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MIRA INFORM REPORT
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Report No. : |
490543 |
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Report Date : |
06.02.2018 |
IDENTIFICATION DETAILS
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Name : |
GRACO INC |
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Registered Office : |
88 11th Avenue NE, Minneapolis, MN 55413 |
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Country : |
United States |
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Financials (as on) : |
30.12.2016 [Subject and its subsidiaries] |
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Date of Incorporation : |
18.12.1947 |
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Legal Form : |
Public Company |
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Line of Business : |
Subject together with its subsidiaries, designs, manufactures, and
markets systems and equipment used to move, measure, control, dispense, and
spray fluid and powder materials worldwide. |
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No. of Employees : |
3,300 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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United States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
UNITED STATES - ECONOMIC OVERVIEW
The US has the most technologically powerful economy in the world, with a per capita GDP of $57,300. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.
In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.
Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.
The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.
Imported oil accounts for nearly 55% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.
The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.
Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures.
In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.
In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.
In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and further reduce them as conditions warranted; the Fed ended the purchases during the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since before the global recession began; inflation stood at 1.7%, and public debt as a share of GDP continued to decline, following several years of increases. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With US GDP growth below 2%, the Fed has opted to raise rates three times since then, and in mid-June 2017, the range for the target rate stood at 1% to 1.25%.
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Source : CIA |
Company
name and summary
Company name: GRACO INC.
Address: 88 11th Avenue
NE, Minneapolis, MN 55413 – USA
Mailing address: PO Box
1441, Minneapolis, MN 55440 – USA
Telephone: +1
612-623-6000
Fax: +1 612-623-6777
Website: www.graco.com
Corporate ID#: H-844
State: Minneapolis
Judicial form: Public Company (NYSE = GGG)
Date incorporated: 12-18-1947
Stock: 55,996,000
shares issued and outstanding as of 07-19-2017
Value: USD
1= par value
Name of manager: PATRICK
J. MCHALE
ACTIVITIES & OPERATIONS
Business:
Graco Inc., together with its subsidiaries, designs, manufactures, and
markets systems and equipment used to move, measure, control, dispense, and
spray fluid and powder materials worldwide.
It operates through three segments: Industrial, Process, and Contractor.
The Industrial segment offers proportioning systems that are used to
spray polyurethane foam and polyurea coatings; vapor-abrasive blasting
equipment; equipment that pumps, meters, mixes, and dispenses sealant,
adhesive, and composite materials; and gel coat equipment, chop and wet-out
systems, resin transfer molding systems, and applicators. This segment also
provides paint circulating and supply pumps; paint circulating advanced control
systems; plural component coating proportioners; spare parts and accessories;
and powder finishing products that coat powder finishing on metals under the
Gema name.
The Process segment offers pumps that move chemicals, water, wastewater,
petroleum, food, and other fluids; pressure valves used in the oil and natural
gas industry, other industrial processes, and research facilities; and chemical
injection pumping solutions for injection of chemicals into producing oil wells
and pipelines. This segment also supplies pumps, hose reels, meters, valves,
and accessories for fast oil change facilities, service garages, fleet service
centers, automobile dealerships, auto parts stores, truck builders, and heavy
equipment service centers; and systems, components, and accessories for the
automatic lubrication of bearings, gears, and generators in industrial and
commercial equipment, compressors, turbines, and on- and off-road vehicles.
The Contractor segment offers sprayers that apply paint and texture to
walls, other structures, and ceilings; and highly viscous coatings to roofs, as
well as markings on roads, parking lots, athletic fields, and floors.
The company was founded in 1926 and is headquartered in Minneapolis,
Minnesota.
Office of the Foreign
Assets Control (OFAC):
The company is not listed on the OFAC list.
The Specially Designated Nationals (SDN) List is a publication of OFAC
which lists individuals and organizations with whom United States citizens and
permanent residents are prohibited from doing business.
No name of foreign suppliers available.
EIN: 41-0285640
Staff: 3,300
Operations & branches:
At the headquarters, we
find a large factory, warehouse and office.
The Company maintains
branches in Anoka, MN; Rogers, MN; North Canton, OH;
Sioux Falls, SD.
SHAREHOLDERS
& MANAGERS
Shareholders:
The Company is listed with the NYSE under symbol GGG.
As of 06-30-2017, 90% of the stock was held by institutional and mutual
fund owners:
|
Vanguard
Group, Inc. (The) |
8.80% |
|
Blackrock
Inc. |
7.87% |
|
Mairs
& Power Inc |
5.92% |
|
Fiera
Capital Corporation |
5.07% |
Management:
Patrick J. McHALEserves has been the Chief Executive Officer and
President of Graco Inc. since June 12, 2007. He joined Graco Inc., in December
1989.
Mr. McHale served as Vice President and General Manager of Lubrication
Equipment Division of Graco Inc., from June 16, 2003 to June 12, 2007.
He served as Vice President of Manufacturing for Graco Inc., from March
19, 2001 to June 16, 2003. From February 2000 to March 2001, he served as Vice
President of Contractor Equipment Division for Graco Inc., and served as Vice
President of Lubrication Equipment Division, from September 1999 to February
2000. He served as Contractor Equipment Manufacturing – Distribution Operations
Manager of Graco Inc., from February 1998 to September 1999 and from March 1997
to February 1998, Mr. McHale served as Director of Michigan Operations. From
February 1996 to March 1997, he served as Contractor Equipment Manufacturing
Operations Manager for Graco Inc. and from January 1994 to February 1996, he
served as Sioux Falls Plant Manager.
Mr. McHale has been Director Graco Inc. since June 12, 2007.
He serves as a Trustee of North Memorial Health Care.
Christian E. ROTHE is the CFO.
Subsidiaries
And partnership: Several
in the U.S. and worldwide.
FINANCIALS
On July 26, 2017, Graco Inc. reported unaudited consolidated
financial results for the second quarter
and six months ended June 30, 2017.
For the quarter, net sales were $379,483,000 against $348,126,000 a year
ago. Operating earnings were $98,769,000 against $78,342,000 a year ago.
Earnings before income taxes were $95,604,000 against $73,407,000 a year
ago. Net earnings were $79,828,000 against $50,947,000 a year ago. Net earnings
per common share on diluted basis were $1.38 against $0.89 a year ago. For the
six months period, net sales were $720,073,000 against $653,038,000 a year ago.
Operating earnings were $184,590,000 against $139,291,000 a year ago.
Earnings before income taxes were $177,179,000 against $131,009,000 a year ago.
Net earnings were $140,560,000 against $90,499,000 a year ago. Net earnings per
common share on diluted basis were $2.43 against $1.59 a year ago. Year-to-date,
cash flows from operations totaled $136 million, and changes in working capital
are in line with volume growth. Demand in the second quarter remained
broad-based across products and geographies and continues to exceed
expectations, as a result, the company is raising full-year 2017 outlook to
mid-to-high single-digit organic sales growth on a constant currency basis
worldwide, from a prior outlook of mid single-digit growth and to achieve
mid-to-high single-digit growth in each geographic region for the full year
2017. The company reported that excluding any effect from the change in
accounting for stock compensation, which will vary from quarter-to-quarter, the
effective tax rate for the third quarter and the full year is expected to be
approximately 30% to 31%.
On attachment: - 10K 2016
-
2nd 10Q 2017
Banks: US Bank
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LEGAL
FILINGS
Legal filings
& complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary (UCC):
Several