Genuine Parts Company has recently released its 10-Q report, revealing the company's operations in the global distribution of automotive and industrial replacement parts. The company operates in North America, Europe, and Australasia, with more than 10,700 locations. Genuine Parts' Automotive Parts Group accounted for approximately 62% of total revenues for the six months ended June 30, 2024, while the Industrial Parts Group accounted for approximately 38% of total revenues during the same period.
In the second quarter of 2024, Genuine Parts reported a 0.8% year-over-year net sales growth, driven by growth in the Automotive segment, partially offset by a modest decline in the Industrial segment. The company's gross margin improved by 50 basis points year-over-year, but net income declined by $49 million primarily due to restructuring costs, investments in technology, and increased personnel costs resulting from acquisitions and inflation.
For the three months ended June 30, 2024, Genuine Parts reported net sales of $5.96 billion, representing a 0.8% increase compared to the same period in 2023. The company's gross profit for the same period increased by 2.1% to $2.18 billion, with a gross margin of 36.6%. However, net income for the period decreased by 14.2% to $295.5 million.
In the Automotive segment, sales for the three months ended June 30, 2024, were $3.7 billion, reflecting a 2.0% increase from 2023. This increase was primarily driven by acquisitions, partially offset by a decrease in comparable sales and an unfavorable impact of foreign currency. In the Industrial segment, net sales for the same period were $2.2 billion, representing a 1.1% decrease compared to 2023, mainly due to a decrease in comparable sales and an unfavorable impact of foreign currency.
The company's effective income tax rate for the three and six month periods ended June 30, 2024, was 23.5% and 24.5%, respectively. The net income for the six months ended June 30, 2024, was $544.4 million, a decrease of 16.0% compared to the same period in 2023.
As a result of these announcements, the company's shares have moved -0.6% on the market, and are now trading at a price of $137.5. If you want to know more, read the company's complete 10-Q report here.
