Genuine Parts Q3 Profit Matches Estimates

(RTTNews) - Genuine Parts Company (GPC) reported lower sales and earnings for the third quarter as the strength in its underlying Automotive distribution business, as well as positive sales growth in the Office and Electrical distribution businesses, was offset by significant foreign currency headwinds and ongoing challenging global economic conditions, particularly in Industrial distribution business.

Tom Gallagher, Chairman and CEO, said: "We enter the fourth quarter facing market conditions that have softened, most prominently in our Industrial and Electrical businesses. Based on these uncertain conditions, which are likely to persist through the balance of the year, we expect sales and earnings to be further challenged as we work our way through the final quarter of 2015."

Net income for the third quarter was $188.0 million compared to $190.5 million recorded for the same period in the previous year. Earnings per share on a diluted basis were $1.24, equal to the earnings per share for the third quarter last year. On average, 11 analysts polled by Thomson Reuters expected the company to report profit per share of $1.24 for the quarter. Analysts' estimates typically exclude special items.

Sales decreased 2% to $3.92 billion compared to sales of $3.99 billion for the same period in 2014. The sales decline included underlying sales growth of 1% and a 1% contribution from acquisitions, offset by a currency headwind of approximately 4%. Analysts expected revenue of $4.01 billion for the quarter.