Graco 2009 Annual Report Download - page 17

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Portfolio enhancements, cost structure improvements,
working capital management and brand-building
excellence have fueled incremental improvements in
cash  ow generation, earnings performance and – most
notably – gross margin expansion. Though extraordinary
macroeconomic weakness set us back in 2008, we
regained our footing in 2009 and delivered a nearly
400-basis-point increase in gross margin, as well as
year-over-year increases in earnings and cash flow.
Continued investments in innovation and branding,
improved product mix, ongoing productivity savings
and cost discipline will help drive further gross margin
expansion and solid earnings growth.
NWL GROSS MARGIN
* Please refer to the Reconciliation of Non-GAAP Financial Measures on page 81 for a reconciliation to the most directly comparable GAAP  nancial measure.
PERFORMS
15
“NORMALIZED”
EARNINGS PER SHARE*
2009
$1.31
2008
$1.21
2007
$1.81
2006
$1.51
2005
$1.25
OPERATING CASH FLOW
in millions
2009
$603
2008
$455
2007
$655
2006
$643
2005
$642
 '%%* '%%+ '%%, '%%- '%%.
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