Graco Reports Record Fourth Quarter And Annual Sales

Graco Inc. (NYSE: GGG) today announced results for the quarter and year ended December 30, 2011.
 
Summary

$ in millions except per share amounts
    Quarter Ended     Year Ended
Dec 30,     Dec 31,     % Dec 30,     Dec 31,     %
2011 2010 Change 2011 2010 Change
(13 weeks) (14 weeks) (52 weeks) (53 weeks)
 
Net Sales $ 215.6 $ 197.3 9 % $ 895.3 $ 744.1 20 %
Net Earnings 30.4 27.0 13 % 142.3 102.8 38 %
Diluted Net Earnings
per Common Share $ 0.50 $ 0.44 14 % $ 2.32 $ 1.69 37 %
 
  • Sales for the quarter were 9 percent higher than the strong fourth quarter last year, which included 14 weeks, compared to 13 weeks in 2011.
  • Sales for the year increased 20 percent from last year.
  • Lubrication segment sales for the year topped $100 million and operating earnings more than doubled from the previous year.
  • For the year, gross margin rate of 56 percent and return on sales of 16 percent were each 2 percentage points higher than last year.
  • General and administrative expenses include $2 million of acquisition-related costs for the quarter and $8 million for the year.

“The increase in our revenues for the full year 2011 was very broad-based, with strong double-digit growth in all geographies and business segments,” said Patrick J. McHale, Graco’s President and Chief Executive Officer. “Although year-over-year growth decelerated somewhat from the third quarter of 2011, Graco reported revenues that were a record for any fourth quarter in the history of the Company. In addition, the extra week in the 2010 comparables belies the underlying growth in the Company’s weekly order rate experienced in the fourth quarter of 2011. When compared to the same period of the prior year, weekly order intake in the fourth quarter continued to grow at a double-digit rate. These strong results were driven by the Company’s continued investment in new products and geographic expansion.”

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