Q1 Sales & Operating Profit Dip At Motion Industries, EIS Inc.

Despite two acquisitions announced in February, revenue at Motion Industries declined further year-over-year as Q1 organic sales were down 3 percent from 2015.

Atlanta-based Genuine Parts Company — the parent company of Motion Industries and EIS Inc. — reported its 2016 first quarter fiscal performance on Tuesday. Motion Industries and EIS were Nos. 10 and 23 on Industrial Distribution's 2015 Big 50 List, respectively.

At Motion Industries — GPC's industrial business — Q1 sales of $1.15 billion were down 2.5 percent year-over-year, while operating profit was down 6.8 percent. Sales were negatively impacted 1 percent by currency headwinds, offset 1.5 percent by acquisitions. Organic sales were down 3 percent. Sequentially, sales were down 4.5 percent from Q4.

At EIS — GPC's electrical/electronic materials business — Q1 sales of $175.8 million were down 3.3 percent year-over-year, while operating profit was down 4 percent. Sequentially, sales were down 0.8 percent from Q4.

"Despite the fragile industrial economic conditions which continue to pressure our near term growth outlook," said Tom Gallagher, GPC chairman and CEO. "Our teams remain focused on key sales and cost initiatives necessary to drive long term growth for the company. We will continue to support our sales and earnings growth with a strong balance sheet, solid cash flows and effective capital allocation intended to maximize shareholder value."

GPC's total sales for Q1 were $3.72 billion, down 0.5 percent year-over-year and up 1.1 percent from Q4. Total profit of $158.0 million was down 1.9 percent from a year ago, and down 2.0 percent from Q1.

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