MRO and industrial technology giant Motion saw its sales and profit decline in the second quarter of the year amid “softer than expected” market conditions, company officials announced Tuesday.
The company — no. 2 on ID’s latest Big 50 — reported $2.2 billion in sales in the period, which was down 1.1% compared to the same quarter last year. The revenue number benefited from a 0.7% impact from the company’s acquisitions, which helped curb a 1.6% decline in comparable sales and a 0.2% negative impact from foreign currency.
Motion’s profit, meanwhile, fell by 2.3% year-over-year to $277 million during the quarter, which translated to a profit margin of 12.4% — down 10 basis points over that span.
In response, the company trimmed its revenue outlook for the full fiscal year. Motion now expects 2024 sales to be flat to up 2%, reduced from an earlier forecast of 3% to 5% sales growth.
“Our quarterly results reflect softer than expected market conditions which are tempering demand, particularly in our industrial and U.S. and European automotive businesses,” said Will Stengel, president and CEO of Motion parent Genuine Parts Co. “Despite a challenging macro-environment, our teams are operating well and remain focused on executing our long-term strategic initiatives."
GPC, which includes both Motion and the NAPA brand of automotive parts, reported an overall sales total of $6 billion in the second quarter — an increase of 0.8% year-over-year thanks largely to acquisitions in its automotive segment. Gross profit was also up for the full company, while net income dropped from $344 million in the previous second quarter to $296 million in the latest period.
GPC also reduced its company-wide, full-year projections for sales and earnings.
