Graco is enjoying a very successful period of growth and expansion, judging by recent news released by the company. Company officials announced in a recent conference call that profits rose in the second quarter of this year, up four percent to $335 million.
A leading manufacturer of industrial spray, valve and pump equipment, Graco is one of the most recognizable brands in the industry. It has become a leading choice among building professionals, due in large part to the trust the company has worked so hard to earn. In addition, the brand has also developed a reputation as a maker of durable, high-quality spray foam equipment that contractors feel confident about relying upon for critical parts of their jobs. That reputation is obviously paying off in a big way for the company.
It has been a busy year for Graco, with lots of activity on many different fronts. In April, the company sold a liquid finishing business that it acquired a few years ago. That resulted in a big infusion of profits into the company bottom line. Following that move, profits soared from $66.2 million, or $1.07 a share, to $173 million, or $2.90 a share, due in large part to the sale and related investment income.
Graco CEO Patrick J. McHale cited areas of positive growth and advancement for the company, such as increased growth and expansion in Europe and a large segment of Asia. This helped offset slowdowns in other geographic regions across the globe. It also helped to counteract the impact of changes in the currency translation rates that represented a reduction in sales and net earnings of about $30 million and $10 million, respectively, for year to date.
McHale said the Americas represent the company’s strongest area of growth, as evidenced by the double-digit rate of growth in that region. That’s a trend that seems likely to continue, he said. “We are optimistic Contractor Americas will perform in the second half.” (The company breaks its operations down into three divisions: Industrial, Process and Contractor. The Contractor segment seems to be a source of consistent growth and success for the brand.)
Financial reports aside, it seems obvious to anyone who has been keeping an eye on the company recently that lots of exciting things have been happening. The company continues to place an emphasis on innovation and improving its current product line while also introducing new offerings. Earlier this summer, the company launched its new Reactor 2 line of hydraulic sprayers, which have already been getting a lot of attention. That launch came on the heels of the release in April of a new series of small and midsized electric airless sprayers.
Graco seems to be wisely seizing an opportunity presented by a shift in priorities among property owners in the U.S. and elsewhere today. There’s a major push towards green building and energy conservation, and the public is demanding these strategies in their building and renovation projects.
As a result, builders and contractors have greatly increased the services they offer that promote energy efficiency. This means offering property owners great options of building materials that can reduce energy consumption. Leading this category is spray foam, which is versatile enough to be used in a multitude of ways, primarily as an insulation or roofing material.
Capitalizing on this demand, Graco seems to be making it a priority to enhance its line of products that support this trend. The company is constantly working on new and improved equipment lines, and several of its recent additions have been created with considerable input and involvement of contractors who can offer insight about what they actually need on the job.
Building professionals are loyal to the Graco brand because they don’t want to risk breakdowns or equipment problems on the job site. These contractors know they can depend on Graco equipment to deliver the results these jobs demand, even under the toughest of conditions. The diverse assortment of products offered in the Graco lineup means that there is a perfect option for any type of contracting business whose work involves the application of sprayed materials including paint and spray foam.
Graco spray guns are a staple in the industry, an essential tool that is spotted at countless job sites. They are a favorite among contractors for their reliable, efficient performance and their emphasis on low-maintenance operation.
Of course, the brand’s larger sprayer machines are also a popular choice among many building professionals.
Intech Equipment & Supply is a top distributor of Graco spray foam equipment. Browse our wide selection of Graco products, and don’t forget to check out our assortment of accessories and replacement parts.