Genuine Parts Co.'s (GPC) second-quarter profit slid a less-than-expected 22% as its auto-parts business held up and the company's industrial operations continued to slump.

The operator of NAPA parts stores has been cutting costs as industrial-production declines more than offset the gains many makers and distributors of replacement auto parts have seen as cash-strapped consumers put off buying new vehicles in favor of patching up old ones.

Chairman and Chief Executive Thomas C. Gallagher said the latest results "reflect the realities of a difficult economy" and added the second half of the year would see the company supporting growth initiatives and cost-reduction efforts.

Genuine Parts posted earnings of $103.6 million, or 65 cents a share, down from $133.1 million, or 81 cents a share, a year earlier. Net sales dropped 12% to $2.54 billion.

Analysts surveyed by Thomson Reuters expected earnings of 62 cents a share on revenue of $2.57 billion.

Gross margin ticked down to 29.4% from 29.7%.

The company's automotive unit eked out a 2% profit rise, though sales fell 4.8%. But profit in the industrial segment tumbled 59% on a 22% sales drop.

Genuine Parts is the largest member and majority owner of the National Automotive Parts Association, a voluntary trade group that distributes automotive replacement parts in North America. Genuine Parts also distributes industrial parts, business products and electrical components.

-By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com