Genuine Parts cuts full-year profit forecast on inflation, weaker consumer spending

July 21(Reuters) - Auto ‌parts distributor Genuine ​Parts ​lowered its full-year profit outlook on Tuesday, as rising costs and a tougher consumer environment ‌weighed on its expectations.

Geopolitical tensions in the Middle ⁠East have compounded challenges for the automotive sector by pushing up ‌fuel prices and weighing on ‌consumer spending.

Here are details from the company's results:

• The company lowered its 2026 profit forecast to a range ​of $5.90 to $6.40 per share from its earlier $6.10 to $6.60 per share projection.

• Reaffirmed full-year adjusted profit forecast between $7.50 ⁠and $8 per share. 2026 sales growth unchanged at 3% to 5.5%.

• Second-quarter adjusted ​profit came in at $2.15 per share, above analysts' average estimate of $2.08 per share, according to ​data compiled by LSEG.

• Genuine Parts ‌North America Automotive business sales were up 3.8% at $2.5 billion and International Automotive business ⁠sales rose 8.2% to $1.6 billion from a year ago.

• The company's quarterly revenue rose 6% to $6.54 billion, beating analysts' average estimate ⁠of $6.43 billion.

• In February, Genuine Parts unveiled plans to separate its ​automotive and industrial businesses, contending that the two operations would command greater value as independent companies.

• "We remain on track to complete our ‌planned separation in the first quarter of 2027," said CEO Will Stengel.

• The restructuring ‌was backed by activist investor Elliott Investment Management, which maintained ⁠that the company's automotive ‌and industrial units ​would be valued more highly as distinct businesses.

(Reporting by Apratim Sarkar in Bengaluru; Editing by Harikrishnan ‌Nair)

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