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GRACO Graco Reports Record First Quarter Results April 21 , 2021 Sales Growth in All Segments and Regions MINNEAPOLIS -- ( BUSINESS WIRE ) -- Apr . 21 , 2021-- Graco Inc. ( NYSE : GGG ) today announced results for the first quarter ended March 26 , 2021 . Summary $ in millions except per share amounts Three Months Ended Mar 26 , Mar 27 , % 2021 2020 Change Net Sales Operating Earnings $ 454.1 $ 373.6 22 % 128.3 89.8 43 % Net Earnings 105.7 72.8 45 % Diluted Net Earnings per Common Share $ 0.61 $ 0.42 45 % Adjusted ( non - GAAP ) : ( 1 ) Net Earnings , adjusted $ 101.6 $ 65.0 Diluted Net Earnings per Common Share , adjusted $ 0.58 $ 0.38 56 % 53 % ( 1 ) Excludes impacts of excess tax benefits from stock option exercises . See Financial Results Adjusted for Comparability below for a reconciliation of adjusted non - GAAP financial measures to GAAP . • Net sales increased by 22 percent , with double - digit percentage growth in all regions and in the Industrial and Contractor segments . Favorable currency translation contributed 4 percentage points of sales growth . • Gross profit margin rate was more than 1 percentage point higher than the first quarter last year . Changes in currency translation rates accounted for over half of the increase . . Operating expense leverage for the quarter remained strong . Total operating expenses increased 9 percent primarily due to increases in sales and earnings - based expenses . • The effective income tax rate for the quarter increased 5 percentage points primarily due to a decrease in excess tax benefits related to stock option exercises . " I am pleased with Graco's performance in the first quarter , where we achieved organic , constant currency growth in every region and reportable segment , " said Patrick J. McHale , Graco's President and CEO . " We are continuing to see strong performance from our Contractor segment and improving demand in both our Industrial and Process groups . Our manufacturing and purchasing teams performed well to meet the increase in demand in spite of external supply chain challenges . " Consolidated Results Net sales for the quarter increased 22 percent from the comparable period last year ( 18 percent at consistent translation rates ) . Sales increased 18 percent in the Americas , 25 percent in EMEA ( 17 percent at consistent translation rates ) and 30 percent in Asia Pacific ( 22 percent at consistent translation rates ) . Changes in currency translation rates increased worldwide sales by $ 11 million for the quarter ( 4 percentage points ) . Gross profit margin rate for the quarter increased by 1 percentage point from the comparable period last year . Favorable changes in currency translation rates , realized pricing and higher production volume were partially offset by the unfavorable effects of material costs and product and channel mix . Total operating expenses for the quarter increased $ 10 million ( 9 percentage points ) mostly due to increases in sales and earnings - based expenses and product development spending . Other non - operating expenses decreased $ 5 million for the quarter mostly due to favorable market valuation changes on investments held to fund certain retirement benefits liabilities . The effective income tax rate for the first quarter was 16 percent , up 5 percentage points from the comparable period last year , primarily due to a decrease in excess tax benefits related to stock option exercises . Segment Results Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses . For a reconciliation of segment operating earnings to consolidated operating earnings , refer to the segment information table included in the financial statement section of this release . Certain measurements of segment operations are summarized below :