Genuine Parts cuts FY automotive sales view to up 1%-2% from up 2%-3%
Says most operations back up and running following Hurricane Matthew. Says Q3 performance fell short of expectations, cites challenging sales environment. Says September the strongest month in an otherwise challenging quarter. Says challenges company facing are "transitory." Says will look at strategic, bolt-on acquisitions. Says pricing environment across businesses relatively unchanged, with very little supplier inflation. Sees FY net interest expense about $20M. Sees FY tax rate 36.2%-36.5%. Says balance sheet "in excellent condition." Sees FY cash from operations $900M-$1B, free cash flow $400M-$450M. Says capital allocation priorities include strategic acquisitions, repurchases, reinvestment in business, dividends. Says acquisitions will mostly be smaller sized companies with annual revenues in $25M-$150M range, but says "open minded" to businesses of all sizes. Sees 2016 CapEx $120M-$140M. Cuts FY16 automotive sales view to up 1%-2% from up 2%-3%. Cuts industrial sales view to flat to down 1% from flat to up 1% and electrical sales view to down 5%-down 6% from down 2%-down 3%, still sees office sales up 2%-3%. Comments taken from the Q3 earnings conference call. Genuine Parts is down 2.8% to $93.68 in late morning trading.