MRO distribution giant Motion said its sales saw a modest 0.6% increase in its latest fiscal quarter, while its profit jumped by more than 16%.
The company — no. 2 on ID’s recently released Big 50 — reported nearly $2.2 billion in net sales in the third quarter of the year, up from $2.18 billion in the same quarter of 2022. Parent company Genuine Parts Co. (GPC) said the Motion business had a 0.3% increase in comparable sales and a 0.6% jump that was attributed to acquisitions. Unfavorable foreign currency impacts affected its sales by 0.3%, and the latest quarter also had one fewer selling day compared to 2022, reducing growth in sales by an estimated 1.6%.
Motion’s profit climbed from $242 million to nearly $283 million in the latest quarter, and its profit margin rose by 180 basis points year-over-year to 12.9%
"Our third-quarter results reflect continued improvement in segment margins, driven by strong team operating discipline despite the slower growth environment,” GPC President and COO Will Stengel said in a statement.
Overall, GPC — which also includes the NAPA Auto Parts brand — posted $5.8 billion in net sales in the latest quarter, a 2.6% increase compared to last year, despite results in the automotive segment that fell “below our expectations." The company largely affirmed its full-year forecast heading into the final quarter of the fiscal year — both GPC as a whole and the Motion segment are expected to see 4% to 6% sales growth — but it tightened its projections for diluted earnings per share from the previous $9.15 to $9.30 up to $9.20 to $9.30.
