PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Download our free Blasting Resource Guide eResource Book

Paint and Coatings Industry News

Main News Page


Contractor Sales Shine in Banner Q3 for Graco

Monday, October 25, 2010

Comment | More

Growth in contractor and Asia Pacific sales led a blockbuster third quarter for Graco Inc., which has posted double-digit percentage revenue growth for the quarter and the year to date across all divisions and regions.

Like other coatings-related companies, the Minneapolis-based spray equipment manufacturer turned in a strong performance for the quarter and the year to date.

Net sales for the quarter ended Sept. 24 increased by 29% over 2009, to $190 million, the company reported. Year-to-date sales totaled $546.8 million, a 26% increase over 2009.

Net earnings increased by 76% over 2009 for the third quarter and 139% over 2009 for the year to date. Diluted net earnings per common share increased by 72% for the quarter, to 50 cents, and by 136% for the year to date, to $1.25.

New Product Sales Strong

Sales of new products boosted the Contractor segment. Contractor segment sales increased 27% for the quarter and 19% year-to-date, including gains for the quarter of 29% in the Americas and 30% in Europe (41% at consistent translation rates).

Industrial segment sales increased 27% for the quarter and 31% year-to-date, with the strongest percentage growth in Asia Pacific (up 40% for the quarter and 55% year-to-date).  Lubrication segment sales increased 49% for the quarter and 29% year-to-date, with strong increases in all regions.

“Revenue growth continued to drive improved earnings,” said president and CEO Patrick J. McHale. “Sales gains were strong worldwide, with increases in excess of 20% in all regions.

“We are particularly pleased with the revenue performance of our Contractor segment, which was able to grow with new products despite the depressed conditions in major construction markets.

“Operating margins in our Industrial and Lubrication businesses improved nicely on strong top-line performance, driven by improved economic conditions, new products and solid global execution.”
 
Optimism on Recovery

Higher volume and leveraging of expenses drove continued improvement in operating earnings, particularly in the Industrial and Lubrication segments. In the Contractor segment, operating margin percentages were steady, the company said.

“Although we expect construction markets in the U.S. and parts of Europe will remain in difficult shape for the near term, we are optimistic that the global industrial recovery will continue,” said McHale.

“During the recession, we continued to invest heavily in new product development and international expansion. We are pleased with the resulting flow of exciting new products, from every division, that are contributing to our growth performance, and with the continued strengthening of our teams, infrastructure and channel in Europe and Asia Pacific. ”

Graco’s Contractor Equipment division offers spray equipment designed for professional painting contractors. The Industrial Equipment division provides fluid handling equipment for a wide variety of spray finishing, chemical transfer, sealant, adhesives, lubrication and proportioning applications. The Lubrication Equipment division manufactures products used to dispense, meter and transfer motor and gear oils, grease, hydraulic & transmission fluids, anti-freeze and specialty lubricants.

   

Tagged categories: Contractors; Earnings reports; Economy; Equipment manufacturers; Finance; Graco/Gusmer

Comment Join the Conversation:

Sign in to our community to add your comments.

Sidewinder/Persyst Enterprises, Inc.
The Sidewinder Model M2 Solvent Recycler

Combat the rising cost of gunwash, thinners, acetone & more while drastically reducing waste disposal coat.


SSPC: The Society for Protective Coatings
http://www.sspc.org/

Join SSPC and Enhance
Your Career !


Clemco Industries Corp.
Powerful Protection in a Small Package

Mounts inside blast helmet, alerts operator to dangerous breathing-air condition by audible, visual, and vibratory alarms. Easily calibrated, battery operated.


Atlantic Design, Inc.
OUR INDUSTRY IS CHANGING!

We should know. We’re the ones leading the way. Cleverly simple. Clearly ADI. 866.Call.ADI


Novetas Solutions
Number 1 Crushed Glass Abrasive in America!

Manufactured from 100% Recycled Glass.
NO Crystalline Silica,
Beryllium & Arsenic
Great White Metal Finish!
4 plants on Navy QPL
Call us at 866-775-6226


HoldTight Solutions Inc.
NO FLASH RUST -
NO CONTAMINANTS

Our HoldTight®102 salt remover & flash rush inhibitor prevents flash rust by removing surface contaminants.
Contact us for your nearest distributor. (800) 319.8802 sales@holdtight.com


SAFE Systems, Inc.
SAFE Systems'
Blast Lights &
Deadman Switches

Halogen or LED blast lights available with our NEW urethane bumper. Switches available in many colors for color coding your hoses.


Global Werbeagentur GmbH (obo: Vincentz Network Hannover - European Coatings Show)
European Coatings Show

For the first time over 1,000 exhibitors from all over the world! Plan your visit online now!


U.S. Zinc
Historic Reliability. Innovative Performance.

For 65 years, the success of U.S. Zinc has come from the quality of our people and our products. The protection properties of our zinc dust prolong the life of marine coatings, helping the world work™

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com