Graco Inc.

    Print Page | Close Window

SEC Filings

10-Q
GRACO INC filed this Form 10-Q on 07/26/2017
Entire Document
 << Previous Page | Next Page >>

Page 3 GRACO


Sales increased in all Industrial segment product applications. Year-to-date operating margin rate for the Industrial segment increased 3 percentage points compared to last year. Favorable effects of higher sales volume, improved gross margin rate and expense leverage were partially offset by the unfavorable effect of currency translation.

Components of net sales change by geographic region for the Process segment were as follows:
 
Three Months Ended   
 
Six Months Ended
 
Volume and Price
 
Acquisitions
 
Currency
 
Total
 
Volume and Price
 
Acquisitions
 
Currency
 
Total
Americas
13%
 
0%
 
0%
 
13%
 
12%
 
0%
 
0%
 
12%
EMEA
9%
 
0%
 
(6)%
 
3%
 
12%
 
0%
 
(7)%
 
5%
Asia Pacific
33%
 
0%
 
(3)%
 
30%
 
17%
 
0%
 
(2)%
 
15%
Consolidated
15%
 
0%
 
(2)%
 
13%
 
13%
 
0%
 
(2)%
 
11%

The Process segment had solid sales growth across most product applications, partially offset by the effects of continued weakness in Oil and Natural Gas. Operating margin rates for this segment increased 7 percentage points compared to last year due to higher sales volume, favorable expense leverage and a decrease in intangible amortization related to the impairment recorded in the fourth quarter of 2016.

Components of net sales change by geographic region for the Contractor segment were as follows:
 
Three Months Ended   
 
Six Months Ended
 
Volume and Price
 
Acquisitions
 
Currency
 
Total
 
Volume and Price
 
Acquisitions
 
Currency
 
Total
Americas
2%
 
0%
 
0%
 
2%
 
12%
 
0%
 
0%
 
12%
EMEA
14%
 
0%
 
(4)%
 
10%
 
16%
 
0%
 
(4)%
 
12%
Asia Pacific
7%
 
0%
 
(1)%
 
6%
 
4%
 
0%
 
0%
 
4%
Consolidated
5%
 
0%
 
(1)%
 
4%
 
12%
 
0%
 
0%
 
12%

Contractor segment sales increased 4 percent compared to second quarter last year, which included new product launches that created a tough comparable for this year. Operating margin rates for the Contractor segment increased 3 percentage points compared to last year due to higher sales volume, improved gross margin rate and favorable expense leverage.

Outlook

"Demand in the second quarter remained broad-based across products and geographies and continues to exceed our expectations," stated McHale. "As a result, we are raising our full-year 2017 outlook to mid-to-high single-digit organic sales growth on a constant currency basis worldwide, from a prior outlook of mid single-digit growth. We expect to achieve mid-to-high single-digit growth in each geographic region for the full year 2017."


More . . .


 << Previous Page | Next Page >>