|$ in millions except per share amounts|
|Thirteen Weeks Ended||Twenty-six Weeks Ended|
|June 29,||July 1,||%||June 29,||July 1,||%|
|Diluted Net Earnings|
|per Common Share||$||0.56||$||0.61||(8||)%||$||1.13||$||1.22||(7||)%|
- On April 2, 2012, the Company completed the purchase of the finishing businesses of Illinois Tool Works Inc. (the “Finishing Brands” acquisition), including powder (“Powder Finishing”) and liquid (“Liquid Finishing”) equipment operations.
- Sales for the quarter increased 14 percent, including 13 percentage points ($31 million) from the addition of Powder Finishing operations. Year-to-date sales increased 11 percent, with 7 percentage points from Powder Finishing.
- Changes in currency translation rates decreased sales by approximately $7 million for the quarter and $8 million year-to-date, and decreased net earnings by approximately $3 million for both the quarter and year-to-date.
- Lubrication segment posted double-digit percentage growth in sales and operating earnings for both the quarter and year-to-date.
- Contractor segment operating earnings increased 9 percent for the quarter and 11 percent year-to-date, on modest increases in sales (2 percent for both the quarter and year-to-date).
- Costs and expenses related to the acquisition of Finishing Brands included:
- Non-recurring charges totaling $7 million related to inventory that reduced gross margin percentages for both the quarter and year-to-date.
- Acquisition expenses included in operating expenses were $7 million for the quarter and $11 million year-to-date, up $5 million and $9 million, respectively, compared to last year.
- Interest expense increased $4 million for the quarter and $7 million year-to-date.
- Other expense (income) includes $4 million of dividend income received from the Liquid Finishing business held as a cost-method investment.