Genuine Parts trims profit, sales outlook

CEO: Teams working hard to generate growth in tough environment.

Genuine Parts cut its full-year sales and profit outlook while also posting nearly flat results for the third quarter.

The Atlanta-based company, whose businesses include the NAPA auto parts brand, said Wednesday it had profit of $185.3 million for the quarter ended Sept. 30, down from $188.0 million a year earlier. Sales totaled $3.94 billion vs. $3.92 billion.

The company revised its fullyear guidance. It said it now expects sales growth of 0 to 1 percent, from 1 to 2 percent previously, and profit of $4.55 to $4.60 a share, from $4.70 to $4.75 previously. “Our third-quarter results fell short of our expectations. We continue to operate in a tough sales environment, but our teams are working hard to overcome these challenges and generate growth,” CEO Paul Donahue said in a release.

Genuine Parts stock fell more than 4 percent Wednesday, to $92.12 a share in regular-hours trading.

The company has moved to add revenue through acquisitions this year. Earlier this month, it said one of its units will buy Braas Company, a Minnesota firm that distributes products for industrial automation and control.

In June, Genuine Parts announced purchases of Auto-Camping, a distributor of foreign car parts, and certain assets of specialty chemicals company Rochester Midland.

Combined, the three deals are expected to bring about $160 million in revenue, Genuine Parts has said.