Genuine Parts Q1 Profit Falls Despite Revenue Growth
Genuine Parts reported a Q1 profit of $189 million as rising labor costs offset higher revenue. The company also maintained its annual profit forecast.
The automotive parts distributor Genuine Parts reported a decline in first-quarter profit as higher expenses across the industry weighed on margins despite steady demand. Rising labor costs, continued freight and logistics pressures, and increased prices for raw materials and energy have driven up expenses for the company. Quarterly revenue rose 6.8% to $6.26 billion, beating the average analyst estimate of $6.17 billion.
Headquartered in the United States, the company posted net income of $189 million, or $1.37 per share, compared with $194 million, or $1.40 per share, from a year earlier. Total operating expenses for the quarter rose 8.9% to $2.05 billion. In the international auto parts segment, the core operating profit margin was 9.1%, representing a 80-basis-point drop from the previous year.
