Graco Inc. (NYSE: GGG) today announced results for the quarter
and year ended December 26, 2014.
Summary
$ in millions except per share amounts
|
|
Quarter Ended
|
|
Year Ended
|
|
|
Dec 26,
|
|
Dec 27,
|
|
%
|
|
Dec 26,
|
|
Dec 27,
|
|
%
|
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
Net Sales
|
|
$
|
306.0
|
|
$
|
271.9
|
|
13
|
%
|
|
$
|
1,221.1
|
|
$
|
1,104.0
|
|
11
|
%
|
Operating Earnings
|
|
|
69.5
|
|
|
63.3
|
|
10
|
%
|
|
|
308.9
|
|
|
279.8
|
|
10
|
%
|
Net Earnings
|
|
|
49.0
|
|
|
44.7
|
|
10
|
%
|
|
|
225.6
|
|
|
210.8
|
|
7
|
%
|
Diluted Net Earnings per Common Share
|
|
$
|
0.80
|
|
$
|
0.71
|
|
13
|
%
|
|
$
|
3.65
|
|
$
|
3.36
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Fourth quarter and year-to-date sales increased in all reportable
segments and regions, including double-digit percentage growth in the
Americas.
-
Changes in currency translation rates reduced sales by approximately
$8 million for the quarter and $3 million for the year, and decreased
net earnings by approximately $3 million for the quarter and $2
million for the year.
-
Gross margin rates remained strong at 54 percent for the quarter and
55 percent for the year, down slightly compared to comparable periods
last year.
-
Expenses of acquired operations and spending on regional and product
growth initiatives accounted for approximately 75 percent of the
increase in total operating expenses for both the quarter and the
year-to-date.
-
Costs and expenses related to acquisitions and divestitures were
approximately $5 million in the fourth quarter, including $2 million
of purchase accounting inventory step-up and $3 million of acquisition
and divestiture costs.
-
Changes in the effective income tax rate reflect renewals of the
federal R&D credit in the fourth quarter of 2014 and in the first
quarter of 2013.
“An outstanding effort by Graco’s employees and channel partners around
the world resulted in strong financial performance throughout the year,
with the Company posting a new record in annual sales and the fourteenth
consecutive quarter of record quarterly sales,” said Patrick J. McHale,
Graco’s President and Chief Executive Officer. “In the fourth quarter,
the Company achieved double-digit growth on a constant currency basis in
every reportable segment and region, with the exception of the Asia
Pacific region which grew at a high single digit pace. Also on a
constant currency basis, fourth quarter sales grew double digits
organically, the strongest quarterly organic growth performance of the
year and reflecting solid contributions from nearly every product
category and geography within Graco. Although currencies were a headwind
in the fourth quarter and the Company continued to invest in regional
and product expansion throughout the year, Graco achieved record
earnings for the second consecutive year.”
Consolidated Results
Sales for the quarter increased 13 percent, including increases of 18
percent in the Americas, 8 percent in EMEA (14 percent at consistent
translation rates) and 5 percent in Asia Pacific (8 percent at
consistent translation rates). For the year, sales increased 11 percent,
including increases of 15 percent in the Americas, 8 percent in EMEA and
3 percent in Asia Pacific. Sales from acquired operations totaled $15
million for the quarter and $41 million for the year, contributing 5
percentage points of the growth for the quarter and 4 percentage points
of the growth for the year.
Gross profit margin, expressed as a percentage of sales, was 54 percent
for the quarter and 55 percent for the year, slightly lower than the
comparable periods of last year due to the effects of purchase
accounting ($2 million for the quarter and $2½ million for the year) and
lower margins from acquired operations.
Operating expenses for the quarter increased $11 million, including $7
million from acquired operations. For the year, operating expenses
increased $30 million, including $15 million from acquired operations.
Spending related to regional and product expansion totaled $2 million
for the quarter and $8 million for the year.
Other expense (income) included dividends received from the Liquid
Finishing businesses that are held separate from the Company’s other
businesses. These dividends totaled $4 million for the quarter and $28
million for the year, consistent with the comparable periods last year.
The effective income tax rate for the quarter was 27 percent, down from
28½ percent last year. The decrease reflected the full-year 2014 effect
of the federal R&D credit that was reinstated in the fourth quarter,
partially offset by the effect of a reduction in foreign earnings taxed
at lower rates. The effective rate for the year was 28½ percent, up from
27 percent last year. Last year’s effective rate was lower primarily
because it included two years of federal R&D credit as the credit was
reinstated in the first quarter of 2013 retroactive to the beginning of
2012.
Segment Results
Certain measures of performance by segment are summarized below:
|
|
Quarter
|
|
Year
|
|
|
Industrial
|
|
Contractor
|
|
Lubrication
|
|
Industrial
|
|
Contractor
|
|
Lubrication
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (in millions)
|
|
$
|
194.9
|
|
|
$
|
80.1
|
|
|
$
|
30.9
|
|
|
$
|
727.4
|
|
|
$
|
375.6
|
|
|
$
|
118.2
|
|
Net sales percentage change from last year
|
|
|
13
|
%
|
|
|
9
|
%
|
|
|
16
|
%
|
|
|
12
|
%
|
|
|
10
|
%
|
|
|
8
|
%
|
Operating earnings as a percentage of net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
30
|
%
|
|
|
15
|
%
|
|
|
21
|
%
|
|
|
31
|
%
|
|
|
22
|
%
|
|
|
22
|
%
|
2013
|
|
|
32
|
%
|
|
|
13
|
%
|
|
|
20
|
%
|
|
|
32
|
%
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial segment sales increased 13 percent for the quarter (17
percent at consistent translation rates) and 12 percent for the year.
Sales for the quarter increased 22 percent in the Americas, 11 percent
in EMEA (17 percent at consistent translation rates) and 3 percent in
Asia Pacific (6 percent at consistent translation rates). Sales for the
year increased 18 percent in the Americas, 9 percent in EMEA and 3
percent in Asia Pacific. Results for 2014 included the operations of
EcoQuip, acquired at the end of 2013, QED Environmental Systems,
acquired at the beginning of fiscal 2014, and Alco Valves Group,
acquired at the beginning of the fourth quarter. Acquired operations
contributed $15 million (9 percentage points of growth) to sales in this
segment for the quarter and $41 million (6 percentage points of growth)
for the year. Operating margin rates for the quarter and year decreased
compared to last year due to lower margins on acquired operations,
including the impact of acquisition-related inventory valuation
adjustments and spending on regional and product expansion.
Contractor segment sales increased 9 percent for the quarter (11 percent
at consistent translation rates) and 10 percent for the year. Sales for
the quarter increased 12 percent in the Americas, were flat in EMEA (up
6 percent at consistent translation rates), and increased 11 percent in
Asia Pacific (14 percent at consistent translation rates). For the year,
sales increased 12 percent in the Americas, 5 percent in EMEA and 3
percent in Asia Pacific. Higher sales and the leverage on expenses drove
improvements in operating earnings as a percentage of sales.
Lubrication segment sales increased 16 percent (18 percent at consistent
translation rates) for the quarter and 8 percent for the year. Sales for
the quarter increased 21 percent in the Americas, decreased 10 percent
in EMEA (5 percent at consistent translation rates), and increased 9
percent in Asia Pacific (13 percent at consistent translation rates).
For the year, sales increased 13 percent in the Americas and decreased 1
percent in EMEA and 7 percent in Asia Pacific. Higher sales volume and
expense leverage led to higher operating margin rates in the Lubrication
segment.
Acquisitions and Divestitures
In April 2012, the Company completed the purchase of the finishing
businesses of Illinois Tool Works Inc. The acquisition included Powder
Finishing and Liquid Finishing equipment operations, technologies and
brands. Results of the Powder Finishing business have been included in
the Industrial segment since the date of acquisition. Pursuant to a
March 2012 order, the Liquid Finishing businesses were to be held
separate from the rest of Graco’s businesses while the United States
Federal Trade Commission (“FTC”) considered a settlement with Graco and
determined which portions of the Liquid Finishing business Graco must
divest.
The FTC approved a final decision and order that became effective on
October 9, 2014. Pursuant to the final order, Graco must sell the Liquid
Finishing business assets within 180 days of the effective date. Graco
will continue to hold the Liquid Finishing businesses separate and
maintain them as viable and competitive until a sale process is
complete. The Liquid Finishing business assets are held as a cost-method
investment on Graco’s balance sheet, and income is recognized based on
dividends received from current earnings. Once the Company completes the
sale of its investment, there will be no further dividends from Liquid
Finishing.
On October 8, 2014, the Company announced it had signed a definitive
agreement to sell the Liquid Finishing business assets for $590 million
cash, subject to regulatory approval and other customary closing
conditions. The sale transaction is expected to close in the first half
of 2015, in compliance with the FTC’s final decision and order.
On October 1, 2014, the Company acquired the stock of Alco Valves Group
(Alco) for £72 million cash. Alco is a United Kingdom (U.K.) based
manufacturer of high quality, high pressure valves used in the oil and
natural gas industry and in other industrial processes. Results of Alco
operations, including $6 million of sales, were included in the
Company’s Industrial segment starting from the date of acquisition. In
December 2014, the Company acquired the assets of Geo Blaster Equipment
Sales & Service Inc., a manufacturer of wet abrasive blasting equipment
for coating removal and surface preparation.
In fiscal January 2015, the Company completed the acquisitions of:
-
High Pressure Equipment company (HiP) for $160 million. HiP designs
and manufactures valves, fittings and other flow control equipment
engineered to perform in ultra-high pressure environments.
-
White Knight Fluid Handling, a manufacturer of high purity, metal free
pumps used in the production process of manufacturing semiconductors,
solar panels, LED flat panel displays and various other electronics.
-
Multimaq-Pistolas e Equipamentos Para Pintura Ltda. (Multimaq), a
manufacturer and distributor of finishing products in the Brazilian
market.
Strategic acquisitions support the Company’s growth plans to expand into
new markets and geographies.
Outlook
“Worldwide demand levels were resilient throughout 2014,” stated McHale.
“As we enter 2015, we expect demand levels to continue to be supportive
of growth in every reportable segment and geography, although currency
fluctuations and ongoing geopolitical instability remain a concern. Our
long-term growth initiatives continue to be our priority, providing a
cornerstone for our mid-single digit organic growth expectations for the
first quarter and full year 2015. Acquisitions completed in recent
months are expected to add approximately 5 percentage points to the
Company’s sales growth in 2015 and, as disclosed previously, provide
earnings accretion of 13 to 15 cents per share for the full year before
purchase accounting and transaction costs. At current exchange rates,
unfavorable movement in foreign currencies would be a headwind of
approximately 4 percent on sales and 10 percent on earnings in 2015.”
Cautionary Statement Regarding Forward-Looking Statements
The Company desires to take advantage of the “safe harbor” provisions
regarding forward-looking statements of the Private Securities
Litigation Reform Act of 1995 and is filing this Cautionary Statement in
order to do so. From time to time various forms filed by our Company
with the Securities and Exchange Commission, including our Form 10-K,
our Form 10-Qs and Form 8-Ks, and other disclosures, including our 2013
Overview report, press releases, earnings releases, analyst briefings,
conference calls and other written documents or oral statements released
by our Company, may contain forward-looking statements. Forward-looking
statements generally use words such as “expect,” “foresee,”
“anticipate,” “believe,” “project,” “should,” “estimate,” “will,” and
similar expressions, and reflect our Company’s expectations concerning
the future. All forecasts and projections are forward-looking
statements. Forward-looking statements are based upon currently
available information, but various risks and uncertainties may cause our
Company’s actual results to differ materially from those expressed in
these statements. The Company undertakes no obligation to update these
statements in light of new information or future events.
Future results could differ materially from those expressed, due to the
impact of changes in various factors. These risk factors include, but
are not limited to: our Company’s growth strategies, which include
making acquisitions, investing in new products, expanding geographically
and targeting new industries; whether we are able to effectively
complete a divestiture of the acquired Liquid Finishing businesses,
which has not been completed and remains subject to FTC approval;
economic conditions in the United States and other major world
economies; changes in currency translation rates; changes in laws and
regulations; compliance with anti-corruption laws; new entrants who copy
our products or infringe on our intellectual property; risks incident to
conducting business internationally; the ability to meet our customers’
needs and changes in product demand; supply interruptions or delays;
security breaches; political instability; results of and costs
associated with, litigation, administrative proceedings and regulatory
reviews incident to our business; the possibility of decline in
purchases from few large customers of the Contractor segment; variations
in activity in the construction and automotive industries; and natural
disasters. Please refer to Item 1A of our Annual Report on Form 10-K for
fiscal year 2013 (and most recent Form 10-Q) for a more comprehensive
discussion of these and other risk factors. These reports are available
on the Company’s website at www.graco.com/ir
and the Securities and Exchange Commission’s website at www.sec.gov.
Shareholders, potential investors and other readers are urged to
consider these factors in evaluating forward-looking statements and are
cautioned not to place undue reliance on such forward-looking statements.
Investors should realize that factors other than those identified above
and in Item 1A might prove important to the Company’s future results. It
is not possible for management to identify each and every factor that
may have an impact on the Company’s operations in the future as new
factors can develop from time to time.
Conference Call
Graco management will hold a conference call, including slides via
webcast, with analysts and institutional investors on Tuesday, January
27, 2015, at 11:00 a.m. ET, to discuss Graco’s fourth quarter and
year-end results.
A real-time Webcast of the conference call will be broadcast live over
the Internet. Individuals wanting to listen and view slides can access
the call at the Company’s website at www.graco.com.
Listeners should go to the website at least 15 minutes prior to the live
conference call to install any necessary audio software.
For those unable to listen to the live event, a replay will be available
soon after the conference call at Graco’s website, or by telephone
beginning at approximately 2:00 p.m. ET on January 27, 2015, by dialing
888-203-1112, Conference ID #2880728, if calling within the U.S. or
Canada. The dial-in number for international participants is
719-457-0820, with the same Conference ID #. The replay by telephone
will be available through January 31, 2015.
About Graco
Graco Inc. supplies technology and expertise for the management of
fluids and coatings in both industrial and commercial applications. It
designs, manufactures and markets systems and equipment to move,
measure, control, dispense and spray fluid and powder materials. A
recognized leader in its specialties, Minneapolis-based Graco serves
customers around the world in the manufacturing, processing,
construction and maintenance industries. For additional information
about Graco Inc., please visit us at www.graco.com
or on Twitter @GracoInc.
GRACO INC. AND SUBSIDIARIES
|
Consolidated Statement of Earnings (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Year Ended
|
(in thousands, except per share amounts)
|
|
Dec 26,
|
|
Dec 27,
|
|
Dec 26,
|
|
Dec 27,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net Sales
|
|
$
|
306,005
|
|
|
$
|
271,923
|
|
|
$
|
1,221,130
|
|
|
$
|
1,104,024
|
|
|
Cost of products sold
|
|
|
141,245
|
|
|
|
124,724
|
|
|
|
554,394
|
|
|
|
496,569
|
|
Gross Profit
|
|
|
164,760
|
|
|
|
147,199
|
|
|
|
666,736
|
|
|
|
607,455
|
|
|
Product development
|
|
|
13,897
|
|
|
|
14,032
|
|
|
|
54,246
|
|
|
|
51,428
|
|
|
Selling, marketing and distribution
|
|
|
51,440
|
|
|
|
45,646
|
|
|
|
194,751
|
|
|
|
177,853
|
|
|
General and administrative
|
|
|
29,958
|
|
|
|
24,192
|
|
|
|
108,814
|
|
|
|
98,405
|
|
Operating Earnings
|
|
|
69,465
|
|
|
|
63,329
|
|
|
|
308,925
|
|
|
|
279,769
|
|
|
Interest expense
|
|
|
4,903
|
|
|
|
4,310
|
|
|
|
18,733
|
|
|
|
18,147
|
|
|
Other expense (income), net
|
|
|
(2,479
|
)
|
|
|
(3,529
|
)
|
|
|
(24,881
|
)
|
|
|
(27,200
|
)
|
Earnings Before Income Taxes
|
|
|
67,041
|
|
|
|
62,548
|
|
|
|
315,073
|
|
|
|
288,822
|
|
|
Income taxes
|
|
|
18,000
|
|
|
|
17,800
|
|
|
|
89,500
|
|
|
|
78,000
|
|
Net Earnings
|
|
$
|
49,041
|
|
|
$
|
44,748
|
|
|
$
|
225,573
|
|
|
$
|
210,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.83
|
|
|
$
|
0.73
|
|
|
$
|
3.75
|
|
|
$
|
3.44
|
|
|
Diluted
|
|
$
|
0.80
|
|
|
$
|
0.71
|
|
|
$
|
3.65
|
|
|
$
|
3.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
59,388
|
|
|
|
61,148
|
|
|
|
60,148
|
|
|
|
61,203
|
|
|
Diluted
|
|
|
60,973
|
|
|
|
62,917
|
|
|
|
61,745
|
|
|
|
62,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Year Ended
|
|
|
|
Dec 26,
|
|
Dec 27,
|
|
Dec 26,
|
|
Dec 27,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
$
|
194,949
|
|
|
$
|
171,844
|
|
|
$
|
727,389
|
|
|
$
|
652,344
|
|
|
Contractor
|
|
|
80,133
|
|
|
|
73,478
|
|
|
|
375,574
|
|
|
|
342,546
|
|
|
Lubrication
|
|
|
30,923
|
|
|
|
26,601
|
|
|
|
118,167
|
|
|
|
109,134
|
|
Total
|
|
$
|
306,005
|
|
|
$
|
271,923
|
|
|
$
|
1,221,130
|
|
|
$
|
1,104,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
$
|
57,600
|
|
|
$
|
55,087
|
|
|
$
|
225,337
|
|
|
$
|
211,265
|
|
|
Contractor
|
|
|
11,995
|
|
|
|
9,875
|
|
|
|
81,892
|
|
|
|
72,245
|
|
|
Lubrication
|
|
|
6,600
|
|
|
|
5,227
|
|
|
|
26,403
|
|
|
|
22,512
|
|
|
Unallocated Corporate expenses
|
|
|
(6,730
|
)
|
|
|
(6,860
|
)
|
|
|
(24,707
|
)
|
|
|
(26,253
|
)
|
Total
|
|
$
|
69,465
|
|
|
$
|
63,329
|
|
|
$
|
308,925
|
|
|
$
|
279,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRACO INC. AND SUBSIDIARIES
|
Consolidated Balance Sheets (Unaudited)
|
(In thousands)
|
|
|
|
|
Dec 26,
|
|
Dec 27,
|
|
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
23,656
|
|
|
$
|
19,756
|
|
|
Accounts receivable, less allowances of $8,100 and $6,300
|
|
|
214,944
|
|
|
|
183,293
|
|
|
Inventories
|
|
|
159,797
|
|
|
|
133,787
|
|
|
Deferred income taxes
|
|
|
19,969
|
|
|
|
18,827
|
|
|
Investment in businesses held separate
|
|
|
421,767
|
|
|
|
422,297
|
|
|
Other current assets
|
|
|
19,374
|
|
|
|
14,633
|
|
|
|
Total current assets
|
|
|
859,507
|
|
|
|
792,593
|
|
|
|
|
|
|
|
|
|
|
Property, Plant and Equipment
|
|
|
|
|
|
|
|
Cost
|
|
|
433,751
|
|
|
|
407,887
|
|
|
Accumulated depreciation
|
|
|
(272,521
|
)
|
|
|
(256,170
|
)
|
|
|
Property, plant and equipment, net
|
|
|
161,230
|
|
|
|
151,717
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
292,574
|
|
|
|
189,967
|
|
Other Intangible Assets, net
|
|
|
176,278
|
|
|
|
147,940
|
|
Deferred Income Taxes
|
|
|
28,982
|
|
|
|
20,366
|
|
Other Assets
|
|
|
26,207
|
|
|
|
24,645
|
|
|
|
Total Assets
|
|
$
|
1,544,778
|
|
|
$
|
1,327,228
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
Notes payable to banks
|
|
$
|
5,016
|
|
|
$
|
9,584
|
|
|
Trade accounts payable
|
|
|
39,306
|
|
|
|
34,282
|
|
|
Salaries and incentives
|
|
|
40,775
|
|
|
|
38,939
|
|
|
Dividends payable
|
|
|
17,790
|
|
|
|
16,881
|
|
|
Other current liabilities
|
|
|
71,593
|
|
|
|
69,167
|
|
|
|
Total current liabilities
|
|
|
174,480
|
|
|
|
168,853
|
|
|
|
|
|
|
|
|
|
|
Long-term Debt
|
|
|
615,000
|
|
|
|
408,370
|
|
Retirement Benefits and Deferred Compensation
|
|
|
136,812
|
|
|
|
94,705
|
|
Deferred Income Taxes
|
|
|
22,454
|
|
|
|
20,935
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
Common stock
|
|
|
59,199
|
|
|
|
61,003
|
|
|
Additional paid-in-capital
|
|
|
384,704
|
|
|
|
347,058
|
|
|
Retained earnings
|
|
|
252,865
|
|
|
|
272,653
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(100,736
|
)
|
|
|
(46,349
|
)
|
|
|
Total shareholders' equity
|
|
|
596,032
|
|
|
|
634,365
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
$
|
1,544,778
|
|
|
$
|
1,327,228
|
|
|
|
|
|
|
|
|
|
|
GRACO INC. AND SUBSIDIARIES
|
Consolidated Statements of Cash Flows (Unaudited)
|
(In thousands)
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
Dec 26,
|
|
Dec 27,
|
|
|
|
|
|
|
2014
|
|
2013
|
Cash Flows From Operating Activities
|
|
|
|
|
|
|
|
Net Earnings
|
|
$
|
225,573
|
|
|
$
|
210,822
|
|
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
35,515
|
|
|
|
37,316
|
|
|
|
|
Deferred income taxes
|
|
|
329
|
|
|
|
(1,715
|
)
|
|
|
|
Share-based compensation
|
|
|
17,249
|
|
|
|
16,545
|
|
|
|
|
Excess tax benefit related to share-based payment arrangements
|
|
|
(6,634
|
)
|
|
|
(8,347
|
)
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(26,557
|
)
|
|
|
(11,880
|
)
|
|
|
|
|
Inventories
|
|
|
(15,079
|
)
|
|
|
(10,186
|
)
|
|
|
|
|
Trade accounts payable
|
|
|
450
|
|
|
|
2,436
|
|
|
|
|
|
Salaries and incentives
|
|
|
1,520
|
|
|
|
2,022
|
|
|
|
|
|
Retirement benefits and deferred compensation
|
|
|
5,052
|
|
|
|
3,629
|
|
|
|
|
|
Other accrued liabilities
|
|
|
6,151
|
|
|
|
5,556
|
|
|
|
|
|
Other
|
|
|
(2,314
|
)
|
|
|
(3,143
|
)
|
Net cash provided by operating activities
|
|
|
241,255
|
|
|
|
243,055
|
|
Cash Flows From Investing Activities
|
|
|
|
|
|
|
|
Property, plant and equipment additions
|
|
|
(30,636
|
)
|
|
|
(23,319
|
)
|
|
Acquisition of businesses, net of cash acquired
|
|
|
(185,462
|
)
|
|
|
(11,560
|
)
|
|
Investment in businesses held separate
|
|
|
530
|
|
|
|
4,516
|
|
|
Proceeds from sale of assets
|
|
|
-
|
|
|
|
1,600
|
|
|
Other
|
|
|
(1,163
|
)
|
|
|
(2,475
|
)
|
Net cash used in investing activities
|
|
|
(216,731
|
)
|
|
|
(31,238
|
)
|
Cash Flows From Financing Activities
|
|
|
|
|
|
|
|
Borrowings (payments) on short-term lines of credit, net
|
|
|
(4,459
|
)
|
|
|
1,280
|
|
|
Borrowings on long-term line of credit
|
|
|
717,845
|
|
|
|
419,905
|
|
|
Payments on long-term line of credit
|
|
|
(511,215
|
)
|
|
|
(568,122
|
)
|
|
Payments of debt issuance costs
|
|
|
(890
|
)
|
|
|
-
|
|
|
Excess tax benefit related to share-based payment arrangements
|
|
|
6,634
|
|
|
|
8,347
|
|
|
Common stock issued
|
|
|
30,199
|
|
|
|
41,664
|
|
|
Common stock repurchased
|
|
|
(195,326
|
)
|
|
|
(67,827
|
)
|
|
Cash dividends paid
|
|
|
(66,362
|
)
|
|
|
(61,139
|
)
|
Net cash provided by (used in) financing activities
|
|
|
(23,574
|
)
|
|
|
(225,892
|
)
|
Effect of exchange rate changes on cash
|
|
|
2,950
|
|
|
|
2,711
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
3,900
|
|
|
|
(11,364
|
)
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
19,756
|
|
|
|
31,120
|
|
|
End of period
|
|
$
|
23,656
|
|
|
$
|
19,756
|
|
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