Genuine Parts Company has announced that sales were up for the first quarter ended March 31, 2019, including a 2.3% increase for the Automotive Parts Group.
Sales for the first quarter ended March 31, 2019 were $4.7 billion, a 3.3% increase compared to $4.6 billion for the same period in 2018. Total sales for the first quarter included 3.3% comparable growth, approximately 2% from acquisitions, and an approximate 2% negative impact from foreign currency translation.
Net income for the first quarter was $160.3 million and earnings per share on a diluted basis were $1.09. Before the impact of realized currency losses and transaction and other costs primarily related to the sale of the Grupo Auto Todo business in Mexico, adjusted net income was $187.2 million, or $1.28 per diluted share.
First quarter sales for the Automotive Parts Group were up 2.3%, including a 3.1% comparable sales increase, a 2.9% benefit from acquisitions and an unfavorable foreign currency translation of 3.4%.
In addition, automotive sales were impacted by 0.3% due to the sale of Grupo Auto Todo. Sales for the Industrial Parts Group were up 5.7%, including a 4.2% comparable sales increase, 1.8% from acquisitions, and a slightly unfavorable foreign currency translation. Sales for the Business Products Group were up 1.0%, consisting primarily of comparable sales growth.
Paul Donahue, President and Chief Executive Officer, commented, “We were pleased to produce another quarter of positive sales comps across each of our business segments while also benefiting from the favorable impact of ongoing strategic acquisitions. Our sales performance was indicative of the continued improvement in our U.S. automotive business and the steady growth we continue to generate in our Australasian and Canadian operations. Our strength in these areas offset the pressure on our core automotive results in Europe related to mild winter weather and economic considerations.
“Our industrial business remains strong and we made further progress in stabilizing the Business Products Group. Overall, we performed in-line with our expectations for the first quarter, despite the headwinds of foreign currency translation and one less selling day, and remain confident in the additional growth opportunities we see for GPC.”
Donahue concluded, “We enter the second quarter of 2019 focused on the further strengthening of our global platform, driving strong and sustainable sales growth and improving our operating results. As always, we plan to support these objectives with a strong balance sheet, continued strong cash flows and effective capital allocation. We believe our focus in these areas will create significant value for our shareholders.”
The Company is reaffirming its full year 2019 sales and earnings guidance and continues to expect sales to increase 3% to 4%, or up an adjusted 4% to 5% before an expected headwind from currency translation of 1%. The company expects diluted earnings per share to range from $5.56 to $5.71 and is reiterating its outlook for adjusted diluted earnings per share, which excludes any first quarter and future transaction and other costs, of $5.75 to $5.90, or $5.81 to $5.96 adjusted for the impact of the 1% currency headwind.
Additionally, the company continues to expect a tax rate of approximately 25% in 2019.
Genuine Parts Company will hold a conference call April 18, 2019 at 11:00 a.m. Eastern time to discuss the results of the quarter and the future outlook.
Interested parties may listen to the call on the Company’s website, www.genpt.com, by clicking “Investors,” or by dialing 877-407-0789, conference ID 13689066. A replay will also be available on the Company’s website or at 844-512-2921, conference ID 13689066, two hours after the completion of the call until 12:00 a.m. Eastern time on May 2, 2019.