Q2 2024 Genuine Parts Co Earnings Call Transcript
Key Points
- Total GPC sales increased by approximately 1% to $6 billion compared to the same period last year.
- Gross margin improved by 50 basis points due to strategic sourcing and pricing initiatives.
- The acquisition of Motor Parts and Equipment Corporation added 181 locations, enhancing GPC's market presence.
- Global automotive segment showed positive sales growth in local currency across all geographies.
- Strong cash flow generation with $612 million in cash from operations and $353 million in free cash flow for the first six months of 2024.
- Second quarter results were below expectations due to weaker customer demand in industrial and automotive segments.
- Sales in the global industrial segment decreased by approximately 1%, with comparable sales down 1.6%.
- Higher interest rates, geopolitical uncertainty, and persistent inflation negatively impacted customer demand.
- Adjusted earnings remained flat year over year for the quarter.
- SG&A expenses increased by 80 basis points, driven by higher salaries, wages, and rent expenses.
Good day, ladies and gentlemen. Welcome to the Genuine Parts Company second-quarter 2024 earnings conference call. (Operator Instructions) This call is being recorded on Tuesday, July 23, 2024.
At this time, I would like to turn the conference over to Tim Walsh, Senior Director, Investor Relations. Please go ahead sir.
Thank you. Good morning, everyone. Welcome a Genuine Parts Company second-quarter 2024 earnings call. Joining us on the call today are Will Stengel, President and Chief Executive Officer; and Bert Nappier, Executive Vice President and Chief Financial Officer.
In addition to this morning's press release, a supplemental slide presentation can be found on the Investors page of the Genuine Parts company's website. Today's call is being webcast and a replay will also be made available on the company's website after the call. Following our prepared remarks, the call will be open for questions and the responses to, which will reflect management's views as of today, July
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