Q2 2024 Graco Inc Earnings Call Transcript
Key Points
- Gross margin rate increased by 230 basis points, driven by realized pricing and lower product costs.
- Contractor segment achieved record sales with a 6% growth compared to last year, driven by strong demand for new products.
- Operating margins improved across all segments, with a consolidated operating profit margin of 29%.
- Interest expenses decreased due to the repayment of long-term debt in 2023.
- New product introductions in the contractor segment are well-received, contributing to positive sales momentum.
- Second quarter sales decreased by 1% compared to the same quarter last year.
- Net earnings decreased by 1%, reflecting a challenging revenue environment.
- Asia Pacific region experienced deteriorating demand, particularly in semiconductor, sealants, adhesives, and industrial lubrication.
- Sales in the industrial segment declined by 4%, with weak results in Asia Pacific and slowing activity in key markets.
- Process segment sales were down 9% compared to the same quarter last year, with broad-based weakness across regions.
Good morning, and welcome to the second quarter conference call for Graco Inc, if you wish to access the replay for this call, you may do so by visiting the company website at www.graco.com. Graco has additional information available in a PowerPoint slide presentation, which is available as part of the webcast player.
At the request of the company, we will open the conference up for question and answers after the opening remarks from management. During this call, various remarks may be made by management about their expectations, plans and prospects for the future. This remarks constitute forward-looking statements for the purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act.
Actual results may differ materially from those indicated as a result of various risk factors, including those identified in Item 1A of the company's 2023 Annual Report on Form 10-K in Item 1A of the company's most recent quarterly reports on Form 10-Q. These reports are available on the company's website at
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