Equipment Maker Graco Says FX Increased 2Q Margin -- Currency Comment
July 22 2021 - 6:27AM
Dow Jones News
By Paulo Trevisani
Graco Inc. said favorable exchange rates helped increase its
gross profit margin in the second quarter.
The Minneapolis, Minn., maker of industrial equipment on
Wednesday reported adjusted earnings of 62 cents a share in the
quarter ended June 25, up 68% from a year earlier, with gross
profit of $264 million, up from $183 million a year earlier.
The company, which supplies technology for the management of
fluids and coatings and operates in several countries, said its
gross profit margin gained two percentage points compared to a year
earlier, as increased production volume, favorable product and
channel mix and favorable changes in currency translation rates
offset higher product costs.
"Changes in currency translation rates increased operating
expenses by $3 million (2 percentage points) for the quarter and $5
million (2 percentage points) for the year to date," Graco
said.
It also said the exchange rate increased worldwide sales by $12
million for the quarter and $23 million for the first half of the
year.
Graco's operating margin fell two percentage points in the
quarter versus a year earlier, as gains from favorable exchange
rates and increased sales failed to offset higher material, factory
and sales costs, the company said.
The WSJ Dollar Index fell 1% in the quarter ended June 25.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
(END) Dow Jones Newswires
July 22, 2021 06:14 ET (10:14 GMT)
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