Genuine Parts Company Reports 1.7% Sales Increase, Net Income Declines by 31.3%

Genuine Parts Company (GPC) reported a net sales increase of 1.7% for the fiscal year ending December 31, 2024, totaling $23.5 billion, compared to $23.1 billion in 2023. The growth was primarily driven by strategic acquisitions within the Automotive segment, which saw a 3.7% increase in sales to $14.8 billion. However, the company faced challenges in the Industrial segment, where net sales decreased by 1.4% to $8.7 billion, attributed to a 2.1% decline in comparable sales amid a contracting manufacturing sector and economic uncertainty.

Net income for GPC fell significantly by 31.3% to $904 million, down from $1.3 billion in the previous year. This decline was largely due to restructuring costs of $221 million associated with a global initiative aimed at aligning the company's assets and cost structure with current market conditions. Additionally, the company incurred a $62 million charge related to inventory write-downs as part of a new global branding strategy. Selling, general, and administrative expenses rose by 7.7% to $6.6 billion, driven by inflationary pressures and investments in technology.

Operationally, GPC expanded its footprint by acquiring over 500 automotive stores, including significant purchases of Motor Parts & Equipment Corporation and Walker Automotive Supply, which are expected to enhance revenue growth through synergies. The company also added 41 net new stores to its distribution network, bringing the total to over 10,700 locations across North America, Europe, and Australasia. As of December 31, 2024, GPC employed more than 63,000 people globally, reflecting its commitment to maintaining a robust workforce amid ongoing restructuring efforts.

Looking ahead, GPC anticipates continued pressure on revenue and earnings growth in 2025 due to weak market conditions, particularly in the first half of the year. However, the company expects to improve its gross margin through benefits from acquired businesses and ongoing cost management initiatives. GPC remains focused on disciplined capital allocation, including increasing dividends and pursuing strategic acquisitions to enhance its capabilities and geographic reach. The company is optimistic that its restructuring efforts will position it for sustainable growth once macroeconomic conditions improve.