By Jack Keough
Genuine Parts Company has reported that EIS, its electrical/electronics segment, recorded a 5 percent decrease in sales during the first quarter.
“The electronic side of the business actually had a very good first quarter with sales up low double digits,” said Thomas C. Gallagher, chairman and CEO of GPC.
While EIS experienced growth in the electronics segment, decreases in both the electrical and the wire and cables segments pulled down the overall results.
“The biggest factor in the electrical segment was a drop-off in demand in the alternative energy sector. And the biggest factor contributing to the wire and cable decrease was a slowdown in the defense contractor business, which we attribute to the near-term impact of sequestration,” Gallagher noted.
Gallagher, however, said he sees some early signs of improvement. This, combined with the company’s internal growth initiatives, still gives an expectation of positive growth for EIS in the full year.
Jack Keough was the editor of Industrial Distribution magazine for more than 26 years. He often speaks at many industry events and seminars. He can be reached at email@example.com or firstname.lastname@example.orgTagged with tED