Exhibit 99
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Graco Inc. (the "Company") wishes to take advantage of the "safe harbor"
provisions regarding forward-looking statements of the Private Securities
Litigation Reform Act of 1995 and is filing this Cautionary Statement in order
to do so.
From time to time various forms filed by the Company with the Securities
and Exchange Commission, including the Company's Form 10-K, Form 10-Q and Form
8-K, its Annual Report to Shareholders, and other written documents or oral
statements released by the Company, may contain forward-looking statements.
Forward-looking statements generally use words such as "expect," "foresee,"
"anticipate," "believe," "project," "should," "estimate," "will", and similar
expressions, and reflect the Company's expectations concerning the future. Such
statements are based upon currently available information, but various risks and
uncertainties may cause the Company's actual results to differ materially from
those expressed in these statements. Among the factors which management believes
could affect the Company's operating results are the following:
o With respect to the Company's business as a whole, the Company's
prospects and operating results may be affected by:
- changing economic conditions in the United States and other major
world economies, including economic downturns or recessions,
capital goods investment activity, interest rates and foreign
currency exchange rate fluctuations;
- international trade factors, including changes in international
trade policy, such as export controls, trade sanctions, increased
tariff barriers and other restrictions; weaker protection of the
Company's proprietary technology in certain foreign countries,
the burden of complying with foreign laws and standards; and
potentially burdensome taxes;
- the ability of the Company to develop new products and
technologies; maintain and enhance its market position relative
to its competitors; maintain and enhance its distribution
channels; identify and enter into new markets; successfully
conclude and integrate acquisitions; realize productivity and
product quality improvements; and continue to control expenses.
- disruption in operations, transportation, communication, sources
of supply, customer operations or payment, caused by political or
economic instability, acts of God, labor disputes, war, embargo,
fire or other cause beyond its reasonable control.
- changes in the markets in which the Company participates,
including consolidation of competitors and major customers, and
price competition
o The prospects and operating results of the Company's Contractor
Equipment Division may be affected by: variations in the level of
residential, commercial and institutional building and remodeling
activity; the availability and cost of financing; changes in the
environmental regulation of coatings; consolidation in the paint
equipment manufacturing industry; changes in the business practices
(including inventory management) of the major distributors of
contractor equipment; changes in construction materials and
techniques; the cost of labor in foreign markets; the regional market
strength of certain competitors; the level of government spending on
infrastructure development and road construction, maintenance and
repair; and the nature and extent of highway safety regulation.
o The prospects and operating results of the Company's
Industrial/Automotive Equipment Division may be affected by: the
capital equipment spending levels of industrial customers; the
availability and cost of customer financing; changes in the
environmental regulation of coatings; changes in the technical
characteristics of materials; changes in application technology; the
ability of the Company to meet changing customer requirements;
consolidation in the fluid handling equipment manufacturing industry;
the equipment purchase plans of major automobile manufacturers
worldwide (which are in turn impacted by the level of automotive sales
worldwide); changes in automotive manufacturing processes; the pricing
strategies of competitors; consolidation in the automobile
manufacturing industry worldwide; and the success of the Company in
moving its automotive customers from custom-designed systems to the
purchase of the Company's package modules sold through integrators and
distributors.
o The prospects and operating results of the Company's Lubrication
Equipment Division may be affected by consolidation in the oil
industry; the development of extended life lubricants for vehicles;
the reduction in the need for changing vehicle lubricants; consumer
trends in "do-it-yourself" vs. "do-it-for-me" oil changes;
consolidation of automotive dealerships; trends in spending by state
and local governments, and variations in the equipment spending levels
of the major oil companies.