Genuine Parts Co.'s (GPC) third-quarter profit jumped a bigger-than-expected 22% as its auto and industrial businesses' sales continued to improve.
The operator of the NAPA automotive parts chain has seen results improve this year, helped by a recovering manufacturing sector that Chairman and Chief Executive Thomas Gallagher said Friday "is performing well today." Its auto unit--the largest by revenue--has also seen demand improve after weathering the downturn relatively well as consumers fixed old vehicles rather than buy new ones.
Genuine Parts posted a profit of $131.8 million, or 83 cents a share, up from $107.6 million, or 67 cents a share, a year earlier. Sales rose 13% to $2.95 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of 76 cents on $2.85 billion in revenue.
Gross margin narrowed to 28.9% from 29.4% amid higher costs. But that was more than offset by overhead expenses rising just 8.1%.
Genuine Parts' automotive segment saw revenue increase 7.2% while profit grew 15%. Earnings at the industrial business doubled as sales jumped 29% following last year's 22% drop.
Shares closed Thursday at $45.54 and were inactive premarket. The stock is up 20% this year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; email@example.com