Automakers are getting increasingly aggressive in buying their own parts.
That has resulted in more people shopping for parts at the same time.
This has led to more of a competitive advantage for U.S.-based auto parts retailer World Auto Parts (WAP), which recently reported fourth-quarter earnings that beat Wall Street’s expectations.
The stock has climbed by nearly 25% this year, after recovering from the worst of the global financial crisis in early 2009.
WAP said its sales increased by about 2% for the quarter, a strong performance after the recession.
Wap has also seen strong sales of its new line of high-tech parts, such as the Wartech electric car battery.
The company said its profit rose to $5.8 billion, or about $6.60 per share, from $5 billion, a decline of nearly $2 billion.
Its sales rose to about $4.7 billion, up by about 10% from the previous quarter.
Analysts expect Wap’s profit to grow by as much as 5%.
“We have made significant progress since the onset of the crisis,” CEO Stephen Deere said in a statement.
“World Auto Parts has been an important player in the global auto market and our team continues to evolve as a leader in advanced manufacturing and parts distribution.”
WAP reported its first-quarter profit of $1.6 billion, and its second-quarter profits of $4 billion.
The results are also a good sign for the stock, which is trading around $2.80 per share after falling as much in the second quarter as it has in the first.
The shares have risen by about 12% this past year, according to FactSet.
The auto parts company said last week it plans to invest $150 million to expand its U.K. operations and hire more people.