Printer Friendly

GRACO REPORTS IMPROVED FIRST QUARTER RESULTS

 MINNEAPOLIS, April 15 /PRNewswire/ -- Graco Inc. (NYSE: GGG) today announced operating results for its first quarter (13 weeks) ended March 26, 1993. Sales for the quarter were $77,811,000, an increase of 7 percent from the first quarter of 1992. Earnings for the period were $2,572,000, or 34 cents per share, compared to earnings before accounting changes of $1,934,000, or 25 cents per share in the 1992 period.
 Results for the first quarter of 1992 have been restated to reflect the company's adoption of Statements of Financial Accounting Standards (SFAS) No. 106, Employers' Accounting for Post retirement Benefits Other Than Pensions, and SFAS 109, Accounting for Income Taxes, effective as of the first day of the 1992 fiscal year. After provision for the cumulative effect of these changes, the company incurred a loss of $3,910,000, or 52 cents per share in the period ended March 27, 1992.
 GRACO INC. AND SUBSIDIARIES
 (In thousands, except per share amounts)
 First Quarter (13 Weeks) Ended
 March 26, 1993 March 27, 1992
 Net sales $77,811 $72,885
 Earnings before changes in
 Accounting principles 2,572 1,934
 Cumulative Effect of Change
 in Accounting Principle
 Relating to Postretirement Benefits -- (6,768)
 Cumulative Effect of Change
 in Accounting Principle Relating
 to Income Taxes -- 924
 Net earnings (loss) $2,572 $(3,910)
 Earnings (loss) per common share:
 Before Changes in Accounting
 Principles $.34 $.25
 Changes in Accounting Principles -- (.77)
 Net Earnings (Loss) $.34 $(.52)
 Company Chairman, President, and Chief Executive Officer David A. Koch said, "Despite difficult economic conditions in Japan and Europe, we are pleased with the growth in sales and earnings and with the reduction in our operating costs which occurred in the first quarter." Sales in the Americas increased 11 percent to $52,343,000 with unit sales increases in both the Contractor Equipment Division and in the Industrial/Automotive Equipment Division for the quarter. Sales in the Pacific increased by 6 percent to $11,986,000 as the decline in sales in Japan was more than offset by increases in sales to other markets in the region.
 Sales in Europe declined 7 percent to $13,482,000 as the result of weaker European currencies and lower, recession related volume.
 Gross profit margins declined during the first quarter 1993 to 47 percent of sales from 51 percent for the same period in 1992. This decline is the result of foreign currency sales being translated at generally less favorable exchange rates, low automotive systems margins, and unfavorable manufacturing variances. Operating expenses declined 4 percent in the 1993 period from the same period last year due to cost reduction actions undertaken in late 1992.
 Backlog at March 26, 1993 was $23 million, an increase of $5 million from $18 million on Dec. 25, 1992, but down from the $32 million on March 27, 1992.
 Koch said, "We expect that a continuing recovery in the business environment in the Americas and strong growth in the Pacific (excluding Japan) will permit us to achieve sales and earnings growth despite slow economies in Japan and Europe in 1993. In addition, we anticipate that gross profit margins will improve from the first quarter level for the balance of 1993, adding to our expectations for further profitability improvements."
 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 apply fluid materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries.
 GRACO INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (In thousands, except per share amounts)
 First Quarter (13 Weeks) Ended
 March 26, 1993 March 27, 1992
 Net sales $77,811 $72,885
 Cost of products sold 41,602 35,989
 Gross profit 36,209 36,896
 Product development 2,777 2,630
 Selling 19,440 20,267
 General and administrative 9,150 9,890
 Operating profit 4,842 4,109
 Interest expense 606 752
 Other (income) expense, net 114 73
 Earnings before income taxes 4,122 3,284
 Income taxes 1,550 1,350
 Earnings before changes
 in accounting principle 2,572 1,934
 Cumulative effect of
 change in accounting principle
 relating to postretirement
 benefits -- (6,768)
 Cumulative effect of change
 in accounting principle
 relating to income taxes -- 924
 Net earnings (loss) $2,572 $(3,910)
 Earnings (loss) per common share:
 Before changes in accounting
 principles $.34 $.25
 Cumulative effect of change
 in accounting principle
 relating to postretirement
 benefits -- (.90)
 Cumulative effect of change
 in accounting principle
 relating to income taxes -- .13
 Net earnings (loss) $.34 $(.52)
 Weighted average number
 of common shares 7,567 7,540
 All figures are subject to audit and adjustment at the end of the fiscal year.
 -0- 4/15/93
 /CONTACT: Roger L. King, 612-623-6700, or David L. Schoeneck, 612-623-6679, both of Graco/
 (GGG)


CO: Graco, Inc. ST: Minnesota IN: SU: ERN

AL -- MN009 -- 6144 04/15/93 10:46 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 15, 1993
Words:836
Previous Article:TECO ENERGY'S EARNINGS UP 37 PERCENT FOR FIRST QUARTER
Next Article:BOSTON SCIENTIFIC CORPORATION APPOINTS PAUL W. SANDMAN SENIOR VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
Topics:


Related Articles
GRACO REPORTS 1991 OPERATING RESULTS
GRACO REPORTS IMPROVED FIRST QUARTER OPERATING RESULTS
GRACO REELECTS LACEY, OLSETH AND THOMPSON TO BOARD OF DIRECTORS
GRACO REPORTS IMPROVED EARNINGS
GRACO REPORTS SLOWING REVENUE GROWTH; REDUCED EARNINGS EXPECTATIONS
WEAK INTERNATIONAL ECONOMIES LOWER GRACO SECOND QUARTER SALES
GRACO REPORTS IMPROVED SALES AND OPERATING PROFIT
GRACO DECLARES 3-FOR-2 STOCK SPLIT; DECLARES SPECIAL $2.70 PER SHARE (POST-SPLIT) DIVIDEND AND INCREASES REGULAR QUARTERLY DIVIDEND 10%
GRACO REPORTS RECORD FIRST QUARTER SALES UP 18 PERCENT, NET EARNINGS INCREASE 196 PERCENT
GRACO REPORTS FIRST QUARTER RESULTS SALES DECLINE 6 PERCENT, NET EARNINGS INCREASE 3 PERCENT ANNOUNCES MAJOR AUTOMOTIVE SYSTEM CONTRACT

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters