Supply chain constraints such as logistics capacity and component availability had an unfavorable impact in the quarter and will likely persist for the rest of the year. On a sequential basis, gross margin rates were down 250 basis points as we saw cost pressures such as material, labor, freight and volume-based costs increased throughout the quarter. The majority of these cost increase impact the Contractor segment as that is our highest volume business.
We found that, even in this position, there is plenty of room for his legs. We have not used the Graco 4Ever 4-in-1 as a booster seat but are confident that the familiarity of the seat and ease of use will make it the best choice for our family. If you’re looking for one car seat that will last through all your child’s ages and stages, the Graco 4Ever 4-in-1 Convertible Car Seat is prepped to grow with them for ten years. I’m a science journalist turned investigative reporter on CR’s Special Projects team. My job is to shed light on issues affecting people’s health, safety, and well-being.
Since the Gray brothers founded graco jogging stroller nearly 100 years ago, we’ve built the company on the idea that great engineering and meticulous manufacturing leads to high quality, long lasting products. Our customers know that behind every product delivery is a promise of exceptional customer service. Graco (pronounced gray-co) is an American baby products company based in High Point, North Carolina. Graco was founded in 1942 in Philadelphia, Pennsylvania, by Russell Gray and Robert Cone as Graco Metal Products, a company that fabricated machine and car parts. Rex Thomas watched his wife sitting on the porch, rocking their baby in a swing with a string tied to it, while she read a book. In 1987, the company pioneered the invention of the Pack N’ Play Portable Playard, the world’s first portable play yard (designed by Nate Saint, Dave Saint’s son).
This increase is due to the improvement in earnings in the quarter, partially offset by increases in accounts receivable and inventories that reflect the growth in business activities. Significant uses of cash are dividend payments of $63 million and capital expenditures of $55 million, including $21 million for facility expansion projects. At current cost and volume, we are estimating that realized price, strong factory performance and current production activity will offset the higher product costs on a full year basis. Our operating teams are working diligently to minimize the disruptions and have been effective at keeping pace with our incoming order rates. Mix was favorable in the quarter due to the strong sales in the higher margin Industrial segment. We love that the Graco 4Ever 4-in-1 car seat complies with all Federal Aviation Administration guidelines and can be used on an airplane in the rear or forward-facing positions with the five-point harness.
And overall, I think, as Kathy said, for the year, we expect that price costs were going to be in good shape. We’re seeing the same cost pressures that everyone else is. They’re coming everywhere, steel, aluminum, copper, plastics, those are key components in graco travel system products. And some of the components that we buy also like electronics and motors and engines and even like subcontract premiums that we pay to folks that help us out when our demand spikes up, those are all much higher. It’s hard to say that there is none of that happening in terms of people ordering in advance and trying to get ahead of the curve.