Wed, Oct 23, 8:16 PM (269 days ago)
Graco Inc. (GGG) reported a decline in its financial performance for the third quarter ended September 27, 2024, with net sales of $519.2 million, down 4% from $539.7 million in the prior year. Year-to-date sales also decreased by 4% to $1,564.6 million. Operating earnings fell 11% to $145.7 million, primarily due to lower sales volume and increased operating expenses. Net earnings decreased by 8% to $122.2 million, reflecting a decline in operating earnings, although offset by reduced interest expenses and increased interest income. The gross profit margin improved slightly to 53.2%, aided by favorable pricing dynamics. Cash flow from operating activities totaled $436 million, down from $491 million in the same period last year, impacted by lower net earnings and increased inventory levels. Graco maintains strong liquidity with $764 million in cash and $775 million available under credit facilities. The company anticipates a low single-digit decline in organic revenue for the full year, citing ongoing demand challenges in its end markets. The completion of the acquisition of Corob S.p.A. is expected in Q4 2024, aimed at enhancing its product offerings.