Graco Inc.

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SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/21/2017
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Industrial Segment

The following table presents net sales and operating earnings as a percentage of sales for the Industrial segment (dollars in millions):
 
2016
 
2015
 
2014
Sales
 
 
 
 
 
Americas
$
281.3

 
$
288.9

 
$
272.8

EMEA
184.5

 
173.3

 
196.0

Asia Pacific
163.8

 
153.9

 
153.5

Total
$
629.6

 
$
616.1

 
$
622.3

Operating Earnings as a Percentage of Sales
33
%
 
33
%
 
33
%

The following table presents the components of net sales change by geographic region for the Industrial segment:
 
2016
 
2015
 
Volume and Price
 
Acquisitions
 
Currency
 
Total
 
Volume and Price
 
Acquisitions
 
Currency
 
Total
Americas
(2)%
 
0%
 
(1)%
 
(3)%
 
5%
 
2%
 
(1)%
 
6%
EMEA
8%
 
0%
 
(2)%
 
6%
 
1%
 
0%
 
(13)%
 
(12)%
Asia Pacific
7%
 
1%
 
(2)%
 
6%
 
1%
 
3%
 
(4)%
 
0%
Segment Total
3%
 
0%
 
(1)%
 
2%
 
3%
 
2%
 
(6)%
 
(1)%

In 2016, sales in the Industrial segment were down in the Americas, with a weaker capital spending environment and softness in agriculture, energy, mining and heavy machinery markets. The decrease in the Americas was more than offset by increases in EMEA, led by strong growth in the powder business, and in Asia Pacific. Operating margin rates for this segment in 2016 were consistent with the prior year.

In 2015, the effects of currency translation in EMEA and Asia Pacific offset the increase in Industrial segment sales in the Americas. Acquired operations contributed $10 million (2 percentage points) of growth for the year. Operating margin rates for the Industrial segment were consistent with 2014, with favorable price realization, product mix, and cost and expense management offsetting the unfavorable effect of foreign currency translation rates.

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.

Process Segment

The following table presents net sales and operating earnings as a percentage of sales for the Process segment (dollars in millions):
 
2016
 
2015
 
2014
Sales
 
 
 
 
 
Americas
$
170.4

 
$
171.8

 
$
146.6

EMEA
52.4

 
55.0

 
38.4

Asia Pacific
43.8

 
46.8

 
38.2

Total
$
266.6

 
$
273.6

 
$
223.2

Operating Earnings as a Percentage of Sales
13
%
 
16
%
 
21
%


21

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