Graco Inc. (NYSE: GGG) fell in price Tuesday after reporting Q4 2017 financial results.
The Minneapolis-based company reported Monday fourth-quarter net sales of $374.9 million, a 7% improvement on the $349.1-million figure produced in the prior-year quarter. Net earnings came in at $36.4 million, in contrast to a loss of $104.2 million in the prior-year quarter.
CEO Patrick McHale said, “Outstanding execution throughout 2017 by Graco’s employees, suppliers, channel partners and end users drove record quarterly sales in each quarter of 2017 and double-digit growth for the year,”
"Our investments in product development, new markets and geographic expansion are producing nice returns. Contractor segment growth was particularly strong in the fourth quarter, which resulted in rebate and growth incentives that pressured gross and operating margins for the segment as well as an unfavorable mix for the overall Company in the quarter.
"The tiers for these incentives are reset at the beginning of each year based on sales levels achieved in the prior year and have a history of driving growth, so we are happy to pay for these programs."
Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials
The shares tumbled $1.72, or 3.6%, to $46.60, as morning became afternoon on Tuesday.
