Genuine Parts beats quarterly profit estimates as it adds more stores

Genuine Parts

18/02/2025 14:07

Feb 18 (Reuters) - Automotive replacement parts
distributor Genuine Parts  GPC.N  on Tuesday reported a
better-than-expected fourth quarter profit, as store
acquisitions and an extra selling day in the U.S. boosted sales.
    Genuine Parts bought over 500 stores in the U.S. in 2024,
helping it take advantage of a strong dollar, while an
additional selling day in the country over the year-ago quarter
bumped global automotive sales by about 0.9%. Strong performance
in its Australasia market also lifted sales.
    Adjusted profit per share for the quarter ended December 31
was $1.61, compared with analysts' average expectation of $1.55,
according to date compiled by LSEG.
    The company reported fourth quarter revenue of $5.77
billion, compared with expectations of $5.72 billion.
    In 2024, the company had cut costs, including through
reducing headcount, to offset a slower recovery in the European
automotive aftermarket business.
    The Atlanta, Georgia-based Genuine Parts said it intends to
expand the global restructuring efforts in 2025, and anticipates
around $150 million to $180 million of costs in the year. 
    "While the year presented challenges due to macroeconomic
conditions and softer end-market demand, we remained focused on
controlling what we could," Will Stengel, CEO, said in a
statement.
    The company also expects 2025 total sales to grow between 2%
and 4%, compared with estimates of 2.92% growth.

 (Reporting by Raechel Thankam Job; Editing by Sahal Muhammed)
 ((mailto:RaechelThankam.Job@thomsonreuters.com;))