10-Q - GENUINE PARTS CO (0000040987) (Filer)

Tue, Oct 22, 5:21 PM (71 days ago)

Genuine Parts Company (GPC) reported its Q3 2024 results, with net sales of $5,970 million, a 2.5% increase year-over-year, driven by acquisitions contributing 3.2% growth. However, net income fell 35.5% to $227 million, primarily due to increased fixed costs and restructuring expenses of $41 million. The gross margin improved to 36.8% from 36.2%, aided by acquired stores, while SG&A expenses rose to 28.8% of sales, reflecting inflationary pressures. Cash flow from operations was $1,096 million, with total liquidity at $2.6 billion. The company’s total debt decreased to $4.6 billion, and it maintained compliance with debt covenants. Future operations may be impacted by ongoing restructuring initiatives and economic uncertainties, including weak market conditions affecting industrial sales, which declined 2.4%. The company anticipates continued investment in growth initiatives and technology enhancements. GPC declared a quarterly dividend of $1.00 per share, marking 68 consecutive years of increased dividends.