Motion on Tuesday posted another quarterly sales decline and indicated that it now expects to see a drop in full-year sales, as well.
The MRO and industrial technology distribution giant — no. 2 on ID’s 2024 Big 50 — reported $2.2 billion in sales in the third quarter of the year, down 1.2% from the third quarter of 2023.
Motion also reported year-over-year revenue declines in the first two quarters of its fiscal year; on Tuesday, the company flipped its full-year sales forecast from projected flat to 2% growth to a likely decline of 1% to 2% compared to 2023.
Genuine Parts Company, Motion’s parent, said the distribution business saw a 2.4% decline in comparable sales in the latest quarter. Recent acquisitions bolstered revenue by 1.3%, while an additional selling day in the U.S. also helped its latest sales total. Motion’s quarterly profit of $259 million was down 8.5% year-over-year, while profit margin slipped 100 basis points to 11.9%.
"Our results were below our expectations, primarily driven by continued weakness in market conditions in Europe and our industrial business,” Will Stengel, Genuine Parts Company’s president and CEO, said in a statement. “While the external environment remains challenging for the balance of 2024, we expect the combination of near-term actions and long-term investments to better position us when market conditions improve."
Overall, GPC — which also includes the NAPA automotive parts brand — reported $6 billion in sales and net income of $227 million during the quarter. The company reduced its overall sales forecast from 1% to 3% annual growth down to 1% to 2%.