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Graco Inc, America-based manufacturer of fluid-handling systems, has announced its financial results for the third quarter and nine months ended on 29 September 2017, noting that all segments and regions had double-digit percentage sales growth for the quarter and year to date
Sales for the quarter have increased 16 per cent, with increases of 12 per cent in the US, 18 per cent in EMEA and 27 per cent in Asia Pacific region, the report said. Sales for the year to date have increased 12 per cent, with increases of 11 per cent in the US, 10 per cent in EMEA and 18 per cent in Asia Pacific region.
Changes in currency translation rates increased sales by approximately US$3mn for the quarter and decreased sales by approximately US$6mn for the year to date.
Gross profit margin rate decreased by one-half per cent point for the quarter and increased one-half per cent point for the year to date.
According to the report, favourable effects from higher production volume and realised pricing were offset in varying degrees for the quarter and the year to date by the unfavourable impact of product mix.
Total operating expenses for the quarter increased US$9mn compared to the Q3 2016. More than half of the increase was from increases in sales and earnings-based incentives and unallocated corporate operating expense, most of them from market-based stock compensation and pension costs. Year-to-date operating expenses increased US$6mn. The volume and rate-related increases were partially offset by a US$3mn decrease in amortisation expense and the impact of currency translation, said Graco.
Diluted earnings per share include US$0.06 for the quarter and US$0.36 for the year to date from a required change in accounting for stock compensation. The same for the quarter and year to date include US$0.09 related to tax planning benefits that is not expected to recur in 2018.
“For the third consecutive quarter Graco posted double-digit sales growth on an organic, constant currency basis, achieving new company sales records for both the quarter and year to date. This also marks the third consecutive quarter where we have achieved growth in every region and reportable segment,” said Patrick J McHale, president and CEO of Graco.
“Overall Company profitability trends remained solid in the third quarter, similar to the first half results, reflecting strong operating expense leverage on the double-digit sales increase,” McHale added.