Minneapolis, Minnesota – Polyurethanes spray foam equipment maker Graco generated sales of $1.646 bn in 2019. This is almost unchanged on the $1.655bn it recorded in 2018.
'While several end markets and segments were soft in 2019, we were pleased with the performance of our contractor business and the EMEA region. Each posted solid organic growth,' said Greg McHale, the company's CEO.
McHale: The first six months of 2020 won't be any easier
Operating earnings across the business fell by 3% to $425m in 2019. In 2018, the company recorded $436m in sales.
Operating earnings as a percentage of sales decreased for both the quarter and the year, said Graco looking across the business. The favourable effects of pricing were more than offset by the adverse impacts of higher material costs, lower sales and factory volume. Product and channel mix, and currency translation added to the difficulties.
McHale added: 'Sales in the fourth quarter reflected trends noted in earlier quarters, with the Asia Pacific region continuing to be particularly challenging.'
Spray foam equipment is counted in the company's industrial business unit. This business unit's sales subsided by 4% between 2018 and 2019, to $747.0m. This compares with $781.0m 2018.
At the same time, adjusted segment earnings in the division declined by 9% to $247.0m in 2019. In the 2019 period, they were $271m .
McHale said that business looks 'challenging… for at least the first half of 2020 in our Industrial segment.'
