Auto parts distributor Genuine Parts lowered its full-year profit outlook on Tuesday, as rising costs and a tougher consumer environment weighed on its expectations.
Geopolitical tensions in the Middle East have compounded challenges for the automotive sector by pushing up fuel prices and weighing on consumer spending.
Here are details from the company’s results:
- The company lowered its 2026 profit forecast to a range of US$5.90 to US$6.40 per share from its earlier US$6.10 to US$6.60 per share projection.
- Reaffirmed full-year adjusted profit forecast between US$7.50 and US$8 per share. 2026 sales growth unchanged at 3 per cent to 5.5 per cent.
- Second-quarter adjusted profit came in at US$2.15 per share, above analysts’ average estimate of US$2.08 per share, according to data compiled by LSEG.
- Genuine Parts North America Automotive business sales were up 3.8 per cent at US$2.5 billion and International Automotive business sales rose 8.2 per cent to US$1.6 billion from a year ago.
- The company’s quarterly revenue rose 6 per cent to US$6.54 billion, beating analysts’ average estimate of US$6.43 billion.
- In February, Genuine Parts unveiled plans to separate its automotive and industrial businesses, contending that the two operations would command greater value as independent companies.
- “We remain on track to complete our planned separation in the first quarter of 2027,” said CEO Will Stengel.
- The restructuring was backed by activist investor Elliott Investment Management, which maintained that the company’s automotive and industrial units would be valued more highly as distinct businesses.
(Reporting by Apratim Sarkar in Bengaluru; Editing by Harikrishnan Nair)
