Graco Inc. (NYSE:GGG) today announced results for the quarter and year ended December 27, 2013.
$ in millions except per share amounts
|Quarter Ended||Year Ended|
|Dec 27,||Dec 28,||%||Dec 27,||Dec 28,||%|
Diluted Net Earnings per Common Share
- Cash flow from operations of $243 million was 28 percent higher than last year. The Company applied $148 million of cash to the reduction of long-term debt and returned $129 million to investors through dividends and Company stock repurchases.
- Fourth quarter sales increased in all regions, including double-digit percentage growth in Asia Pacific. Sales for the quarter increased in Contractor and Industrial segments while Lubrication segment sales declined slightly.
- Sales of $1.1 billion for the year were 9 percent higher than last year, led by a double-digit percentage increase in the Contractor segment and solid growth in the Industrial segment.
- Gross margin rates remained strong at 54 percent for the quarter and 55 percent for the year.
- General and administrative expenses for the year decreased $15 million including a $14 million decrease in acquisition and divestiture costs.
- Other expense (income) included dividend income received from the Liquid Finishing businesses held as a cost-method investment. Dividends were $4 million for the quarter in both 2013 and 2012 and $28 million for the year, up from $12 million last year.
- The effective income tax rate in 2013 reflected the favorable effects of higher after-tax dividend income from Liquid Finishing and renewal of the federal R&D credit.
- Changes in currency translation rates did not have a significant effect on consolidated operating results. Favorable effects of rate changes in EMEA offset unfavorable effects in Asia Pacific.
"Graco reported record sales and earnings for the full year and in each quarter of 2013, including the fourth quarter," said Patrick J. McHale, Graco's President and CEO. "Industrial project activity was surprisingly strong in China in the fourth quarter, which lifted our Asia Pacific region to a double-digit performance for the quarter and brought the region back to modest growth for the full year. Contractor segment sales in the Americas approached double-digit growth in the fourth quarter, against a difficult comparison from the prior year. The business executed well throughout 2013, capturing growth from the U.S. housing recovery to grow 22 percent for the full year in the Americas and drove double-digit growth for the segment worldwide. Graco posted fourth quarter and annual growth in every reportable segment and region in 2013, with the exception of our Lubrication segment, which was down slightly in the quarter and flat on the year."