[ 1st Quarter, 1996 | 2nd Quarter, 1996 | 3rd Quarter, 1996 |
4th Quarter, 1996 ]
FOR IMMEDIATE RELEASE: Monday, April 15, 1996
FOR FURTHER INFORMATION: David M. Lowe (612) 623-6789
GRACO REPORTS FIRST QUARTER RESULTS
SALES DECLINE 6 PERCENT, NET EARNINGS INCREASE 3 PERCENT
ANNOUNCES MAJOR AUTOMOTIVE SYSTEM CONTRACT
MINNEAPOLIS, MN (April 15) Graco Inc. (NYSE: GGG) today announced first quarter net sales of $90.2 million, a 6 percent decrease from the same period last year. Net earnings of $5.6 million, or 32 cents per share, a first quarter record, were up 3 percent over net earnings of $5.4 million, or 31 cents per share in the first quarter of 1995. The Company also announced today that it was recently awarded a contract to install a major automotive paint circulating system for Toyota Motor Corporation in Cambridge, Ontario.
Harsh winter conditions in North America and economic softness in many markets contributed to a slow start in the first two months of the quarter. Sales and incoming orders, however, picked up considerably in March and added nicely to our results. Our long-term strategic focus, including careful cost control, has helped Graco report record first quarter earnings, and our seventh consecutive quarter of year-over-year earnings growthî said President and Chief Executive Officer George Aristides.
GRACO INC. AND SUBSIDIARIES
|
| First Quarter (13 weeks) Ended |
(In thousands, except per share amounts) | Mar. 29, 1996 | Mar. 31, 1995 |
NET SALES | $90,153 | $95,527 |
NET EARNINGS | $5,585 | $5,436 |
NET EARNINGS PER COMMON SHARE | $0.32 | $0.31 |
Weighted Average Number of Common Shares | 17,553 | 17,249 |
Worldwide, Industrial/Automotive Equipment sales declined 10 percent from last year's first quarter which included some large systems installations, Contractor Equipment sales declined 1 percent, and Lubrication Equipment sales increased 3 percent. While our sales for the quarter were soft, we are encouraged by recent positive trends. For example, incoming orders for the quarter exceeded sales by $10 million, increasing our backlog to $30 million, said Aristides.
First quarter sales in the Americas decreased 5 percent to $61.8 million, while European sales declined 2 percent to $15.9 million (a 6 percent volume decrease, and a 4 percent gain due to exchange rates). In the Asia Pacific region, sales decreased 12 percent to $12.5 million (a 10 percent volume decrease, and a loss of 2 percent due to exchange rates). Incoming orders exceeded sales in all regions.
Graco capitalized on pricing improvements and product mix to increase its gross profit margin rate one percentage point to 50 percent. The effective tax rate for the quarter declined to 33 percent, reflecting lower effective tax rates on foreign earnings.
First quarter operating expenses include the expected costs for consolidating Graco's Franklin Park, Illinois operations. By relocating Franklin Park's industrial systems applications engineering and sales expertise to Minneapolis, the Company will be well-suited to leverage its systems skills throughout Graco's entire technical group.
Graco is also pleased to announce that it was recently awarded an $11 million contract to install a paint circulating system for Toyota Motor Corporation in Cambridge, Ontario during the second half of 1996. Excluding subcontracted work, Graco will recognize approximately $4 million of sales from this project. This is a significant order for our Automotive Equipment Division, and is representative of the enhanced activity we are beginning to see in the automotive industry. We are delighted that Graco was able to provide Toyota with the solutions required to win this business, said Aristides.
Graco is also announcing that it has received $1.5 million for settlement of a lawsuit involving an escrow deposit dating back to 1986. The settlement, reached in early April, covers the original escrow amount, plus interest and legal fees. The settlement will be reflected in the Company's second quarter earnings, scheduled for release in mid-July.
Mr. Aristides said, Despite challenges in the first quarter of 1996, we remain cautiously optimistic about improved financial performance for the year. The combination of new product introductions, expanded globalization activities, world-class manufacturing capabilities, close expense controls and a strong financial position gives us confidence about Gracoís long-term prospects for sustained growth.
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 29, 1996 | March 31, 1995 |
NET SALES | $90,153 | $95,527 |
Cost of products sold | 45,316 | 49,000 |
GROSS PROFIT | 44,837 | 46,527 |
Product development | 4,229 | 3,921 |
Selling | 19,850 | 21,690 |
General and administrative | 11,675 | 11,100O |
PERATING PROFIT | 9,083 | 9,816 |
Interest expense | 232 | 684 |
Other expense, net... | 566 | 396 |
EARNINGS BEFORE INCOME TAXES | 8,285 | 8,736 |
Income taxes... | 2,700 | 3,300 |
NET EARNINGS | $5,585 | $5,436 |
NET EARNINGS PER COMMON SHARE | $0.32 | $0.31 |
Weighted Average Number of Common Shares | 17,553 | 17,249 |
All figures are subject to audit and adjustment at the end of the fiscal year.
[ 1st Quarter, 1996 | 2nd Quarter, 1996 | 3rd Quarter, 1996 |
4th Quarter, 1996 ]
FOR IMMEDIATE RELEASE: Tuesday, July 16, 1996
FOR FURTHER INFORMATION: David M. Lowe (612) 623-6789
GRACO REPORTS SECOND QUARTER RESULTS
SALES DECLINE 6 PERCENT, NET EARNINGS INCREASE 18 PERCENT
THE HIGHEST QUARTERLY EARNINGS IN COMPANY HISTORY
MINNEAPOLIS, MN (July 16) - Graco Inc. (NYSE: GGG) today announced second quarter net sales of $97.1 million, a 6 percent decrease from the same period last year. Net earnings of $10.0 million, or 57 cents per share, the highest quarterly earnings in Company history, were up 18 percent over net earnings of $8.5 million, or 49 cents per share in the second quarter of 1995.
"Graco's strong bottom line performance continued in the second quarter despite continued economic softness in many of our markets. While investments in product development reached record levels, improvements in gross profit margin and our careful attention to costs have helped Graco report record quarterly earnings. This is our eighth consecutive quarter of year-over-year earnings growth" said President and 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 28, 1996 | June 30, 1995 | June 28, 1996 | June 30, 1995 |
NET SALES | $97,099 | $103,402 | $187,252 | $198,929 |
NET EARNINGS | $10,032 | $8,532 | $15,617 | $13,968 |
NET EARNINGS PER COMMON SHARE | $0.57 | $0.49 | $0.89 | $0.80 |
Weighted average number of common shares | 17,588 | 17,454 | 17,571 | 17,352 |
Worldwide, Industrial/Automotive Equipment sales declined 11 percent from last year's second quarter, Contractor Equipment sales declined 1 percent, and Lubrication Equipment sales increased 9 percent. "While the contractor market has been depressed during the last twelve months and international markets, particularly Germany, are slow, we believe increased levels of automotive activity should provide opportunities for top line growth in the second half of the year. Our backlog of $29 million is slightly higher than the level of a year ago and has grown $9 million since the begining of 1996," said Aristides.
Second quarter sales in the Americas were flat at $64.0 million, while European sales declined 19 percent to $17.0 million (a 16 percent volume decrease, and a 3 percent loss due to exchange rates). In Asia Pacific, sales decreased 13 percent from last year's second quarter, which included a large automotive system installation, to $16.1 million (a 3 percent volume decrease, and a 10 percent loss due to exchange rates).
Manufacturing efficiencies, favorable product sourcing in Japan, pricing and product mix helped Graco improve its gross profit margin one percentage point to 51 percent. The effective tax rate for the quarter declined to 31 percent, reflecting lower effective tax rates on foreign earnings.
As previously announced, second quarter earnings before income taxes include $1.5 million received by the Company in settlement of a lawsuit involving an escrow deposit dating back to 1986. In addition, at the end of the second quarter, the company had acquired approximately 180,000 shares during 1996 under its ongoing share repurchase plan.
Sales for the six months were $187.2 million, a 6 percent decrease from the same period last year. In the Americas, sales decreased 2 percent to $125.8 million. European sales declined 12 percent to $32.8 million (a volume decrease of 12 percent and no gain or loss due to exchange rates). Sales in Asia Pacific decreased 12 percent to $28.6 million (a 6 percent volume decrease, and a 6 percent loss due to exchange rates).
Mr. Aristides said, "Despite continuing sales softness, we are cautiously optimistic about improved financial performance for the year. Graco is committed to pursuing what we believe to be the fundamental elements for growing our business. Our focus on new product introductions, globalization activities, world-class manufacturing capabilities and close expense controls, coupled with our strong financial position, gives us confidence about Graco's long-term prospects for sustained growth."
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 | $97,099 | $103,402 | $187,252 | $198,929 |
Cost of products sold | 47,677 | 51,987 | 92,993 | 100,987 |
GROSS PROFIT | 49,422 | 51,415 | 94,259 | 97,942 |
Product development | 4,623 | 3,941 | 8,852 | 7,862 |
Selling | 21,240 | 22,068 | 41,090 | 43,758 |
General and administrative | 10,005 | 10,982 | 21,680 | 22,082 |
OPERATING PROFIT | 13,554 | 14,424 | 22,637 | 24,240 |
Interest expense | 345 | 745 | 577 | 1,429 |
Other (income) expense, net | (1,323) | (53) | (757) | 343 |
EARNINGS BEFORE INCOME TAXES | 14,532 | 13,732 | 22,817 | 22,468 |
Income taxes | 4,500 | 5,200 | 7,200 | 8,500 |
NET EARNINGS | $10,032 | $8,532 | $15,617 | $13,968 |
NET EARNINGS PER COMMON SHARE | $0.57 | $0.49 | $0.89 | $.80 |
Weighted average number of common shares | 17,588 | 17,454 | 17,571 | 17,352 |
All figures are subject to audit and adjustment at the end of the fiscal year.
[ 1st Quarter, 1996 | 2nd Quarter, 1996 | 3rd Quarter, 1996 |
4th Quarter, 1996 ]
FOR IMMEDIATE RELEASE: Thursday, October 10, 1996
FOR FURTHER INFORMATION: David M. Lowe (612) 623-6789
GRACO REPORTS THIRD QUARTER RESULTS
SALES INCREASE 3 PERCENT TO NEARLY $98 MILLION, NET EARNINGS INCREASE 55 PERCENT TO $10.2 MILLION
RECORD EARNINGS
MINNEAPOLIS, MN (October 10) - Graco Inc. (NYSE: GGG) today announced third quarter net sales of $97.7 million, a 3 percent increase from the same period last year. Record net earnings of $10.2 million, or 58 cents per share, were up 55 percent over net earnings of $6.6 million, or 37 cents per share in the third quarter of 1995.
"Graco's third quarter is the result of corporate initiatives we have been pursuing for several quarters. Our sales growth and earnings improvement have been achieved in a soft European and Asia Pacific economic environment while we are investing record amounts in marketing, manufacturing and product development. This is our ninth consecutive quarter of year-over-year earnings growth," said President and 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. 27, 1996 | Sept. 29, 1995 | Sept. 27, 1996 | Sept. 29, 1995 |
NET SALES | $97,680 | $94,797 | $284,932 | $293,726 |
NET EARNINGS | $10,157 | $6,569 | $25,774 | $20,537 |
NET EARNINGS PER COMMON SHARE | $0.58 | $0.37 | $1.47 | $1.18 |
Weighted average number of common shares | 17,410 | 17,524 | 17,518 | 17,409 |
Worldwide, Industrial/Automotive Equipment sales increased 3 percent from last year's third quarter, Contractor Equipment sales increased 4 percent, and Lubrication Equipment sales increased 2 percent. "While many of the markets we serve were slow in the first half of 1996, we are encouraged by the somewhat improved levels of business activity during the third quarter. The month of September was particularly strong and contributed nicely to our results. Graco's backlog of $33 million is nearly $10 million higher than the level of a year ago and the current rate of incoming orders provides us with reason to be cautiously optimistic about a solid fourth quarter," said Aristides.
Third quarter sales in the Americas improved 8 percent to $62.1 million, while European sales were flat at $21.7 million (a 4 percent volume increase, offsetting a 4 percent loss due to exchange rates). In Asia Pacific, sales decreased 12 percent from last year's third quarter to $13.9 million (a 2 percent volume decrease, and a 10 percent loss due to exchange rates).
During the third quarter the gross profit margin increased two percentage points to 51 percent due to improved pricing in the Americas, manufacturing volume and efficiencies. The operating margin expanded by 4.6 percentage points due substantially to close general and administrative expense control. The effective tax rate was 32 percent, which is essentially the same as the second quarter of 1996 and the third quarter of 1995.
Sales for the nine months were $284.9 million, a 3 percent decrease from the same period last year. In the Americas, sales increased 1 percent to $187.9 million. European sales decreased 7 percent to $54.6 million (a volume decrease of 6 percent and a 1 percent loss due to exchange rates). Sales in Asia Pacific decreased 12 percent to $42.4 million (a 5 percent volume decrease, and a 7 percent loss due to exchange rates).
Graco also announced that it intends to move into the David A. Koch Center, its new world-class manufacturing and distribution facility in Rogers, Minnesota, in December. The project is on budget and is being paid for from operating cash flow. In addition, the Company has acquired approximately 350,000 shares during 1996 under its ongoing share repurchase plan.
Mr. Aristides said, "Our earnings momentum and modestly improved sales activity across all divisions give us added confidence that our investments in new products, technology, globalization, and world-class manufacturing are having a significant impact on Graco's long-term ability to grow profitably."
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. 27, 1996 | Sept. 29, 1995 | Sept. 27, 1996 | Sept. 29 1995 |
NET SALES | $97,680 | $94,797 | $284,932 | $293,726 |
Cost of products sold | 47,704 | 48,510 | 140,697 | 149,497 |
GROSS PROFIT | 49,976 | 46,287 | 144,235 | 144,229 |
Product development | 4,714 | 3,557 | 13,566 | 11,419 |
Selling | 21,624 | 21,982 | 62,714 | 65,740 |
General and administrative | 8,316 | 10,263 | 29,996 | 32,345 |
OPERATING PROFIT | 15,322 | 10,485 | 37,959 | 34,725 |
Interest expense | 155 | 596 | 732 | 2,025 |
Other (income) expense, net | 310 | 220 | (447) | 563 |
EARNINGS BEFORE INCOME TAXES | 14,857 | 9,669 | 37,674 | 32,137 |
Income taxes | 4,700 | 3,100 | 11,900 | 11,600 |
NET EARNINGS | $10,157 | $6,569 | $25,774 | $20,537 |
NET EARNINGS PER COMMON SHARE | $0.58 | $0.37 | $1.47 | $1.18 |
Weighted average number of common shares | 17,410 | 17,524 | 17,518 | 17,409 |
All figures are subject to audit and adjustment at the end of the fiscal year.
[ 1st Quarter, 1996 | 2nd Quarter, 1996 | 3rd Quarter, 1996 |
4th Quarter, 1996 ]
FOR IMMEDIATE RELEASE: Thursday, January 20, 1997
FOR FURTHER INFORMATION: Mark W. Sheahan (612) 623-6656
GRACO REPORTS RECORD RESULTS IN 1996
SALES INCREASE 1 PERCENT FROM 1995 TO $392 MILLION
NET EARNINGS OF $36 MILLION INCREASED 31 PERCENT
MINNEAPOLIS, MN (January 20) - Graco Inc. (NYSE: GGG) today announced 1996 net sales of $392 million, a one percent increase from 1995. Record net earnings of $36.2 million, or $2.07 per share, represent an increase of 31 percent from $27.7 million, or $1.59 per share in 1995. Fourth quarter sales were a record $107 million, 15 percent above the prior year, and fourth quarter record net earnings of $10.4 million, or 60 cents per share, increased 45 percent.
"Our performance in the second half of 1996 was good as we saw improvement in both revenue and profitability when compared to both the first half of this year and the last two quarters of 1995. We are especially pleased with net sales in the second half of 1996 which were 9 percent higher than the same period in 1995," said President and Chief Executive Officer George Aristides.
Net sales in the Americas of $253 million in 1996 increased by 6 percent when compared to 1995. Due primarily to slow economic conditions, European sales declined 5 percent to $79 million (a 3 percent volume decrease and a 2 percent decline due to exchange rates). A weak Japanese economy contributed to a 7 percent decline in Asia Pacific sales which were $60 million (volume was flat and the decline was due to exchange rate changes).
GRACO INC. AND SUBSIDIARIES |
| Fourth Quarter (13 weeks) Ended | Twelve Months (52 weeks) Ended |
(In Thousands, except per share amounts) | Dec. 27, 1996 | Dec. 29, 1995 | Dec. 27, 1996 | Dec. 29, 1995 |
NET SALES | $106,824 | $92,588 | $391,756 | $386,314 |
NET EARNINGS | $10,395 | $7,169 | $36,169 | $27,706 |
NET EARNINGS PER COMMON SHARE | $0.60 | $0.41 | $2.07 | $1.59 |
Weighted average number of common shares | 17,384 | 17,453 | 17,484 | 17,420 |
Net sales for the fourth quarter were $107 million, an increase of 15 percent from last year's fourth quarter sales of $93 million. Backlog at December 27, 1996 was $19 million, compared to $20 million at the end of 1995, and $33 million at the end of the third quarter of 1996. The reduction in backlog from the third quarter is primarily due to the shipment of several large engineered systems.
For the fourth quarter, worldwide Contractor Equipment sales increased 24 percent, reflecting positive sales trends compared to the slow Contractor market in the last quarter of 1995. Industrial/Automotive Equipment sales improved 14 percent reflecting good activity in the U.S. industrial market. Lubrication Equipment sales were up 3 percent. "Graco's improved sales and profitability give us confidence that our corporate strategies, including aggressive investments in new products, engineering, and marketing, are paying off," said Aristides.
In the Americas, fourth quarter sales increased 23 percent to $65 million. Sales in Europe were up 2 percent to $24 million (a 5 percent volume increase offset by a 3 percent decline due to exchange rates). In the Asia Pacific region sales increased 9 percent to $18 million (a 15 percent volume increase, and a 6 percent decline due to exchange rates).
During the fourth quarter the Company's gross profit margin declined to 48 percent, due primarily to the increased proportion of large engineered systems shipments. Operating margin expanded by 2.8 percentage points as the result of higher sales. Operating profit for the quarter increased 44 percent to $15 million. Net earnings were $10.4 million or 60 cents per share, up from net earnings of $7.2 million or 41 cents per share in the fourth quarter of 1995. The effective tax rate of 31 percent is 6 percentage points lower than the rate for the same period in 1995, primarily as the result of lower effective tax rates on foreign earnings.
Common stock repurchases under the Company's announced share repurchase program were approximately 400,000 shares in 1996.
"While 1996 started out slowly, due to factors including harsh winter conditions in North America, the second half of the year was strong. Graco is going into 1997 with exciting new product introductions and an emphasis on globalization activities. Although we remain cautious about economic conditions in our markets, the overall outlook for 1997 is positive." 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 |
| Fourth Quarter (13 weeks) Ended | Twelve Months (52 weeks) Ended |
(In thousands, except per share amounts) | Dec. 27, 1996 | Dec. 29, 1995 | Dec. 27, 1996 | Dec. 29 1995 |
NET SALES | $106,824 | $92,588 | $391,756 | $386,314 |
Cost of products sold | 55,078 | 47,190 | 195,775 | 196,687 |
GROSS PROFIT | 51,746 | 45,398 | 195,981 | 189,627 |
Product development | 4,343 | 4,296 | 17,909 | 15,715 |
Selling | 22,567 | 20,894 | 85,281 | 86,634 |
General and administrative | 9,738 | 9,699 | 39,734 | 42,044 |
OPERATING PROFIT | 15,098 | 10,509 | 53,057 | 45,234 |
Interest expense | 99 | 310 | 831 | 2,335 |
Other (income) expense, net | (96) | (1,220) | (543) | (657) |
EARNINGS BEFORE INCOME TAXES | 15,095 | 11,419 | 52,769 | 43,556 |
Income taxes | 4,700 | 4,250 | 16,600 | 15,850 |
NET EARNINGS | $10,395 | $7,169 | $36,169 | $27,706 |
NET EARNINGS PER COMMON SHARE | $0.60 | $0.41 | $2.07 | $1.59 |
Weighted Average Number of common shares | 17,384 | 17,453 | 17,484 | 17,420 |
All figures are subject to audit and adjustment at the end of the fiscal year.
[ 1997 Quarterly Reports ]
[ 1st Quarter, 1996 | 2nd Quarter, 1996 | 3rd Quarter, 1996 |
4th Quarter, 1996 ]
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Graco Inc.
P.O. Box 1441
Minneapolis, Minnesota 55440-1441
1-800-367-4023
612 623-6000 | Fax 612 623-6777
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© 1996-1997 Graco Inc.
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