Genuine Parts Co. reported a sharp increase in its industrial distribution segment after completing a major acquisition earlier this year.
The owner of Motion closed on its $1.3 billion purchase of Kaman Distribution Group in January, and the company said Thursday that Kaman’s operations contributed a 17.6% increase to its industrial sales in its latest fiscal quarter. Overall, the company’s industrial parts segment reported $2 billion sales in the first quarter of 2022, up 33.6% compared to the same quarter last year.
Company officials added that a 16.1% increase in comparable sales over that span marked the fourth consecutive quarter with a double-digit increase. Profits in the industrial division, meanwhile, jumped more than 50% and saw a profit margin of 9.3%. The industrial segment accounted for 38% of the company’s overall sales in the quarter.
The company’s automotive segment, which does business as NAPA Auto Parts, reported a 10.9% increase in sales to $3.3 billion.
“Our focus on key strategic priorities helped to deliver profitable sales growth, expand margins and generate strong cash flow in the quarter," GPC President Will Stengel said in a statement. "We are also pleased with the progress to integrate Kaman Distribution Group, which is trending ahead of plan."
GPC also slightly raised its full-year outlook for overall sales and in both its automotive and industrial segments. Sales growth in industrial parts is now projected to be between 21% and 23%, an increase from the previous forecast of 20% to 22%.
“While cognizant of the many uncertainties in the global economy, we believe GPC is well-positioned with the financial strength and flexibility to support our growth plans and provide for disciplined, value-creating capital allocation while enhancing shareholder value," said GPC Chairman and CEO Paul Donahue.