Taken a look at our third quarter financial results, total sales were 4.8 billion up 10% from last year and up 11% from Q3 of 2019.
As a result, segment profit increased 14% and our segment margin improved 30 basis points to 9.3%.
This represents our strongest margin in 2 decades and confirms our key initiatives are driving meaningful improvements.
Net income was 229 million or a $1.59 for diluted share and adjusted net income was 270 million or a $1.88 per share.
This is a 15% increase from 2020 and establishes a new record for GPC's quarterly earnings, so just an outstanding job by the GPC team.
Total sales for global automotive also set a new record at 3.2 billion for the quarter.
This represents an 8% increase from Q3 2020, and a 15% increase from Q3 of 2019.
On a comp basis, sales were up 5% from last year and up 7% on a two-year stack, with our strongest year-over-year automotive comps coming from the U.S. business.
As examples, we recently finalized an exclusive partnership in the education space for technician recruitment with over 10,000 active tech students in the process of earning their credentials.
This battery will be available to all consumers with a focus on the over 62 million AAA cardholders and 5,400 approved auto repair centers.
Looking next at our automotive highlights by region, total U.S. sales were up 9%.
Comp sales increased 8% from last year and are up 5% on a 2 year stack.
In Canada, total sales were up 1% with comp sales essentially flat both year-over-year and on a two-year stack as lockdowns in major markets have slowed the recovery.
it's been encouraging to see these restrictions of easing of late, which should lead to stronger demand through the final 3 months of 2021.
NAPA online, B2C sales continue to grow at a rapid pace, up over 40% from the third quarter, and up 2x from 2019.
We would add that our NAPA AutoCare membership has surged with the reopening of markets and includes nearly 400 shop upgrades thus far in 2021.
Our AAD team in Europe continue to perform well with total Q3 sales up 8%, were up a strong 23% on a two-year stack.
Comp sales increased 2.5% from last year and were up 14% on a 2-year stack.
While the UK and Benelux continue to stand out with really strong results, we were pleased with the solid results in each of our 7 European markets.
Now looking at our Asia-Pac business, total sales were up 2% from 2020 and up 18% on a 2-year stack.
Comp sales were up slightly from last year and up 15% on a 2-year stack.
Total sales for this segment were 1.6 billion, a strong 15% increase from last year, and a 5% increase from 2019.
Comp sales were up 13% and up 4% on a 2-year stack.
We partner with the best manufacturers in the industry to provide Tier 1 brand, our customers demand.
With these fundamentals of our business in mind, our focus on continued profitable growth in this segment remained grounded in 5 key initiatives.
As examples, Motion.com and our inside sales center, which has grown from 15 to now, 35 reps in just 6 months continue to drive incremental sales from new motion customers.
Similarly, approximately 70 of our motion Executive and field leaders from around the country, recently had the chance to meet in person for the first time since early 2020, to detail business performance and review strategic initiatives priorities.
In Europe, our AAG executive leadership team recently met together in person for the first time in nearly 2 years.
Our Atlanta-based GPC and U.S. NAPA field support teams also hosted an employee appreciation event for 400 teammates, that included a well-received visit from our celebrity NAPA racing teammates, including Chase Elliott.
Recapping revenues, total GPC sales were 4.8 billion in the third quarter, up 10%.
Gross margin improved to 35.5%, an increase of 50 basis points from 35%, last year.
Our team was positioned to address these increases with effective pricing and global sourcing strategies and price inflation improve neutral to gross margin.
On a total Company basis, we estimate a 3% inflationary impact on Q3 sales, consisting of 3.5% inflation in global automotive, and 1% to 2% in industrial.
Our total adjusted operating and non-operating expenses were 1.35 billion in the third quarter, up 11% from 2020 and at 28% of sales.
The increase from last year is due to several factors, including the prior-year benefit of approximately 60 million and temporary savings related to the pandemic.
Additionally, our third quarter expenses reflect the increase in variable costs on the 450 million in additional year-over-year sales, as well as cost pressures in areas such as wages, Incentive compensation flight, rent, and health insurance.
Our total segment profit in the third quarter was 447 million up 14%.
Our segment profit margin was 9.3% compared to 9% last year, a 30 basis point year-over-year improvement, and up a 130 basis points from 2019.
Looking ahead, we raised our margin expectations for the full year and we currently expect segment profit margin to improve 40 to 50 basis points from 2020 or 80 to 90 basis points from 2019.
This would be our strongest full year margin in more than 20 years.
Our tax rate for the third quarter was 24.9% on an adjusted basis, up from 23.4% last year, with the increase in rate primarily related to income mix shift to higher tax jurisdictions.
Our third quarter net income from continuing operations was 229 million, with diluted earnings per share of a $1.59.
Our adjusted net income was 270 million or a $1.88 per diluted share, which compares to 237 million or a $1.63 per adjusted diluted share in the prior year, a 15% increase.
So turning to our third quarter results by segment, our total automotive revenue was 3.2 billion up 8% from last year.
Our segment profit increased 6% to 281 million with profit margin as solid 8.8%.
While down 20 basis points from 2020 due to the prior-year benefit of temporary savings, this represents an 80 basis point margin improvement over 2019 and reflects the underlying progress in our operations.
For the 9 months profit margin is 8.6% up 80 basis points from 2020 and up 90 basis points from 2019, driven primarily by margin expansion in our U.S. and European operations.
Our industrial sales were 1.6 billion up 15% from 2020.
Segment profit of a 166 million was up a strong 32% from a year ago and profit margin improved to a 10.3%.
This is a 140 basis points from 2020 and up 220 basis points from 2019 and the first double-digit margin for industrial since the Fourth Quarter of 2006.
Year-to-date profit margin for this segment is 9.4% up a 120 basis points from 2020 and up a 150 basis points from 2019.
At September 30th, total accounts receivable is down 3.5%, primarily due to the timing of the 300 million in accounts receivables sold in October of 2020.
Inventory was up 10% in line with our sales increase and a reflection of our commitment to having the right parts, in the right place, at the right time.
Accounts payable increased 20% from last year due to the increase in inventory and favorable payment terms with certain suppliers.
Our AP to inventory ratio improved to 129% from 118% last year.
Our total debt is 2.4 billion down 474 million or 16% from September of last year, and down 245 million from December 31 of 2020.
We closed the third quarter with available liquidity of 2.4 billion and our total debt to adjusted EBITDA improved to 1.5 times from 2.2 times last year.
We also continue to generate strong cash flow with another 300 million in cash from operations in the third quarter and 1 billion for the 9 months.
We expect our earnings growth and working capital to drive 1.2 billion to 1.4 billion in cash from operations.
And free cash flow of 950 million to 1.15 billion.
For the 9 months we have invested a 138 million in capital expenditures, and we have plans for additional investments to drive organic growth and improve efficiencies and productivity in our operations through the balance of the year.
In addition, we have used approximately a 143 million in cash for strategic acquisitions to accelerate growth.
Consistent with our long-standing dividend policy, we have also paid a total cash dividend of more than 349 million to our shareholders through the 9 months.
The Company has paid a dividend every year since going public in 1948 and has increased the dividend for 65 consecutive years.
And as part of our share repurchase program, we have also been active with share buybacks dating back to 1994.
In the third quarter, we used a $100 million to purchase 800,000 shares, and year-to-date we have used 284 million to purchase 2.2 million shares.
The Company is currently authorized to repurchase up to 12.2 million additional shares, and we expect to remain active in this program in the quarters ahead.
We expect total sales for 2021 to be in the range of +12 to +13%, an increase from our previous guidance of +10 to +12%.
By business, we are guiding to +14 to +15 total sales growth for the Automotive segment, an increase from +11 to +13% and a total sales increase of +10 to +11% for the industrial segment.
An increase + plus 6% to +8% On the earnings side, we're raising our guidance for adjusted diluted earnings per share to a range of $6.60 to $6.65, which is up 25% to 26% from 2020.
This represents an increase from our previous guidance of $6.20 to $6.35.

Summary:
Net income was 229 million or a $1.59 for diluted share and adjusted net income was 270 million or a $1.88 per share.
Recapping revenues, total GPC sales were 4.8 billion in the third quarter, up 10%.
Our team was positioned to address these increases with effective pricing and global sourcing strategies and price inflation improve neutral to gross margin.
Our third quarter net income from continuing operations was 229 million, with diluted earnings per share of a $1.59.
Our adjusted net income was 270 million or a $1.88 per diluted share, which compares to 237 million or a $1.63 per adjusted diluted share in the prior year, a 15% increase.
And free cash flow of 950 million to 1.15 billion.
We expect total sales for 2021 to be in the range of +12 to +13%, an increase from our previous guidance of +10 to +12%.
An increase + plus 6% to +8% On the earnings side, we're raising our guidance for adjusted diluted earnings per share to a range of $6.60 to $6.65, which is up 25% to 26% from 2020.