Graco Inc. (NYSE: GGG) today announced results for the quarter and six months ended June 27, 2014.
$ in millions except per share amounts
|Thirteen Weeks Ended||Twenty-six Weeks Ended|
|June 27,||June 28,||%||June 27,||June 28,||%|
Diluted Net Earnings per Common Share
- Sales for the quarter increased in all reportable segments and regions, with double-digit percentage growth in Industrial and Contractor segments.
- Gross margin rates were slightly lower than last year due to changes in product mix and lower margins from acquired operations.
- Expense leverage offset the effects of lower gross margin rates on operating earnings.
- In the first 6 months of the year, the Company used $65 million cash to acquire a business and returned $127 million to investors through dividends and Company stock repurchases.
"Demand levels around the world firmed in the second quarter, as we experienced solid growth in all segments and geographies," said Patrick J. McHale, Graco's President and CEO. "Contractor segment sales increased double-digits, led by the continued recovery in the U.S. construction sector and an improved professional painting market throughout the EMEA region. The Industrial segment posted organic sales growth in the mid-single digits in all regions and showed growth in every product category, reflecting a broad base of activity levels. Industrial lubrication product demand was the primary driver of the Lubrication segment's high single-digit sales growth in the second quarter. Recent acquisitions and strategic investments in regional and product expansion had a slightly dilutive impact on operating margins, but we believe returns on these investments will contribute to Graco's growth in the quarters and years to come."