Minneapolis, Minnesota — Graco, whose business includes industrial spray foam machinery, had 2020 sales totalling $1.65bn. This represents a similar level of sales to 2019.
Although operating earnings across the business fell by 7.7% $392m in the year, CEO Patrick McHale pointed to a recovery in the fourth quarter.
McHale: Sprayfoam improved in the final quarter
'While several end markets remain soft, we saw improvements in our spray foam, electronics, battery and systems end markets during the quarter,' he said. 'Improvements in these markets coupled with continued robust sales in our professional paint and home centre channels resulted in record quarterly sales.'
Over the course of 2020, the company's industrial business, which includes sprayfoam equipment, sales fell to $678m in 2020. This a decline of 9.3% from 2019.
Operating earnings across in the division fell less sharply, by 8.3%, to $227m in 2020.
The industrial business benefitted from recovery in the Asia Pacific region, which went some way to offsetting the effects of coronavirus lockdowns earlier in the year around the world. Also in the final quarter, Graco said the division had improved volumes, reduced costs and managed prices. This led to a 6% increase in margin in the final quarter of the year.
McHale said the expected the first half of 2021 to feature 'challenging market conditions' as many of his company's end markets remain in lockdown.
