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GPC Reports 10% Jump In Q3 Sales

Genuine Parts Co. (GPC), parent company of NAPA Auto Parts, reported third-quarter sales of $4.8 billion, a 10.3% year-over-year increase.

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Comparable sales were up 7.6%, according to the company.

Third-quarter sales for the Automotive Group were $3.2 billion, up 8.2% from 2020 and representing 66% of total company revenues.

Sales for the Industrial Parts Group were $1.6 billion, up 14.5% from 2020 and representing 34% of total company revenues.

“The positive momentum in our automotive and industrial operations is encouraging,” GPC Chairman and CEO Paul Donahue said in a news release. “As expected, our Automotive sales comparisons normalized to the mid- to high-single-digit range, with our U.S. Automotive business generating the strongest growth among our regional operations. Industrial posted very strong sales growth, generating mid-teen sales comps for the second consecutive quarter, as the industrial economy continues its steady rebound. We also produced our 16th consecutive quarter of gross margin expansion and took additional steps towards a more productive operating structure.”

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Sales from continuing operations for the nine months ended Sept. 30 were $14.1 billion, a 14.5% increase from $12.3 billion for the same period in 2020. Net income from continuing operations for the nine months was $642.8 million, or $4.44 per diluted share.

“As we look ahead, the company is well-positioned with the financial strength and flexibility to pursue strategic growth opportunities via investments in organic and acquisitive growth, while also returning capital to shareholders through the dividend and share repurchases,” Donahue said. “We are optimistic for the continued recovery in our Automotive and Industrial segments and improving fundamentals, and we are confident in our strategic plans to deliver long-term growth and margin expansion.”

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GPC raised its full-year financial guidance. The company said it now expects full-year sales growth in the range of 12% to 13%, compared to its previous outlook of 10% to 12%. For the Automotive Group, GPC now expects full-year sales growth in the range of 14% to 15%, compared to its previous guidance of 11% to 13%.

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