Graco Announces Business Restructuring Plan to Drive Growth

Group 1: Organizational Restructuring - Graco Inc. plans to shift to a new organizational structure to enhance growth opportunities and operational efficiency, establishing a market-oriented global structure [1] - Effective January 1 next year, the company will reorganize into four business divisions: Industrial, Expansion Markets, Contractor, and Powder [2] - The new global Industrial Division will combine existing Industrial and Lubrication Equipment Divisions along with the Process Transfer Equipment business [3] Group 2: Business Segments - The Contractor Division will be reorganized to better serve global customer needs, while the Powder Division will maintain its current structure [4] - Starting January 2025, Graco will operate under three reportable segments: Contractor, Industrial, and Expansion Markets [5] Group 3: Financial Outlook - Graco anticipates new products in the Contractor segment to drive incremental sales in 2024, despite expecting organic revenues to decline in the low single digits compared to the previous year [7] - The Zacks Consensus Estimate for Graco's 2024 earnings per share has decreased by 1.7% to $2.98 over the past 60 days [7] Group 4: Market Performance - Graco's shares have seen a slight decline of 0.2$83.71, while the company has gained 5.5% over the past three months, compared to the industry's 5.9% growth [1][6]