Graco Inc. beat earnings expectations for the first quarter amid a return of the U.S. construction sector and contributions from a recently-acquired powder-finishing business, officials said Wednesday.
Both items bolstered sales and profits for the Minneapolis industrial pump and spray manufacturer. Earnings rose 47 percent to $52 million, or 84 cents a share. Sales rose 15 percent to $269 million during the quarter.
On average, Wall Street analysts expected earnings of 73 cents a share and $272 million in revenues.
CEO Patrick McHale said in a statement that the sales boost was "driven by the 2012 acquisition of the Gema powder finishing business and strong double-digit [earnings] growth by our contractor business."
He added that the year started out "slower than expected" in the Americas and Europe for industrial equipment sales but recovered to help that division realize a 22 percent sales bump for the quarter.
Lubrication equipment sales, however, were somewhat soft in Asia as demand from mining customers stayed weak. Lubrication sales in Europe and the Middle East showed strength.
Dee DePass
