Graco Inc. reported a 36 percent jump in first-quarter profit but said its financial performance was pressured by effects from the strong dollar.
Net income rose to $68.8 million from $50.7 million a year ago, helped by investment income and dividends from the sale of Graco's liquid-finishing business. Earnings per share amounted $1.14, beating estimates and up from 81 cents a year ago.
Sales increased 5.7 percent to $306.5 million, slightly missing analysts' average estimates.
"Company sales grew at a mid-single-digit pace organically in the first quarter, on a constant currency basis, consistent with our outlook," Chief Executive Patrick McHale said in a statement.
A new warehouse in China and growth in products that support the oil and natural gas sector fueled the sales increase for the Minneapolis-based provider of pumps and related fluid management equipment.
Currency translation reduced sales by $13 million and net profit by $4 million, the company said. Executives said they now expect the strong dollar will "create a full-year head wind of approximately 5 percent on sales and 11 percent on earnings."
Catherine Roberts
