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GRACO Graco Reports Third Quarter Results October 20 , 2021 Industrial and Process Segments Drive Sales Growth MINNEAPOLIS -- ( BUSINESS WIRE ) -- Oct . 20 , 2021-- Graco Inc. ( NYSE : GGG ) today announced results for the third quarter ended September 24 , 2021 . Summary $ in millions except per share amounts Net Sales Operating Earnings Net Earnings Diluted Net Earnings per Common Share Adjusted ( non - GAAP ) : ( 1 ) Operating Earnings , adjusted Three Months Ended Nine Months Ended Sep 24 , Sep 25 , % Sep 24 , Sep 25 , % 2021 2020 Change 2021 2020 Change $ 486.7 $ 439.3 11 % $ 1,448.0 $ 1,179.8 23 % 124.6 125.0 0 % 386.7 259.6 49 % 103.8 114.1 ( 9 ) % ( 11 ) % 319.6 215.8 48 % 1.83 $ 1.26 45 % $ 0.59 $ 0.66 $ $ 124.6 $ 125.3 $ 100.3 $ 101.8 Net Earnings , adjusted Diluted Net Earnings per Common Share , adjusted $ 0.57 $ 0.59 31 % ( 1 ) % $ 386.7 $ 294.8 ( 1 ) % $ 309.9 $ 229.2 35 % ( 3 ) % $ 1.78 $ 1.34 33 % ( 1 ) Excludes impacts of the prior year impairment , excess tax benefits from stock option exercises and certain non - recurring tax provision adjustments . See Financial Results Adjusted for Comparability below for a reconciliation of adjusted non - GAAP financial measures to GAAP . • Quarterly sales growth in the Industrial and Process segments was partially offset by a decrease in sales in the Contractor segment . Favorable currency translation rates contributed 2 percentage points of sales growth for the quarter . • Gross profit margin rate for the quarter weakened as realized pricing , increased production volume and favorable changes in currency translation rates were unable to offset higher product costs caused by supply chain and inflationary challenges . • Total operating expenses for the quarter increased as a percentage of sales due to increases in sales and earnings - based expenses . " Broad - based end market recovery continued in our Industrial and Process segments during the quarter with double - digit growth in all reportable regions , " said Mark Sheahan , Graco's President and CEO . " Incoming order rates remain strong in our Contractor segment despite tough comparisons from the prior year . Product availability , raw material inflation and logistical challenges throughout the quarter had a negative impact on operating earnings , especially in the Contractor segment . " Consolidated Results Net sales for the quarter increased 11 percent from the comparable period last year ( 9 percent at consistent translation rates ) . Sales increased 1 percent in the Americas , 24 percent in EMEA ( 22 percent at consistent translation rates ) and 32 percent in Asia Pacific ( 27 percent at consistent translation rates ) . Year to date sales increased 23 percent from the comparable period last year ( 20 percent at consistent translation rates ) . Sales increased 16 percent in the Americas , 35 percent in EMEA ( 27 percent at consistent translation rates ) and 32 percent in Asia Pacific ( 25 percent at consistent translation rates ) . Changes in currency translation rates increased worldwide sales by $ 6 million for the quarter and $ 29 million for the year to date . The third quarter gross profit margin rate decreased 1 percentage point from the comparable period last year as realized pricing , increased production volume and favorable changes in currency translation rates were unable to offset higher product costs caused by supply chain and inflationary challenges . For the year to date , the gross profit margin rate increased approximately 1 percentage point as realized pricing , increased production volume and favorable changes in currency translation rates offset higher product costs . Total operating expenses for the quarter increased $ 20 million ( 19 percent ) compared to the third quarter last year , including approximately $ 9 million ( 9 percentage points ) of increases in sales and earnings - based expenses . Year - to - date operating expenses increased $ 57 million ( 18 percent ) compared to the comparable period last year . The increase includes $ 28 million ( 9 percentage points ) of increases in sales and earnings - based expenses and $ 5 million ( 2 percentage points ) related to foreign currency translation . Other non - operating expenses were comparable for the quarter and decreased $ 6 million for the year to date mostly due to favorable market valuation changes on investments held to fund certain retirement benefits liabilities . The effective income tax rate was 15 percent for the quarter and 16 percent for the year to date , up 9 percentage points and 4 percentage points from the comparable periods in the prior year , respectively . Adjusted to exclude the impacts of excess tax benefits from stock option exercises and additional foreign tax benefits ( see Financial Results Adjusted for Comparability below ) , the adjusted effective income tax rate was 18 percent for the