The company now projects diluted earnings per share between $5.90 and $6.40 for the year, tightening the previous range of $6.10 to $6.60. While total sales growth remains anchored to an outlook of 3% to 5.5%, the domestic automotive segment is now expected to grow at a more modest 2.5% to 4.5%. Conversely, international automotive sales are showing resilience, with growth projections climbing to a range of 5% to 8%.
In section Market Quotes
Genuine Parts Lowers Annual Forecasts Amid Softening Demand
A cooling North American automotive market has forced Genuine Parts to scale back its full-year profit expectations, even as the industrial replacement parts supplier managed to outperform second-quarter earnings projections. The firm cited persistent regional demand weakness and rising restructuring costs as the primary drivers behind the downward revision.
Despite the lowered outlook, the second quarter showed a complex financial picture. Net income dropped to $227.6 million, or $1.65 per share, compared with $254.9 million during the same period last year. However, adjusted earnings of $2.15 per share exceeded the $2.08 consensus forecast from FactSet. Net sales reached $6.54 billion, bolstered by a 3.4% increase in comparable sales alongside favorable currency impacts and recent acquisitions.
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