Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 55

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 55
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 $730.2 EMEA183.9 179.5 Asia Pacific83.4 76.0 Total$988.9 $985.7 Operating Earnings as a Percentage of Sales27 %29 %

The following table presents the components of net sales change by geographic region for the Contractor segment:

20242023Volume and PriceAcquisitionsCurrencyTotalVolume and PriceAcquisitionsCurrencyTotalAmericas(2)%1%0%(1)%(1)%0%0%(1)%EMEA(1)%3%0%2%(1)%0%2%1%Asia Pacific6%6%(2)%10%(5)%0%(4)%(9)%Segment Total(1)%2%(1)%0%(1)%0%0%(1)%

Contractor segment sales in 2024 were flat compared to 2023. Incremental sales from acquired operations, increased sales of protective coatings equipment and favorable response to new product offerings offset declines in North American construction markets. The operating margin rate for this segment was 2 percentage points lower than last year due to higher product costs on lower sales volumes, the unfavorable effects of lower margin rates of acquired operations and litigation costs associated with a trial that concluded in December of 2024.

Sales in the Americas represent the majority of sales for the Contractor segment. Management regularly reviews economic and financial indicators for North America, including levels of residential, commercial and institutional construction, remodeling rates and interest rates. Management also reviews gross domestic product for the regions and the level of the U.S. dollar versus the euro and other currencies.

Industrial Segment

The following table presents net sales and operating earnings as a percentage of sales for the Industrial segment (dollars in millions):

20242023SalesAmericas$273.0 $263.6 EMEA200.3 207.6 Asia Pacific146.3 191.6 Total$619.6 $662.8 Operating Earnings as a Percentage of Sales33 %35 %

28

The following table presents the components of net sales change by geographic region for the Industrial segment:

20242023Volume and PriceAcquisitionsCurrencyTotalVolume and PriceAcquisitionsCurrencyTotalAmericas4%0%0%4%10%0%0%10%EMEA(4)%0%0%(4)%(2)%0%3%1%Asia Pacific(22)%0%(2)%(24)%(3)%0%(3)%(6)%Segment