Graco Inc.'s third-quarter profit rose 6 percent, outpacing analysts' expectations.
The Minneapolis-based manufacturer of pumps and other fluid-handling equipment said its profit was $59.6 million for the quarter ended Sept. 26. That amounted to 97 cents a share, beating analysts' expectations by 3 cents a share.
Sales grew across all business divisions and geographic regions, pushing overall revenue up 9 percent to a record $302.6 million, though that was below analysts' consensus of $303.6 million.
Results were strongest in North and South America and for industrial paint and coating equipment, followed by contractor equipment. Asia posted double digit sales growth amid strong orders for industrial spray equipment. Europe, which delivered single-digit sales increases during the quarter, experienced renewed economic softening, officials said.
Days after the end of third quarter, Graco announced that it had bought an English based valves manufacturer called Alco Valves Group for nearly $116 million.
Graco also announced that it received a final federal order to divest the liquid finishing equipment business it bought from Illinois Tool Works in 2012. Graco plans to sell the business to North Carolina-based Carlisle Companies Inc. for $590 million. The sale is expected to close in March.
The divestiture does not affect the powder paint equipment business Graco bought from Illinois Tool Works.
Graco's stock price closed down $1.77 to $73.44 a share before the results were announced. The shares were flat in after-hours trading.
