This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
(NYSE:GGG) today announced results for the first quarter ended March 28, 2014.
$ in millions except per share amounts
Thirteen Weeks Ended
Diluted Net Earnings per Common Share
Sales increased 8 percent, including 3 percentage points from acquired operations. All reportable segments had single digit percentage increases. Sales increases in the Americas and EMEA were partially offset by a decrease in Asia Pacific.
Gross margin rate was lower than the comparable period last year due to acquisition-related inventory charges, lower margins from acquired operations and changes in product mix.
Operating earnings increased 4 percent, but a higher effective income tax rate led to a decrease in net earnings.
The Company used $65 million cash to acquire a business and returned $64 million to investors through dividends and Company stock repurchases.
"This is the eleventh consecutive quarter of Graco reporting record quarterly sales," said Patrick J. McHale, Graco's President & CEO. "We experienced good organic growth in all of our reportable segments in the Americas, led by a double digit sales increase in our Contractor business that continues to benefit from the recovery in residential construction. In our EMEA region, mid single-digit organic growth in the developed economies was somewhat offset by reduced customer demand in certain emerging markets due to geopolitical and currency concerns. As expected, sales in the Asia Pacific region declined in the first quarter, reflecting uneven demand rates."