Graco profits up 12% in 2018

Minneapolis, Minnesota — Graco, which manufactures polyurethane spray machinery equipment, reported a 12% rise in net sales in 2018 to $1.6bn.

Operating earnings were $436m in 2018, compared with $379 m in 2017. This is a rise of 15% year on year.

Sales in the firm’s industrial segment, which includes spray foam machinery, were $781 m in 2018. This is 13% up on the $ 692 m recorded by the segment in 2017. Operating earnings in the segment at $271 m were up about 14% on the divisions’ $238 m sales in 2017.

The company said that its industrial segment had benefited from $35 m over the year in sales from purchased businesses. Favourable currency rates and higher volumes in the segment more than offset the effects of lower operating margins in acquired operations in 2018, it said.

‘The business is performing well and demand levels worldwide remain solid,' said CEP Patrick McHale. 'As a result, we are initiating a revenue growth outlook for the full-year 2019 of mid-single-digits.'