Graco Posts Record Third-Quarter Sales as Net Earnings Fall

Graco’s third-quarter sales reached a record $586.4 million in the period ended Sept. 25, while net earnings fell to $121.6 million from a year earlier.

The fluid-handling equipment maker’s sales increased 8% from the year-earlier quarter. Organic sales contributed four percentage points of growth, and acquired operations contributed another four percentage points.

Adjusted diluted earnings were 81 cents per share, up from 77 cents a year earlier. Reported diluted earnings fell to 75 cents per share from 82 cents.

Operating earnings declined 10% to $148.1 million. The year-earlier quarter included a $14.1 million noncash gain tied to a lower estimated value for acquisition-related contingent consideration. Adjusted operating earnings rose 1% to $160.9 million.

Organic orders increased 7% during the quarter and 4% year to date. Graco projected fourth-quarter revenue of $610 million to $640 million.

“While end market conditions remain mixed, we have confidence in the position of our businesses and the opportunities ahead,” Graco President and CEO Mark Sheahan said.