[ 1st Quarter, 1997 | 2nd Quarter, 1997 | 3rd Quarter, 1997 ]
FOR IMMEDIATE RELEASE: Monday, April 14, 1997
FOR FURTHER INFORMATION: Mark W. Sheahan (612) 623-6656
GRACO REPORTS FIRST QUARTER RESULTS
SALES INCREASE 2 PERCENT TO $92.1 MILLION
NET EARNINGS INCREASE 11 PERCENT TO $6.2 MILLION
MINNEAPOLIS, MN (April 14) - Graco Inc. (NYSE: GGG) today announced first quarter net sales of $92.1 million, a 2 percent increase from the same period last year (a 4 percent volume increase, and a decline of 2 percent due to exchange rates). Net earnings of $6.2 million, or 35 cents per share, a first quarter record, were up 11 percent over net earnings of $5.6 million, or 32 cents per share in the first quarter of 1996.
"Graco's sales accelerated during the final weeks of the quarter and orders received in March were at all time record levels. While shipments of lower margin Contractor Equipment products in March and unfavorable exchange rates in the quarter reduced our gross margin to 48%, we were still able to record our eleventh consecutive quarter of year-over-year earnings growth," said President and Chief Executive Officer George Aristides.
GRACO INC. AND SUBSIDIARIES
|
| First Quarter (13 weeks) Ended |
(In thousands, except per share amounts) | Mar. 28, 1997 | Mar. 29, 1996 |
NET SALES | $92,099 | $90,153 |
NET EARNINGS | $6,181 | $5,585 |
NET EARNINGS PER COMMON SHARE | $0.35 | $0.32 |
Weighted Average Number of Common Shares | 17,503 | 17,553 |
Worldwide Industrial/Automotive Equipment sales increased 6 percent from last year's first quarter, Contractor Equipment sales decreased 4 percent and Lubrication Equipment sales increased 6 percent. "Although sales in the Contractor Equipment business were slow in the first two months of the year, the month of March was strong and recent order trends support our positive view for the remainder of the year. Our backlog of $26.4 million has grown $7.3 million since the beginning of 1997," said Aristides.
First quarter sales in the Americas increased 1 percent to $62.6 million, while European sales increased 7 percent to $16.9 million (a 12 percent volume increase, and a decline of 5 percent due to exchange rates). In the Asia Pacific region, sales increased 1 percent to $12.6 million (a 9 percent volume increase, and a decline of 8 percent due to exchange rates).
First quarter operating results include income from the sale of Graco's Franklin Park, Illinois facility which completes the relocation of the company's industrial systems engineering and sales expertise to Minneapolis.
Mr. Aristides said, "Despite unfavorable exchange rates in the first quarter of 1997, we remain optimistic about improved financial performance for the year. We are encouraged by our order levels heading into the second quarter. Graco expects to introduce a number of new products in 1997 and our continued investments in product development, marketing, and manufacturing should have a positive impact on the Company in 1997 and our long-term ability to grow profitability."
Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and apply fluid materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries.
GRACO INC. AND SUBSIDIARIES Consolidated Statements of Earnings |
| First Quarter (13 weeks) Ended |
(In thousands, except per share amounts) | March 28, 1997 | March 29, 1996 |
NET SALES | $92,099 | $90,153 |
Cost of products sold | 47,566 | 45,316 |
GROSS PROFIT | 44,533 | 44,837 |
Product development | 4,825 | 4,229 |
Selling | 21,633 | 19,850 |
General and administrative | 8,555 | 11,675 |
OPERATING PROFIT | 9,520 | 9,083 |
Interest expense | 207 | 232 |
Other (income)/expense, net | (368) | 566 |
EARNINGS BEFORE INCOME TAXES | 9,681 | 8,285 |
Income taxes | _3,500 | 2,700 |
NET EARNINGS | $6,181 | $5,585 |
NET EARNINGS PER COMMON SHARE | $0.35 | $0.32 |
Weighted Average Number of Common Shares | 17,503 | 17,553 |
All figures are subject to audit and adjustment at the end of the fiscal year.
[ 1st Quarter, 1997 | 2nd Quarter, 1997 | 3rd Quarter, 1997 ]
FOR IMMEDIATE RELEASE: Friday, July 11, 1997
FOR FURTHER INFORMATION: Mark W. Sheahan (612) 623-6656
GRACO REPORTS SECOND QUARTER RESULTS
SALES INCREASE 15 PERCENT, NET EARNINGS INCREASE 4 PERCENT
THE HIGHEST QUARTERLY SALES AND EARNINGS IN COMPANY HISTORY
MINNEAPOLIS, MN (July 11) - Graco Inc. (NYSE: GGG) today announced record second quarter net sales of $111.7 million, a 15 percent increase from the same period last year. Net earnings of $10.4 million, or 60 cents per share, the highest quarterly earnings in Company history, were up 4 percent over net earnings of $10.0 million, or 57 cents per share in the second quarter of 1996. The 1996 earnings included pre-tax income of $1.5 million received by the Company in settlement of a lawsuit.
"The sales momentum that we reported at the end of the first quarter of 1997 continued in the second quarter, leading to record quarterly sales and earnings. While product mix, foreign exchange rates, and engineered system sales reduced our gross margins, we were able to record our twelfth consecutive quarter of year-over-year earnings growth," said Chief Executive Officer George Aristides.
GRACO INC. AND SUBSIDIARIES |
| Second Quarter (13 weeks) Ended | Six Months (26 weeks) Ended |
(In Thousands, except per share amounts) | June 27, 1997 | June 28, 1996 | June 27, 1997 | June 28, 1996 |
NET SALES | $111,721 | $97,099 | $203,820 | $187,252 |
NET EARNINGS | $10,418 | $10,032 | $16,599 | $15,617 |
NET EARNINGS PER COMMON SHARE | $0.60 | $0.57 | $0.95 | $0.89 |
Weighted average number of common shares | 17,492 | 17,588 | 17,495 | 17,571 |
Worldwide, Industrial/Automotive Equipment sales increased 9 percent from last year's second quarter, Contractor Equipment sales increased 27 percent due to strong performance and changes in the timing of marketing promotional programs, and Lubrication Equipment sales increased 9 percent. "With the exception of Japan and worldwide Automotive, we were pleased with business activity during the second quarter. Our backlog of $25.3 million has grown by $6.1 million since the beginning of the year and the current rate of incoming orders is satisfactory. Although we are optimistic about the balance of the year, we do not expect to record double digit sales increases during the third and fourth quarters," said Aristides.
Second quarter sales in the Americas increased 19 percent to $75.9 million, and European sales increased 29 percent to $21.9 million (a 39 percent volume increase, and a 10 percent loss due to exchange rate changes). In Asia Pacific, sales decreased 13 percent from last year's second quarter, to $ 13.9 million (a 5 percent volume decrease, and an 8 percent loss due to exchange rate changes).
The effective tax rate for the year declined from the first quarter to 34.5 percent, reflecting lower effective tax rates on foreign earnings. The year-to-date effective tax rate is 3 percentage points higher than the 1996 rate. At the end of the second quarter, the Company had acquired approximately 200,000 shares during 1997 under its ongoing share repurchase plan.
Sales for the six month period increased 9 percent to $203.8 million (an 11 percent volume increase and a 2 percent loss due to exchange rate changes). In the Americas, sales increased 10 percent to $138.5 million. European sales increased 18 percent to $38.8 million (a volume increase of 26 percent and an 8 percent loss due to exchange rate changes). Sales in Asia Pacific decreased 7 percent to $26.5 million (a 1 percent volume increase, and an 8 percent loss due to exchange rate changes). The decline in Asia Pacific was due to poor sales in Japan.
Mr. Aristides said, "We are satisfied by the level of business activity that the Company is experiencing. Our marketing strategies, new products, and packages are being well accepted in the marketplace and we believe that the investments being made in these areas will have a favorable impact on our long term profitability."
In a separate matter, Graco responded to the patent infringement lawsuit filed against the Company by Nordson Corporation (NASDAQ:NDSN). "We believe the facts clearly demonstrate that our PrecisionFlo product does not infringe on Nordson's patent and we will vigorously defend this case. The PrecisionFlo product is a very small portion of our overall sales," said Aristides.
Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and apply fluid materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries.
GRACO INC. AND SUBSIDIARIES Consolidated Statements of Earnings |
| Second Quarter (13 weeks) Ended | Six Months (26 weeks) Ended |
(In thousands, except per share amounts) | June 28, 1996 | June 30, 1995 | June 28, 1996 | June 30, 1995 |
NET SALES | $111,721 | $97,099 | $203,820 | $187,252 |
Cost of products sold | 58,322 | 47,677 | 105,888 | 92,993 |
GROSS PROFIT | 53,399 | 49,422 | 97,932 | 94,259 |
Product development | 4,828 | 4,623 | 9,653 | 8,852 |
Selling | 23,764 | 21,240 | 45,397 | 41,090 |
General and administrative | 8,284 | 10,005 | 16,839 | 21,680 |
OPERATING PROFIT | 16,523 | 13,554 | 26,043 | 22,637 |
Interest expense | 240 | 345 | 447 | 577 |
Other (income) expense, net | 615 | (1,323) | 247 | (757) |
EARNINGS BEFORE INCOME TAXES | 15,668 | 14,532 | 25,349 | 22,817 |
Income taxes | 5,250 | 4,500 | 8,750 | 7,200 |
NET EARNINGS | $10,418 | $10,032 | $16,599 | $15,617 |
NET EARNINGS PER COMMON SHARE | $0.60 | $0.57 | $0.95 | $0.89 |
Weighted average number of common shares | 17,492 | 17,588 | 17,495 | 17,571 |
All figures are subject to audit and adjustment at the end of the fiscal year.
[ 1st Quarter, 1997 | 2nd Quarter, 1997 | 3rd Quarter, 1997 ]
FOR IMMEDIATE RELEASE: Wednesday, October 8, 1997
FOR FURTHER INFORMATION: Mark W. Sheahan (612) 623-6656
GRACO REPORTS RECORD THIRD QUARTER RESULTS
RECORD THIRD QUARTER NET EARNINGS INCREASE 27 PERCENT TO $12.9 MILLION
RECORD THIRD QUARTER NET SALES INCREASE 4 PERCENT TO $102 MILLION
MINNEAPOLIS, MN (October 8) - Graco Inc. (NYSE: GGG) today announced record
third quarter net earnings of $12.9 million, or 74 cents per share, up 27
percent over net earnings of $10.2 million, or 58 cents per share in the
third quarter of 1996. Third quarter net sales of $101.9 million increased
4 percent from the same period last year, an 8 percent volume increase and
a 4 percent reduction due to exchange. The 1997 third quarter earnings
include net income of approximately $450,000 from settlement of a lawsuit.
On a year-to-date basis, net sales increased 7 percent to $305.7 million
and net earnings increased 14 percent to $29.5 million.
"We are pleased with our year-to-date sales volume and the improvement in
gross profit margin. With the exception of North American Automotive, we
continue to experience good demand for our products in all divisions. In
addition, our backlog of $30 million has grown by $11 million since the
beginning of the year and we have recorded our thirteenth consecutive
quarter of year-over-year earnings growth," said Chief Executive Officer
George Aristides.
GRACO INC. AND SUBSIDIARIES
|
|
Third Quarter (13 weeks) Ended
|
Nine Months (39 weeks) Ended
|
(In Thousands, except per share amounts)
|
Sept. 26,1997
|
Sept. 27, 1996
|
Sept. 26, 1997
|
Sept. 27, 1996
|
NET SALES
|
$101,920
|
$97,680
|
$305,740
|
$284,932
|
NET EARNINGS
|
$12,879
|
$10,157
|
$29,478
|
$25,774
|
NET EARNINGS PER COMMON SHARE
|
$ 0.74
|
$0.58
|
$1.69
|
$1.47
|
Weighted average number of common shares
|
17,455
|
17,410
|
17,482
|
17,518
|
Worldwide, Industrial/Automotive Equipment sales decreased 5 percent from
last year's third quarter, a 1 percent volume decrease and a 4 percent
reduction due to exchange. Contractor Equipment sales increased 22 percent,
and Lubrication Equipment sales increased 3 percent.
Third quarter sales in the Americas increased 12 percent to $69.3 million
>from last year's third quarter, and European sales decreased 15 percent to
$18.5 million, a 6 percent volume decrease and a 9 percent reduction due to
exchange. In Asia Pacific, sales increased 2 percent to $14.1 million, a 7
percent volume increase and a 5 percent reduction due to exchange.
Sales for the nine month period of $305.7 million were up 10 percent on
volume, while reported sales are 7 percent higher net of negative exchange
rates. In the Americas, sales increased 11 percent to $207.8 million.
European sales increased 5 percent to $57.3 million, a volume increase of
13 percent and an 8 percent reduction due to exchange. Sales in Asia
Pacific decreased 4 percent to $40.7 million, a volume increase of 3
percent and a 7 percent reduction due to exchange.
During the third quarter, the gross profit margin increased 2.3 percentage
points from the first half of 1997 due to improved manufacturing
efficiencies, lower costs and higher volume. The operating margin expanded
by 4.6 percentage points from the first half of 1997 due substantially to
disciplined resource management. The effective tax rate for the year
declined from the second quarter to 31 percent, reflecting the previously
unrecognized foreign tax benefits. The year-to-date effective tax rate is
slightly lower than the 1996 rate.
Mr. Aristides said, "We are pleased with Graco's improved profitability in
the third quarter versus the first half of 1997 and despite continued
unfavorable foreign exchange rates, we were able to record another record
quarter. The year-to-date sales growth of 7 percent and our continued
focus on profitability make us optimistic about improved performance for
the duration of the year."
Graco Inc. supplies technology and expertise for the management of fluids
in both industrial and commercial applications. It designs, manufactures
and markets systems and equipment to move, measure, control, dispense and
apply fluid materials. A recognized leader in its specialties,
Minneapolis-based Graco serves customers around the world in the
manufacturing, processing, construction and maintenance industries.
GRACO INC. AND SUBSIDIARIES
|
Consolidated Statements of Earnings
|
|
Third Quarter (13 weeks) Ended
|
Nine Months (39 weeks) Ended
|
(In thousands, except per share amounts)
|
Sept. 26, 1997
|
Sept. 27, 1996
|
Sept. 26, 1997
|
Sept. 27, 1996
|
NET SALES
|
$101,920
|
$97,680
|
$305,740
|
$284,932
|
Cost of products sold
|
50,558
|
47,704
|
156,446
|
140,697
|
GROSS PROFIT
|
51,362
|
49,976
|
149,294
|
144,235
|
Product development
|
4,167
|
4,714
|
13,820
|
13,566
|
Selling
|
21,051
|
21,624
|
66,448
|
62,714
|
General and administrative
|
8,425
|
8,316
|
25,264
|
29,996
|
OPERATING PROFIT
|
17,719
|
15,322
|
43,762
|
37,959
|
Interest expense
|
216
|
155
|
663
|
732
|
Other (income) expense, net
|
124
|
310
|
371
|
(447)
|
EARNINGS BEFORE INCOME TAXES
|
17,379
|
14,857
|
42,728
|
37,674
|
Income taxes
|
4,500
|
4,700
|
13,250
|
11,900
|
NET EARNINGS
|
$12,879
|
$10,157
|
$29,478
|
$25,774
|
NET EARNINGS PER COMMON SHARE
|
$0.74
|
$0.58
|
$1.69
|
$1.47
|
Weighted average number of common shares
|
17,455
|
17,410
|
17,482
|
17,518
|
All figures are subject to audit and adjustment at the end of the fiscal
year.
[ 1st Quarter, 1997 | 2nd Quarter, 1997 | 3rd Quarter, 1997 ]
[ 1996 Quarterly Reports ]
 |
Graco Inc.
P.O. Box 1441
Minneapolis, Minnesota 55440-1441
1-800-367-4023
612 623-6000 | Fax 612 623-6777
|
© 1996-1997 Graco Inc.
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