Posted February 17, 2022

Motion Industries sales climb 12.8 percent

Motion Industries, the Industrial Parts Group of Genuine Parts Company, reported fourth-quarter sales of $1.6 billion, up 12.8 percent from $1.4 billion in 2020.

The improvement reflects a 12.5 percent increase in comparable sales and a 0.3 percent favorable impact from foreign currency. Segment profit of $153.8 million was up 15.3 percent and the profit margin was 9.5 percent compared to 9.3 percent in 2020, up 20 basis points.

"The double digit sales and earnings growth for the Automotive and Industrial businesses is a reflection of strong global demand and the diligent execution of our initiatives to accelerate growth and improve profitability," said Paul Donahue, chairman and chief executive officer of Genuine Parts Company. "The strength in Automotive was broad-based across our operations, with 13 percent sales comps in the U.S. and high-single digit sales comps in Canada, Europe and Australasia. Likewise, we had strong growth in both our North American and Australasian Industrial businesses, which drove the third consecutive quarter of double digit comps for this segment."

For the full year, Motion's sales of $6.3 billion grew 11.5 percent from $5.7 billion in 2020. Segment profit of $595 million was up 23.5 percent for the year from $481.9 million.

Total company sales in 2021 were $18.9 billion, a 14.1 percent increase from $16.5 billion for the same period in 2020. Net income from continuing operations for the 12 months was $898.8 million, or $6.23 per diluted share.

"Our Industrial team delivered positive sales growth across virtually all major product categories and industries we serve, including double-digit increases in the majority of our industry groups," Donahue said. "These include sectors such as equipment and machinery, iron and steel, automotive and aggregate and cement, among others."

He added that Motion's omnichannel build-out of e-commerce is driving sales with new customers. "We are encouraged by the incremental sales for our inside sales center and on We have expanded our industrial services and value-add solutions capabilities in areas such as equipment repair, conveyance and automation."

On the heel's of Motion's recent acquisition of Kaman Distribution Group, Donahue said the company will remain on the lookout for additional buying opportunities.

"We continue to look for strategic M&A opportunities to further boost our products and services offerings and expand our footprint. The added scale, presence and capabilities through the KDG acquisition is a great example, checking several boxes with its core power transmission and bearings business, and automation and fluid power industrial services and solutions," he said.