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Jun 30, 2020

Genuine Parts Q2 2020 Earnings Report

Genuine Parts Company experienced a decline in sales due to the COVID-19 pandemic but showed improving trends in automotive and executed cost-saving measures.

Key Takeaways

Genuine Parts Company reported a decrease in sales of 14.2% to $3.8 billion, impacted by the COVID-19 pandemic. Diluted net loss per share was $2.52, while diluted adjusted EPS was $1.32. The company strengthened its balance sheet and enhanced liquidity through strong cash flows and the sale of S.P. Richards' U.S. operations.

Sales decreased by 14.2% to $3.8 billion, with a 13.7% decline in comparable sales.

Diluted net loss per share was $2.52, primarily due to a non-cash goodwill impairment charge.

Adjusted EPS from continuing operations was $1.32, a decrease of 10.2% compared to the previous year.

The company completed the sale of S.P. Richards’ U.S. operations and The Safety Zone and Impact Products operations to optimize its portfolio.

Total Revenue
$3.82B
Previous year: $4.93B
-22.5%
EPS
$1.32
Previous year: $1.57
-15.9%
Gross Profit
$1.29B
Previous year: $1.6B
-19.3%
Cash and Equivalents
$984M
Previous year: $563M
+74.9%
Total Assets
$13.3B
Previous year: $14.6B
-9.4%

Genuine Parts

Genuine Parts

Genuine Parts Revenue by Segment

Forward Guidance

The Company withdrew its full-year 2020 guidance due to the economic uncertainty relating to the rapidly evolving COVID-19 pandemic and the limited visibility on the impacts to our businesses. We will not be providing annual guidance updates until macro-economic conditions stabilize.

Revenue & Expenses

Visualization of income flow from segment revenue to net income