NAPA Auto Parts Parent GPC Reports Record Q1 Sales

[Counterman]

Genuine Parts Co. (GPC) reported record first-quarter sales of $5.8 billion, up nearly 9% over first-quarter 2022.

Net income was $304 million, up from $246 million in first-quarter 2022.

“We are pleased with the continued strength and momentum in our business and excited to report results that exceeded our expectations for the quarter,” said Paul Donahue, chairman and CEO. “Our performance was a clear example of how our multi-year strategic transformation to a global automotive and industrial company is a competitive advantage that distinguishes GPC in the marketplace. We benefited from our business mix and the geographic diversity of our operations with continued strong performances in our international automotive businesses and in the industrial segment. We are extremely proud of the outstanding work by all our GPC teammates.”

Global sales for the Automotive Parts Group, which includes NAPA Auto Parts, were $3.5 billion, up 7% over first-quarter 2022. A 6.6% year-over-year increase in comparable sales and a 3.5% benefit from acquisitions contributed to the number.

Industrial sales were $2.3 billion, up nearly 12% from the same period in 2022, and reflecting a 12.1% increase in comparable sales.

“Global Automotive sales were driven by the strong performance of our businesses outside the U.S., which helped to partially offset a slow start to the year in our U.S. automotive business,” said Will Stengel, president and chief operating officer. “In the Industrial segment, however, our broad-based strength in sales drove our eighth consecutive quarter of double-digit sales comps. The Industrial team is also operating well, posting the 11th consecutive quarter of margin expansion. Our first-quarter performance is a clear reflection of our balanced portfolio and One GPC approach to executing our strategic initiatives and taking care of our customers.”

“We are pleased with the solid start to 2023 and continue to expect another strong year of profitable growth,” Donahue said. “Our updated outlook for the full year reflects the confidence in our strategic plans and ability to execute through continued economic uncertainty. We believe GPC is well- positioned with the financial strength and flexibility to support our growth plans and provide for disciplined capital allocation and enhanced shareholder value.”

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