July 22 (Reuters) - Genuine Parts Company ( GPC ) cut
its annual profit forecast on Tuesday due to tariff-related
uncertainty, sending the shares of the auto parts distributor
down nearly 1% before the bell.
U.S. President Donald Trump's tariffs combined with
inflationary headwinds are complicating the automotive industry
as companies try to localize their supply chains.
"We remain focused on what we can control as we proactively
manage through an evolving external environment," CEO Will
Stengel said.
The Atlanta-based company cuts 2025 adjusted profit forecast
to between $7.50 and $8.00 from $7.75 and $8.25. It also slashed
its annual revenue growth to 1%-3% from its prior expectation of
2%-4%.
The company's cost-saving measures has helped it offset
rising operational expenses and challenges related to tighter
inventory levels.
It reported second-quarter revenue of $6.16 billion, above
expectations of $6.12 billion, according to data compiled by
LSEG.
Genuine Parts ( GPC ) reported a second-quarter adjusted net income
of $255 million, or $2.10 per share, below analysts' estimate of
$2.07 per share.