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AutoZone, Inc. Message Board

  • Pinch_Shot Pinch_Shot Jul 25, 2001 11:35 AM Flag

    Take Note Bulls... what the unbiased

     

    industry execs are saying.... about GPC

    Genuine Parts Q2 earnings slip, outlook flat

    "Auto parts makers who supply replacement parts to the aftermarket have been plagued by slowed demand, as a result of better-made cars and the flagging economy."

    AFTERMARKET OUTLOOK 'SOMEWHAT PERILOUS'

    However, sustained growth in automotive parts may be much more difficult to achieve than the recent slight increases, according to Matthew Stover, an analyst who covers the company for Salomon Smith Barney.

    ``The outlook is somewhat perilous for the aftermarket,'' Stover said. He said inventory levels are too high, and that ``there is way too much distribution capacity out there, which will limit people's ability to raise prices.''

    Genuine Parts said it has cut back on its inventory by $70 million -- but those reductions will also ultimately hinder growth, Stover said.

    Genuine Parts reported $2.12 billion in sales for the quarter, compared with $2.13 billion a year ago.

    The company, whose work force is down 3 percent to 32,000 employees since the beginning of this year, said its industrial, electrical and electronics businesses have been hit by lower production levels among manufacturers across the United States and Canada.

    Sales growth from its office products segment, which rose 4 percent in the second quarter, has slowed and is expected to be the low single-digit range, ``until we get some help from the overall market,'' Prince said.

    This from an article on Yahoo about GPC

    AZO axe sure to fall....

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