Graco Inc. recently announced results for the quarter and six months ended June 29, 2012. Sales for the quarter were $268.2 million, a 14-percent increase from $234.7 million in the year-ago period, including a $31 million gain from the addition of Powder Finishing operations. Year-to-date sales increased 11 percent to $502.3 million from $452.3 million in the first half of 2011.
The company completed the purchase of the finishing businesses of Illinois Tool Works on April 2, including powder and liquid equipment operations.
"Across segments and products, business in Europe was soft in the second quarter," said Patrick McHale, Graco's president and CEO. “On a constant currency basis, European Industrial and Lubrication saw modest growth while our Contractor business declined. The developing markets in Eastern Europe performed well, but that growth was more than offset by negative economic conditions in Western Europe and currency translation. Asia Pacific was also challenging in the second quarter, with significant variability in results between products and countries. Performance in North America was a bright spot, with solid growth in all segments. Although the macro environment was challenging, I am pleased with the efforts of the worldwide Graco team to push ahead with our key long-term growth initiatives.”
On April 2, 2012, the company completed the purchase of the finishing businesses of Illinois Tool Works Inc., first announced in April 2011. The acquisition includes Powder Finishing and Liquid Finishing equipment operations, technologies and brands. Results of the Powder Finishing business have been included in the Industrial segment since the date of acquisition.
"We are optimistic that all of our business segments will show organic growth in the second half of 2012 on a constant currency basis, despite headwinds from Western Europe, China and India," McHale said. "We expect the demand environment in the Americas to remain favorable in all business segments in the second half."
Minneapolis-based Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid materials.