SPR Sales decline

Originally written by Andy Braithwaite and published at Opi

Mid-single-digit declines at SP Richards

US office products wholesaler SP Richards (SPR) has reported a sales decline of almost 5%, parent company Genuine Parts revealed in its Q3 earnings release.

SPR’s sales in the third quarter were $510 million, a year-on-year decrease of 4.7% on both a total and comparable basis.

Sales for the first nine months of the year were $1.53 billion, a reported decline of 2.7% versus the same period in 2016.

SPR’s operating profit for the third quarter was $24 million, a drop of almost 21% compared with Q3 2016, while operating profit for the first nine months of the year was $85.2 million, 12.3% lower than in 2016.

Overall, Genuine Parts’ Q3 sales were just under $4.1 billion, 4% up on the same quarter last year, although operating profit of $310.3 million represented a year-on-year decline of about 8%.

“Our third quarter profitability was impacted by lower gross margin and higher operating expenses, as our initiatives to drive margin expansion did not meet our expectations,” commented Genuine Parts CEO Paul Donahue(pictured). “To that point, our plans and initiatives are underway to expedite corrective action.”

He added: “While we are disappointed with this quarter’s results, we are excited about the opportunities ahead and we move forward with a deep sense of urgency as we focus on maximising shareholder value and positioning the company for long-term success.”

Meanwhile, the group has announced two acquisitions in the US – one in its industrial subsidiary Motion Industries and the other in its Automotive division – that are expected to add around $125 million annually to the top line.