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Graco Inc. announced it would roll out a new line of paint sprayers in Home Depot stores, but said sales to the retailer would drop because of fewer stores carrying the line.

Minneapolis-based fluids management company, Graco (NYSE: GGG) said its already tested five new airless paint sprayers, ranging in price from $299 to $899, at 180 Home Depot stores.

Currently, the company provides paint sprayers for over 2,000 Home Depot stores, but the new sprayers will be sold in just 1,400 stores by February of 2008, when Graco will transition to the new line of sprayers.

Graco said it expects that its sprayers will generate higher per-store net sales than the old products, but said its 2008 sales to Home Depot are estimated to be approximately $7 to $8 million lower than 2007 due to the reduced number of stores it will offer products in.

Graco said it expects normal incremental expenses related to the launch and production of the new product will be incurred in 2007 and 2008, which the company estimates at approximately $5 million over the next 15 months, including $500,000 in 2007.

Tags: company, estimates, Home Depot, nyse, Products, provide, Stores

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