Sales flat operating income down slightly at Graco in H1

Minneapolis, Minnesota — Graco, which manufactures polyurethane spray machinery, had total sales of $833m the first half of 2019. This is almost identical with the first half of 2018.

Operating Earnings across the business fell 4% and hit $217m the first half of 2019.

Patrick McHale, Graco's CEO said that the numbers were down because of

'softer underlying demand in end markets, particularly in Asia Pacific. With the exception of the Contractor segment, revenue performance… was below expectations.'

Polyurethane machinery is located in the company's industrial business. Here, sales subsided by 12.44% between the first half of 2018 and 2019. They reached $338m in the first half of 2019. This compares with $386m the first half 2018

At the same time, operating earnings in the division declined by 4.41%. It hit $130m the first half of 2019. This compares with $136m the 2018 period.

Although the business grew in the Americas and EMEA, this was more than offset by falls in the Asia Pacific region. The operating margin fell because currency effects, higher material costs and lower volumes were greater than price increases.

'Given the slow start to the year, we are lowering our full-year 2019 worldwide outlook to low single-digit organic sales growth on a constant currency basis,' stated the Graco CEO.