Graco Inc.

    Print Page | Close Window

SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/16/2016
Entire Document
 << Previous Page | Next Page >>

The Contractor segment remains unchanged. The Contractor segment markets sprayers for architectural coatings for painting, corrosion control, texture and line striping.

The following table presents net sales and operating earnings by business segment (in millions):
 
2015
 
2014
 
2013
Sales
 
 
 
 
 
Industrial
$
616

 
$
622

 
$
581

Process
273

 
223

 
180

Contractor
397

 
376

 
343

Total
$
1,286

 
$
1,221

 
$
1,104

Operating Earnings
 
 
 
 
 
Industrial
$
202

 
$
204

 
$
189

Process
44

 
47

 
45

Contractor
86

 
82

 
72

Unallocated corporate
(30
)
 
(24
)
 
(26
)
Total
$
302

 
$
309

 
$
280


Industrial

The following table presents net sales, components of net sales change and operating earnings as a percentage of sales for the Industrial segment (dollars in millions):
 
2015
 
2014
 
2013
Sales
 
 
 
 
 
Americas
$
289

 
$
273

 
$
247

EMEA
173

 
196

 
184

Asia Pacific
154

 
153

 
150

Total
$
616

 
$
622

 
$
581

Components of Net Sales Change
 
 
 
 
 
Volume and Price
3
 %
 
5
%
 
3
%
Acquisitions
2
 %
 
2
%
 
6
%
Currency
(6
)%
 
%
 
%
Total
(1
)%
 
7
%
 
9
%
Operating Earnings as a Percentage of Sales
33
 %
 
33
%
 
32
%

In 2015, sales in the Industrial segment totaled $616 million, a decrease of 1 percent from the prior year (increase of 5 percent at consistent translation rates). Sales for the year increased 6 percent in the Americas, decreased 12 percent in EMEA (increased 1 percent at consistent translation rates) and were flat in Asia Pacific (increased 4 percent at consistent translation rates). Acquired operations contributed $10 million (2 percentage points) of growth in the Industrial segment for the year. Operating margin rates for the Industrial segment were consistent with prior year, with favorable price realization, product mix, and cost and expense management offsetting the unfavorable effect of foreign currency translation rates.

In 2014, sales in the Industrial segment totaled $622 million, an increase of 7 percent from the prior year. Sales for the year increased 10 percent in the Americas, 6 percent in EMEA and 2 percent in Asia Pacific. Acquired operations contributed $11 million (2 percentage points) of growth in the Industrial segment for the year. Higher sales volume and expense leverage led to improved operating earnings as a percentage of sales compared to 2013.

In this segment, sales in each geographic region are significant and management looks at economic and financial indicators in each region, including gross domestic product, industrial production, capital investment rates, automobile production, building construction and the level of the U.S. dollar versus the euro, the Swiss franc, the Canadian dollar, the Australian dollar and various Asian currencies.


21

 << Previous Page | Next Page >>