Strong demand from North American manufacturers boosted Graco Inc.'s fourth-quarter results to record highs, but the Minneapolis-based company still did not beat analysts' profit expectations.
The maker of factory and construction spray-equipment reported after the market closed Monday that sales jumped 13 percent to $306 million during the quarter. Earnings rose 10 percent to $49 million, or 80 cents a share. On average, analysts had expected revenue of $299 million and profits of 84 cents a share for the quarter ended Dec. 26.
Company officials acknowledged negative currency translations slashed the quarter's profits by $3 million and cut revenue by $8 million. They also noted acquisition and divestiture costs rose during the quarter as Graco shed its Illinois Tool Works liquid painting division and started plans to scoop up four equipment manufacturers in Pennsylvania, Utah, Canada and Brazil.
Graco CEO Patrick McHale praised the company's record results, crediting "an outstanding effort by Graco's employees and channel partners around the world."
The quarter delivered the 14th consecutive run of record sales. And without currency translations that make U.S. products more expensive overseas, Graco achieved sizable growth in each of its reporting segments and regions, McHale said.
"Although currencies were a head wind in the fourth quarter and the company continued to invest in regional and product expansion throughout the year, Graco achieved record earnings for the second consecutive year," he said.
Graco will host a conference call and webcast with Wall Street analysts Tuesday morning.
The stock closed Monday at $77.17, down 13 cents a share.
For the full fiscal year 2014, Graco's revenues met Wall Street's consensus expectations, rising 11 percent to $1.22 billion. Net profits rose 7 percent to $225.6 million, or $3.65 per share. Analysts had expected $3.69 a share.
