By John Osborne, UT staff
Minneapolis, Minnesota-Double-digit gains with strong growth in the protective coatings, foam and process product categories helped boost Graco Inc.'s third quarter results.
The company, which has a major unit making equipment for polyurethane dispensing, has announced third quarter net earnings of $37.4 million on net sales of $202.2 million-increases over the prior year of 21 percent and 14 percent, respectively.
"We are pleased to report another quarter of record performance in sales, earnings and earnings per share," said David Roberts. chairman, president and chief executive officer, in the results statement. "When compared to the same periods in the prior year, this represents our eighteenth consecutive quarter of sales growth and it's the thirteenth consecutive quarter where all three segments have reported higher sales."
He added that Graco's contractor business has also grown, "despite a weaker new residential construction market in the United States." Roberts said that international expansion efforts, "combined with robust commercial construction and strong acceptance of new products in the Americas" account for this year's results.
"In Lubrication, sales growth is coming from higher demand for vehicle service products and the addition of Lubriquip", explained Mr Roberts. While the short cycle nature of our business provides us with a limited view of future product demand, we remain confident that we can continue to drive higher sales and earnings for the remainder of the year."
Graco included in its Q3 operating expenses $1.7 million of closing costs and inventory charges related to consolidation of the Gusmer polyurethane equipment activities acquired last year. In this context, Graco recently reported on progress in moving the GusmerDecker business, which makes reaction injection moulding (RIM) equipment, from Lakewood, New Jersey to North Canton, Ohio, as part of this reorganization. The move will be completed during November 2006, sa id Graco. "The more centralised location will better serve North American RIM and automotive customers," said a Graco statement."