Graco's Healthy Industrial Sales Boost Q4, Year-End Profits

Sales increased across all Graco's reportable segments and regions, though the company noted movement in foreign currencies could hamper earnings in 2015.

Minneapolis-based Graco Inc. on Monday reported fourth-quarter net earnings of $49 million, a 10 percent rise from $44.7 million in Q4 2013.

Revenues for the quarter were $306 million, a 13 percent rise year-over-year.

The company said sales increased in all reportable segments and regions.

Fourth quarter Industrial sales increased 13 percent to $195 million, comprising 30 percent of total net sales. Contractor sales increased 9 percent, and lubrication sales went up 16 percent.

For the year, net earnings increased 7 percent to $225.6 million as net sales went up 11 percent to $1.22 billion. Industrial sales increased 12 percent to $727.4 million and comprised 31 percent of total 2014 net sales. Contractor sales increased 10 percent, and Lubrication sales increased 8 percent.

"As we enter 2015, we expect demand levels to continue to be supportive of growth in every reportable segment and geography, although currency fluctuations and ongoing geopolitical instability remain a concern," said Patrick McHale, Graco CEO. "At current exchange rates, unfavorable movement in foreign currencies would be a headwind of approximately 4 percent on sales and 10 percent on earnings in 2015."

Graco designs, makes, and markets equipment to pump, meter, mix, and dispense various fluids and coatings.

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