Posted April 15, 2011
Motion Industries sales climb 24%
Sales for Motion Industries were up 24% to $999.7 million in the first quarter of 2011.
That compares to sales of $803.3 million in the same period last year. The company had operating profit of $66 million for the quarter, a 35% improvement from profit of $48.8 million last year.
Motion parent Genuine Parts Company announced record sales totaling $3.0 billion, a 14% increase compared to the first quarter of 2010. Net income for the quarter was $126.5 million, an increase of 26% over $100.6 million recorded in the same period of the previous year. Earnings per share on a diluted basis were 80 cents, up 27% compared to 63 cents for the first quarter last year.
In a conference call with investors, Genuine Parts chairman, president and CEO Tom Gallagher said this marks the fourth consecutive quarter of better than 20% sales increases for Motion Industries. He said acquisitions added 5% to the increase, but the results were broad based, "as evidenced by the fact that every one of their top 12 product categories is running double-digit increases year-to-date."
As a group, these 12 categories are up 25%. He said Motion's top 10 customer segments are up 30% through the first quarter, and the top 20 individual customers have a collective year-to-date increase of 30%. All geographic areas showed strong double-digit improvement throughout the first quarter.
"So from a number of different viewpoints, the Industrial business remain strong and with the industrial production and capacity utilization indices each continuing to remain at healthy levels. And with good execution on the growth initiatives, we're optimistic about our prospects in the Industrial segment over the next several quarters" Gallagher said.
