Genuine Parts cuts annual profit view on as tariff uncertainty

Genuine Parts

22/07/2025 13:15

Corrects paragraph 7 to say adjusted net income was above analysts' estimates, not below

July 22 (Reuters) - Genuine Parts Company GPC.N cut its annual profit forecast on Tuesday due to tariff-related uncertainty, sending the shares of the auto parts distributor down nearly 1% before the bell.

U.S. President Donald Trump's tariffs combined with inflationary headwinds are complicating the automotive industry as companies try to localize their supply chains.

"We remain focused on what we can control as we proactively manage through an evolving external environment," CEO Will Stengel said.

The Atlanta-based company cuts 2025 adjusted profit forecast to between $7.50 and $8.00 from $7.75 and $8.25. It also slashed its annual revenue growth to 1%-3% from its prior expectation of 2%-4%.

The company's cost-saving measures has helped it offset rising operational expenses and challenges related to tighter inventory levels.

It reported second-quarter revenue of $6.16 billion, above expectations of $6.12 billion, according to data compiled by LSEG.

Genuine Parts reported a second-quarter adjusted net income of $255 million, or $2.10 per share, above analysts' estimate of $2.07 per share.

 (Reporting by Apratim Sarkar in Bengaluru; Editing by Leroy Leo)

 ((Apratim.Sarkar@thomsonreuters.com;))