Despite a 2 percent increase in its core automotive business, profit fell slightly in the first quarter of 2016 for Atlanta-based Genuine Parts Company because of weakness in other parts of the company.
The company, whose brands include NAPA auto parts, said net income was $158 million in the quarter compared to $161 million during the same period last year. Sales fell 0.5 percent from $3.74 billion in the first quarter of 2015 to $3.72 billion in this quarter, which ended March 31.
While sales were up 2 percent in the company’s automotive group, sales for its industrial group Motion Industries fell 2.5 percent. Sales also fell 3 percent in both the electrical and office groups.
“Our growth initiatives for the automotive business along with consistently strong industry fundamentals continue to drive our positive automotive performance,” Tom Gallagher, Chairman and CEO, said in a statement.
“Our non-automotive businesses continue to operate in a difficult economic environment,” he said.
Efraim Levy, an equity analyst at S&P Global Market Intelligence, said in research notes that Genuine’s revenues were in line with the consensus despite unfavorable exchange rates.
“However, a strong showing in the auto segment, was dragged down by declines in the remaining businesses amid a sluggish economy,” he said.
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