Genuine Parts Lowers FY17 Earnings Outlook; Announces Acquisitions

(RTTNews) - While reporting its third-quarter financial results today, Genuine Parts Co. (GPC) lowered its fiscal 2017 earnings outlook, but raised its forecast for full-year sales.

For the full year 2017, Genuine Parts raised its sales outlook to a range of 4 percent to 4.5 percent from the prior range of 3 percent to 4 percent.

The company also updated its outlook for full-year earnings per share to a range of $4.47 to $4.52 and adjusted earnings per share of $4.55 to $4.60. This compares to the prior outlook for earnings of $4.70 to $4.75 per share.

On average, analysts polled by Thomson Reuters expect the company to earn $4.73 per share on revenues of $15.99 billion. Analysts' estimates typically exclude special items.

Separately, Genuine Parts also announced acquisitions for both its Industrial Group, Motion Industries, and its U.S. Automotive Parts Group.

Motion Industries has entered into a definitive agreement to acquire Cedar Rapids Iowa-based Apache Hose & Belting Company, Inc., with an effective close date of November 1, 2017.

Apache has over 50 years of experience in the industrial hose and belting business, specializing in value-added fabrication of belts, hoses and cut and molded products.

The company expects Apache to generate estimated annual revenues of $100 million.

In addition, Genuine Parts has entered into a definitive agreement to acquire Rochester, New York-based Monroe Motor Products, with an effective close date of November 1, 2017. Monroe is a regional automotive parts distributor with 17 stores and a large hub location.

The company noted that addition of Monroe will consolidate into its U.S. Automotive operations and is expected to generate approximate annual revenues of $25 million.