atlanta operator of NAPA Auto Parts stores has grown from
its independent garage roots through acquisitions of companies in
the automotive and industrial industries. Most recently, Genuine
Parts purchased an automotive business in Australia to increase its
presence there. Outside of the U.S., the company also does business
in Canada and Mexico.
Unfavorable currency rates shaved 2.7% off sales in the latest
quarter, General Parts said.
In all, the company reported a profit of $195.4 million, down
from $197.7 million a year earlier. On a per-share basis, earnings
were flat at $1.28 on a lower share count than last year's
quarter.
Revenue inched 0.8% higher to $3.94 billion, helped by
acquisitions. Underlying sales, which strip out acquisition and
currency effects, rose 2.2%.
Analysts polled by Thomson Reuters expected per-share profit of
$1.32 and revenue of $4 billion.
In the company's automotive business, its largest, sales dipped
0.3% to $2.1 billion. Industrial segment sales, meanwhile, dropped
1.8% to $1.19 billion. Sales at its smaller electrical unit rose
3.5% to $194.7 million while revenue from its office supply
business climbed 14% to 477.8 million, thanks largely to
acquisitions.
Shares in the company have fallen about 15% this year.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires