Posted April 22, 2021

Q1 sales flat at Motion Industries

Sales of $1.5 billion for Motion Industries in the first quarter were relatively flat, increasing 0.1 percent from the same quarter last year.

The increase includes a 1.3 percent benefit of foreign currency and a 0.6 percent contribution from acquisitions, mostly offset by a 1.8 percent decrease in comparable sales.

Profit of $125.3 million increased 10.0 percent, with profit margin of 8.3 percent, up 80 basis points from 2020.

Sales in the industrial segment of Genuine Parts Company represented 34 percent of total company sales.

In his quarterly conference call with investors, Genuine Parts Co. chairman and CEO Paul Donahue said sales are improving at Motion Industries. "March was a breakout month, with the North American Motion team posting a 7 percent increase in average daily sales and achieving record sales volumes."

GPC's first-quarter sales of $4.5 billion grew by 9.1 percent compared to $4.1 billion in the same period of the prior year.

The increase is attributable to a 4.6 percent increase in comparable sales, a 3.7 percent net benefit of foreign currency and other, and a 0.8 percent benefit from acquisitions.

Net income from continuing operations was $217.7 million, or a diluted earnings per share of $1.50. This compares to $122.3 million, or 84 cents, in the prior year period, an increase of 79 percent.

"Our positive sales growth was driven by a number of factors, including the overall strengthening economy, stimulus and execution of key initiatives. The Automotive business posted our strongest growth, with positive sales comps in each region of our operations, and Industrial continued its recovery with the third consecutive quarter of improving sales trends," said Donahue.