Sales totaled $374 million this quarter, a decrease of 8% from the first quarter last year.
Net earnings totaled $73 million for the quarter or $0.42 per diluted share.
After adjusting for the impact of excess tax benefits from stock option exercises, net earnings totaled $65 million or $0.38 per diluted share.
Our gross margin rate was 53.2% in the first quarter, approximately the same as last year.
Operating expenses decreased by $3 million from the first quarter last year as reductions in volume and earnings-based expenses more than offset higher product development and occupancy costs.
Reported income tax rate was 11% for the quarter, approximately three percentage points lower than last year, primarily due to an increase in excess tax benefits related to stock option exercises.
After adjusting for this effect and other nonrecurring tax benefits, our tax rate for the quarter was 20.8%, similar to last year.
e grew $250 million on our $500 million credit facility during the first quarter to increase our cash position and preserve financial flexibility.
This will add approximately $1 million to quarterly interest expense.
Cash flows from operations totaled $54 million in the first quarter as compared to $51 million last year, slightly above the first quarter last year.
Capital expenditures totaled $19 million in the first quarter.
We also paid cash dividends of $29 million.
For the full year 2020, capital expenditures are expected to be approximately $70 million, including approximately $50 million for facility expansion projects.
During the first quarter, we made share repurchases of approximately $90 million, including $8 million, which had not yet settled at the end of the quarter.
Cash used for repurchases was partially offset by issuances of $37 million.
The purchase of approximately 2.1 million shares in the first quarter will largely eliminate dilution in 2020.
Due to economic uncertainty, we have withdrawn our revenue guidance for the remainder of 2020.
As an example, the sales declined by 20% and factory volumes declined by an equivalent amount, while also maintaining our infrastructure then the unfavorable effect of unabsorbed cost on gross margin rate is expected to be about two to 2.5 percentage points.
If the sales declined by 30% and factory volumes declined by the same amount while maintaining our infrastructure, the unfavorable effect is expected to be about 3.5 or four percentage points on gross margin rate.
With a revenue decline of 8% in the first quarter, we saw a decline in operating earnings of 14% or decremental margins of 47%.
At a 30% decline in revenue, similar to current booking trends while maintaining our expense base, decremental margins are expected to be around 65%.
Based on current exchange rates and the same volume and mix of products and sales by currency in the prior year, the effective exchange is currently expected to be a headwind of approximately 1% on sales and 3% on earnings in 2020.
Unallocated corporate expenses are expected to be approximately $30 million for the full year 2020 and can vary by quarter.
The effective tax rate is expected to be approximately 20% to 21% for the full year, excluding any FX from excess tax benefits related to stock option exercises or other onetime items.
Our Industrial segment is about 60% of our revenue in AP and suffered the worst.
As the virus hit EMEA and then the U.S., we saw our incoming order rate plummet, and while it's bounced around week-to-week, we've been running about 30% below prior years since mid-March.
We took a measured approach during the 2008, 2009 crisis, and I believe our investors were amply rewarded over the following decade.
Our balance sheet and cash flow remains strong.
We borrowed $250 million under our revolving credit facility in order to increase our cash position and preserve our financial flexibility.
In conclusion, we expect the short term to be difficult with continuing declines in revenue and profitability.

Summary:
Sales totaled $374 million this quarter, a decrease of 8% from the first quarter last year.
Net earnings totaled $73 million for the quarter or $0.42 per diluted share.
After adjusting for the impact of excess tax benefits from stock option exercises, net earnings totaled $65 million or $0.38 per diluted share.
Due to economic uncertainty, we have withdrawn our revenue guidance for the remainder of 2020.
Our balance sheet and cash flow remains strong.
In conclusion, we expect the short term to be difficult with continuing declines in revenue and profitability.