Second-quarter profit fell for Atlanta-based Genuine Parts — owner of the NAPA Auto Parts chain— as its industrial arm underperformed on “choppiness in the economy.”
Net income for the quarter, which ended June 30, was $195.4 million compared to $197.7 million recorded for the same period last year year. Earnings per share for the quarter was $1.28, unchanged from the same time last year.
“Our results reflect the moderation in our sales and earnings growth rates in the second quarter, primarily due to the ongoing choppiness in the economy,” Tom Gallagher, the company’s chairman and chief executive officer, said in a statement. “This is especially the case for our Industrial business.”
Overall sales increased 1 percent to $3.94 billion compared to $3.91 billion during the second quarter of 2014.
But individual groups had a more mixed quarter. Sales for Motion Industries — the company’s industrial group — fell about 2 percent compared to the same time last year while Automotive Group sales were essentially flat. Electrical/Electronic Group sales increased 3.5 percent in the quarter, with about 6 percent growth comping from acquisitions.
The numbers fell short of Wall Street expectations, which looked for earnings around $1.32 a share.
A company spokesman said, “We are focused on driving growth and have plans in place to show overall improvement in the second half of the year, but Industrial will remain under pressure for the near term.”
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