Genuine Parts Co. (GPC) reported first-quarter sales of $5.3 billion, an 18.6% year-over-year increase.
A 12.3% year-over-year increase in comparable sales and an 8.1% benefit from acquisitions contributed to the strong quarter.
“We are pleased with the continued strength in our results to start the year, and we could not be prouder of the hard work by all our 52,000 teammates,” said Paul Donahue, chairman and CEO. “The first quarter was highlighted by new sales records for GPC and our Automotive and Industrial segments, margin expansion and our seventh consecutive quarter of double-digit earnings growth. The GPC team successfully navigated through ongoing supply chain challenges and inflationary pressures at levels we haven’t seen in 40 years.”
Sales in the Automotive Parts Group, which includes NAPA Auto Parts, were $3.3 billion, up 10.9% from the first quarter of 2021. Automotive sales represented 62% of total company revenues.
“”The continued strength in Automotive reflects solid growth across our operations, with 12% and 13% comparable-sales increases in the U.S. and Canada, respectively, and high-single digit comps in Europe and Australasia,” Donahue said. “Additionally, Industrial posted its fourth consecutive quarter of double-digit sales comps, driven by strengthening sales trends throughout the quarter.”
GPC updated its full-year guidance with a more bullish outlook for the year.
GPC now expects overall 2022 sales to grow between 10% and 12%, up from its previous full-year guidance of 9% to 11%. The company expects Automotive sales to grow between 5% and 7%, up from its previous outlook of 4% to %6.
“The increase in our sales and earnings outlook reflects the confidence in our plans for accelerated growth and profitability as we build on the positive momentum in our Automotive and Industrial businesses,” Donahue said. “While cognizant of the many uncertainties in the global economy, we believe GPC is well-positioned with the financial strength and flexibility to support our growth plans and provide for disciplined, value-creating capital allocation while enhancing shareholder value.”