Genuine Parts reaffirmed its adjusted earnings target and trimmed the GAAP one, as separation costs mounted

Two numbers, one quarter. Genuine Parts reported net income of $228 million, or $1.65 per diluted share, down from $255 million and $1.83 a year earlier. Adjusted earnings were $2.15 a share, up from $2.10. The gap between them is $69 million of after-tax costs, or $0.50 a share, tied to a global restructuring and the planned split of the company's automotive and industrial arms, in results dated July 21.

Sales rose 6.0 percent to $6.5 billion. Comparable sales added 3.4 percent, currency 1.4 percent, and acquisitions 1.2 percent. North America Automotive, the NAPA business, grew sales 3.8 percent to $2.5 billion, and international automotive grew 8.2 percent to $1.6 billion. Chairman and chief executive Will Stengel said the company remains on track to complete the separation in the first quarter of 2027.

The full-year outlook moved in both directions. Genuine Parts reaffirmed its adjusted earnings guidance of $7.50 to $8.00 a share, but lowered its GAAP range to $5.90 to $6.40, from $6.10 to $6.60. It trimmed expected North America automotive sales growth to a range of 2.5 to 4.5 percent, from 3 to 5 percent, and raised international automotive growth to 5 to 8 percent, from 3 to 6 percent. Total sales growth guidance, cash flow, and the industrial outlook were left unchanged.