Graco Inc.

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SEC Filings

10-Q
GRACO INC filed this Form 10-Q on 07/26/2017
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Net Sales

The following table presents net sales by geographic region (in millions):
 
Three Months Ended   
 
Six Months Ended
 
June 30,
2017
 
June 24,
2016
 
June 30,
2017
 
June 24,
2016
Americas(1)
$
221.4

 
$
207.5

 
$
421.4

 
$
380.9

EMEA(2)
87.0

 
80.1

 
166.1

 
155.8

Asia Pacific
71.1

 
60.5

 
132.6

 
116.3

Consolidated
$
379.5

 
$
348.1

 
$
720.1

 
$
653.0

(1)
North, South and Central America, including the United States
(2)
Europe, Middle East and Africa

The following table presents the components of net sales change by geographic region:
 
Three Months Ended   
 
Six Months Ended
 
Volume and Price
 
Acquisitions
 
Currency
 
Total
 
Volume and Price
 
Acquisitions
 
Currency
 
Total
Americas
7%
 
0%
 
0%
 
7%
 
11%
 
0%
 
0%
 
11%
EMEA
12%
 
0%
 
(3)%
 
9%
 
11%
 
0%
 
(4)%
 
7%
Asia Pacific
20%
 
0%
 
(2)%
 
18%
 
16%
 
0%
 
(2)%
 
14%
Consolidated
10%
 
0%
 
(1)%
 
9%
 
12%
 
0%
 
(2)%
 
10%

Gross Profit

Gross profit margin rate increased by one-half percentage point for the quarter and one percentage point for the year to date. Favorable effects from higher production volume and realized pricing were partially offset by unfavorable impacts of currency translation and product mix.

Operating Expenses

Total operating expenses for the quarter and year to date were slightly lower than last year. Year-to-date reductions from the impact of currency translation, decreased amortization expense and lower unallocated corporate expenses (mostly central warehouse) more than offset volume and rate-related increases.

Income Taxes

The effective income tax rate for the quarter was 17 percent, down from 31 percent last year. The effective income tax rate for the year to date was 21 percent, down from 31 percent last year. Adoption of a new accounting standard, requiring excess tax benefits related to stock option exercises to be credited to the income tax provision (formerly credited to equity), reduced the tax provision by $13.6 million for the quarter and $17.2 million for the year to date, decreasing the effective tax rate for the quarter and year to date by 14 and 10 percentage points, respectively.


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