Sales decline 3.7 percent at Genuine Parts Company
Genuine Parts Company ended the first quarter with sales of $4.6 billion, a 3.7 percent decrease compared to $4.7 billion for the same period in 2019.
Net income for the quarter was $136.5 million and diluted earnings per share were 94 cents, compared to $160.3 million and $1.09 per share in last year's first quarter.
Sales for the Industrial Parts Group, which includes Motion Industries, were $1.5 billion, a 7.7 percent decline from $1.6 billion last year. The group had a profit of $113.9 million, compared to $121 million in the same period last year.
The company estimates that COVID-19 was an approximate 3.0 percent headwind to sales and had a 0.7 percent impact on total segment operating margin, or $0.21 per diluted share in the first quarter.
"Despite the challenges of these unprecedented business conditions, our North American industrial operations as well as both our automotive and industrial businesses in Australasia operated well and reported improved profit margins. In addition, we improved our total gross margin rate in the quarter and implemented accelerated costs savings initiatives to more effectively leverage our cost structure as we move forward. We also took steps to modify our capital allocation priorities, review our debt structure and more effectively manage our working capital to preserve cash and ensure ample liquidity through the crisis," said Paul Donahue, chairman and chief executive officer.
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