Motion Industries Q2 Sales & Profit Dip, EIS Inc. Gains

Genuine Parts Company cited ongoing economic choppiness as cause for decreases at Motion Industries, while acquisitions and core sales growth boosted EIS in the quarter.

Atlanta, GA-based Genuine Parts Company, the parent company of Motion Industries and EIS, Inc., announced Monday its earnings for the 2015 second quarter and six months period ended June 30.

GPC had Q2 sales of $3.94 billion, up 1 percent year-over-year. Profit was $195.4 million, down 1.2 percent from last year. For the six month period, GPC had total sales of $7.58 billion, up 1.9 percent year-over-year, while profit of $356.4 million was up $1.1 million from a year ago.

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Sales at Motion Industries – No. 9 on Industrial Distribution's 2014 Big 50 List – were $1.18 billion, down 1.7 percent from last year. GPC said the decrease represented the Motion Industries' underlying growth, as a 1 percent contribution from acquisitions was offset by an equal currency headwind. Motion Industries' Q2 operating profit was $88.9 million, down 6.8 percent from a year ago. Sales for the first six months of 2015 were $1.19 billion, down $21 million YOY, while operating profit of $176.6 million was down $1.83 million.

"Our results reflect the moderation in our sales and earnings growth rates in the second quarter, primarily due to the ongoing choppiness in the economy. This is especially the case for our Industrial business," said Tom Gallagher, GPC Chairman and Chief Executive Officer.

For GPC's Electrical/Electronic Group – EIS – Q2 sales of $194.7 million were up 3.6 percent from last year, while operating profit was up 12.8 percent to $18.6 million. GPC said the sales increase included approximately 6 percent growth from acquisitions, a 2 percent decrease in core sales, and a 0.5 percent negative impact from copper pricing. For the six month period, sales were up 2.3 percent to $376.7 million, and operating profit gained 6.4 percent to $34.0 million.

EIS was No. 26 on ID's Big 50.

Q2 Sales for GPC's Automotive Group were essentially flat, up $7 million from last year to $2.1 billion, while operating profit was also relatively unchained at at $.8 million gain. For the sixth month period, Automotive sales and profit were also essentially flat.

Q2 Sales for GPC's Office Products business were $477.8 million, up 14 percent from last year, while operating profit of $34.5 million gained 10.6 percent. For the six month period, Office Products sales were up 15.7 percent to $968.1 million, and operating profit of $71.0 million gained 9.1 percent.