Graco (GGG) Q2 Earnings Beat Estimates, Sales Decline Y/Y

Core Insights - The company reported a decline in net sales in the Industrial segment, totaling $155.7 million, which is a 5% decrease year over year, contributing to 28.1% of the quarter's sales [1] - Operating income increased by 3% year over year to $161.4 million, with an operating margin improvement of 1.1 percentage points compared to the previous year [2] - The company’s net sales in the Contractor segment rose to $269.6 million, reflecting a 5% year-over-year increase, contributing to 48.7% of the quarter's sales [6] Segment Performance - The Process segment reported net sales of $127.9 million, down 9% year over year, contributing to 23.2% of the quarter's sales [14] - Core sales in the Industrial segment decreased by 4% year over year, while core sales in the Contractor segment increased by 6% [1][6] - Sales from the Americas increased by 5% year over year, while sales in Europe, the Middle East, and Africa decreased by 6%, and sales from the Asia Pacific fell by 18% [5] Financial Overview - The company had cash and cash equivalents of $666 million at the end of the second quarter, up from $538 million at the end of 2023 [15] - Net cash generated from operating activities in the first half of 2024 was $257.9 million, compared to $282.3 million in the same period last year [19] - The company paid out dividends worth $86 million in the first six months of 2024, an increase of 8.9% from the previous year [19] Outlook - The company anticipates organic net sales to decline in the low single-digits on a constant-currency basis for 2024 [7]