Genuine Parts Company (GPC) has reported 5.43 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $152.52 million, or $1.02 a share in the quarter, compared with $161.27 million, or $1.07 a share for the same period last year.
Revenue during the quarter went up marginally by 2.67 percent to $3,780.06 million from $3,681.79 million in the previous year period. Gross margin for the quarter expanded 17 basis points over the previous year period to 29.92 percent. Total expenses were 93.75 percent of quarterly revenues, up from 92.89 percent for the same period last year. That has resulted in a contraction of 85 basis points in operating margin to 6.25 percent.
Operating income for the quarter was $236.29 million, compared with $261.61 million in the previous year period.
Paul Donahue, president and chief executive officer, commented, "The fourth quarter was our strongest quarterly sales performance of the year, with acquisitions being the primary growth driver in each of our four business segments. With that said, we did see improvement in our comparable sales trends in the Automotive, Industrial and Electrical/Electronic businesses relative to the second and third quarters of 2016. Generally, we operated in more favorable market conditions as the fourth quarter progressed, and our teams were in position to benefit from that."
For financial year 2017, the company projects diluted earnings per share to be in the range of $4.70 to $4.80.
Operating cash flow declinesGenuine Parts Company has generated cash of $946.08 million from operating activities during the year, down 18.40 percent or $213.30 million, when compared with the last year. The company has spent $594 million cash to meet investing activities during the year as against cash outgo of $263.63 million in the last year.
The company has spent $322.41 million cash to carry out financing activities during the year as against cash outgo of $806.07 million in the last year period.
Cash and cash equivalents stood at $242.88 million as on Dec. 31, 2016, up 14.77 percent or $31.25 million from $211.63 million on Dec. 31, 2015.
Working capital increases
Genuine Parts Co has recorded an increase in the working capital over the last year. It stood at $1,704.28 million as at Dec. 31, 2016, up 5.55 percent or $89.62 million from $1,614.66 million on Dec. 31, 2015. Current ratio was at 1.40 as on Dec. 31, 2016, down from 1.41 on Dec. 31, 2015.
Cash conversion cycle (CCC) was almost stable at 26 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 24 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 56 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went up to 54 days for the quarter from 50 for the same period last year.
Debt increases substantiallyGenuine Parts Company has witnessed an increase in total debt over the last one year. It stood at $875 million as on Dec. 31, 2016, up 40 percent or $250 million from $625 million on Dec. 31, 2015. Total debt was 9.88 percent of total assets as on Dec. 31, 2016, compared with 7.67 percent on Dec. 31, 2015. Debt to equity ratio was at 0.27 as on Dec. 31, 2016, up from 0.20 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
