Minneapolis, Minnesota – Spray foam machinery sales at Graco led the way to record first quarter sales, as the company moves to increase prices to match rising input costs.
Spray machinery sales drive growth at Graco
The company's industrial business, which includes spray foam equipment, generated sales that were up 11.4% between the first quarter of 2021 and the first quarter of 2022, at $144.7m. This compares with $129.9m in the equivalent period in 2021.
Operating earnings in the division rose by 24.1% to $52.6m in the first quarter of 2022. This compares with $42m in the equivalent period in 2021.
'The industrial and process segments grew double digits on an organic, constant currency basis in every reportable region during the quarter, driving record first quarter sales,' said Mark Sheahan, Graco's CEO.
But he warned that customers were going to face rising prices because his factories were working on contracts agreed at 2021 prices in the quarter, and this was going to change. 'Our 2022 pricing actions are offsetting current cost pressures on a dollar basis and should favourably impact profitability for the balance of the year,' he said.
Looking across the business, Graco, had total sales of $494.3m in the first quarter of 2022, up 8.85% on the same period last year.
Operating earnings across the business were almost unchanged at $128.4m in the first quarter of 2022. Higher input costs in the quarter hit the profitability numbers.
The company's order backlog is growing, though. This, it said, was because of supply chain and logistical challenges that continue to limit product shipments.