7/16/2010
NEWS BRIEFS
Gains in Heavy Manufacturing Sales Boost Grainger

Grainger reported U.S. sales, including fasteners, increased 11% – or 9% excluding acquisitions – to $1.49 billion during the second quarter of 2010, led by a 20% jump in sales to the heavy manufacturing sector. Daily sales increased 8% in April, 10% in May and 14% in June. Q2 operating earnings in the U.S. rose 31% to $231 million, boosted by higher sales and continued cost cutting.

“We are very encouraged by the strong organic growth in the quarter,” stated CEO Jim Ryan.

Six-month U.S. sales improved 9% to $2.9 million, while half-year operating earnings gained 23% to $432.6 million.

The Lab Safety Supply / Grainger Industrial Supply integration, announced in late 2008, also contributed to U.S. segment performance, generating more than $88 million of additional revenue and $40 million of cost savings.

Sales for the Acklands-Grainger business (Canada) grew 29% to $207.8 million during the second quarter, led by strong growth to customers in the agriculture and mining, oil and gas, heavy manufacturing and forestry sectors. Daily basis were up 17% in April, up 12% in May and up 14% in June. Q2 operating earnings in Canada increased 30% to $12.7 million, boosted by lower product costs, a stronger Canadian dollar, and improved product mix tied to an increase in sales to small and medium size customers.

Six-month sales in Canada rose 32% to $402 million, with operating earnings gaining 21% to $19 million. ©2010 GlobalFastenerNews.com

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