Motion Industries sales climb 19.6 percent
Second-quarter sales for Motion Industries, the Industrial Parts Group of Genuine Parts Company, were $1.6 billion, up 19.6 percent from $1.3 billion in 2020.
The improvement reflects a 16.4 percent increase in comparable sales, a 2.4 percent favorable impact from foreign currency and a 0.8 percent benefit from acquisitions. Segment profit of $150.4 million was up 38.1 percent and the profit margin was 9.5 percent, up 130 basis points from 2020.
For the first six months of the year, sales of $3.1 billion improved from $2.8 billion for the same period last year.
"We experienced strong sales trends across each of our industries served and our product categories other than safety supplies, which had extraordinary sales in 2020 due to the pandemic," said Paul Donahue, chairman and CEO of GPC, in a conference call with analysts. "Several industry sectors stood out as their sales increased by 30 percent or more over last year, including equipment and machinery, automotive, aggregate and cement, equipment rental and oil and gas. In addition, our newly added fulfillment and logistics industry sector experienced tremendous growth. In the past several years of expanding this segment, we have found our broad offering of products and services fits well with the needs of these customers."
Donahue added that Motion remains focused on several strategic initiatives, which include the build-out of its Industrial omni-channel capabilities with solid growth in digital sales via Motion.com. "Our new inside sales center, which was established in 2019, is generating incremental sales from new Motion customers and we see room for further growth," he added.
As a whole, Genuine Parts Company sales were $4.8 billion, a 25.1 percent increase compared to $3.8 billion in the same period of the prior year. The improvement is attributable to a 19.5 percent increase in comparable sales, a 4.1 percent net favorable impact of foreign currency and other and a 1.5 percent benefit from acquisitions.
Net income from continuing operations was $196.5 million, or a diluted earnings per share of $1.36. This compares to a net loss from continuing operations of $363.5 million, or $2.52 per diluted share in the prior year period.
INDUSTRIAL SUPPLY MAGAZINE
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