In this week’s Tuesday Ticker, General Motors raises its annual forecast, Snap-on sells more and earns less from its repair information division, 3M sees declines in aftermarket sales, Genuine Parts prepares for a slowdown and Axalta changes the terms of its merger with Akzo-Nobel.
GM raises forecast
Strong demand for pickups and SUVs is prompting General Motors to raise its 2026 earnings forecast for the second time.
The Michigan-based automaker owns Chevrolet, Buick, GMC and Cadillac. Its large pickups and SUVs are among its most profitable vehicles.
The firm's North American operating profit margin reached 8.6% during the second quarter, up from 6.1% a year earlier. This means the company kept about 8.6% of operating profit from every dollar of sales in the region, before interest, taxes and certain unusual costs.
Officials said it is also spending less on warranty claims and losing less money on electric vehicles. Sales of vehicles equipped with the Super Cruise driver-assistance system reached record levels during both the quarter and the first half of 2026.
“The business continues to perform very well,” CEO Mary Barra said. “Customer demand in North America remains strong driven by our very attractive lineup of pickups and SUVs.”
GM shares closed at US$79.52 on July 21, up 4.91%.
Snap-on sales rise
Higher sales of tools and equipment are lifting Snap-on’s revenue, but its repair systems and information division is earning less.
The Wisconsin-based company sells tools through its franchise vans. It also supplies repair shops and dealerships with diagnostic equipment, repair information and shop equipment.
During the second quarter, sales rose 4.7% to US$1.24 billion. Total profit increased to US$260.6 million from US$250.3 million.
Sales from the repair systems and information division rose to US$480.3 million from US$468.6 million. The increase came from stronger sales of undercar equipment, diagnostic products and repair information to independent shops. Lower sales to new-vehicle dealerships held back growth.
Despite this, the division’s operating profit fell to US$115.1 million from US$119.8 million. Operating profit is the money left after the ordinary costs of running the division. The division kept about 24 cents from each dollar of sales, down from 25.6 cents one year earlier.
Snap-on also completed its purchases of Diesel Laptops and Hi-Force Hydraulic Tools during the quarter. Diesel Laptops provides diagnostic systems and repair information for commercial vehicles.
“Our performance was again encouraging,” CEO Nick Pinchuk said, pointing to continued growth in sales and earnings.
Snap-on shares closed at US$395.41 on July 23, down 2.65%.
3M aftermarket sales fall
Automotive aftermarket sales are falling at 3M even as stronger results elsewhere allow the company to raise its annual forecast.
The Minnesota-based manufacturer is a major collision repair supplier. Its products include abrasives, masking materials, adhesives, body fillers and paint preparation systems.
Automotive aftermarket sales fell to US$283 million during the second quarter from US$291 million one year earlier. This was a decline of about 3%.
Other parts of the business performed more strongly. Total company sales rose 2.4% to US$6.5 billion.
After removing unusual costs and gains, profit per share rose 11% to US$2.40. Profit per share divides the company’s earnings among its outstanding shares, allowing investors to compare performance over time.
“We delivered a strong second quarter, exceeding expectations,” CEO William Brown said.
The company now expects its adjusted profit to reach between US$8.80 and US$8.95 per share during 2026. Its earlier forecast called for between US$8.50 and US$8.70.
Shares closed at US$170.76 on July 21, up 7.32%.
Genuine Parts lowers forecast
North American automotive sales are rising at Genuine Parts, but the company is preparing for slower growth during the rest of the year.
The Georgia-based company owns the NAPA automotive parts network and Canadian distributor UAP. It supplies repair shops and retail customers with parts, tools and equipment.
North American automotive sales rose 3.8% to US$2.5 billion during the second quarter. However, Genuine Parts lowered its forecast for full-year growth in the region to between 2.5% and 4.5%. Its previous forecast called for growth of between 3% and 5%.
Total company profit fell to US$228 million from US$255 million. The latest figure included US$69 million in after-tax costs connected with restructuring and the planned separation of the company.
Once those costs were removed, underlying profit rose slightly to US$296 million from US$292 million.
Genuine Parts plans to separate its automotive and industrial divisions into two publicly traded companies during the first quarter of 2027. NAPA and UAP would become part of the new automotive company.
“Our teams performed well despite a dynamic global environment,” CEO Will Stengel said. “We remain on track to complete our planned separation in the first quarter of 2027.”
Genuine Parts shares closed at US$119.12 on July 21, down 2.68%.
Axalta rewrites merger rules
Axalta and AkzoNobel are changing how their proposed combined company would be controlled after shareholders raised concerns about the original rules.
Pennsylvania-based Axalta is a major supplier of automotive refinish coatings. Netherlands-based AkzoNobel owns coatings brands including Sikkens.
The companies announced their proposed all-share merger in November 2025. The deal would create a coatings business with approximately US$17 billion in annual revenue. Axalta and AkzoNobel shareholders are scheduled to vote on the merger on August 5.
The original plan would have allowed directors of the combined company to remain in place for five years before every director began facing re-election each year.
That period is now being cut to three years. In practical terms, every director will have to face shareholders two years sooner than originally planned.
The companies are also lowering the level of board support needed to appoint or remove senior executives and make several other important decisions. Those actions will require approval from two-thirds of non-executive directors rather than 75%.
Non-executive directors oversee the business but do not manage its daily operations. The lower threshold would make it slightly easier for the board to replace the CEO, deputy CEO or chief financial officer during the first three years.
“We are pleased to announce these governance enhancements following constructive engagement with our shareholders,” Axalta board chair Rakesh Sachdev said. “We believe these changes reinforce our commitment to strong corporate governance and effective board oversight.”
The remaining merger terms are unchanged. Axalta shares closed at US$31.68 on July 23, down 3.42%.
