6/11/2012 10:25:00 AM
NEWS BRIEFS
Acquisitions Boost Grainger Sales in May
Grainger reported May sales increased 13% versus May 2011, boosted by a 5 percentage point contribution from acquisitions and a 1 percentage point decline from foreign exchange.
Organic monthly sales on a daily basis increased 9%, including 6 percentage points from volume and 3 percentage points from price. May 2012 had 22 selling days, one more than May 2011.
Sales in the U.S. increased 8% during May, consisting of 4 percentage points from volume and 4 percentage points from price.
Grainger said for the U.S. its natural resources market was up in the mid-teens; heavy manufacturing was up in the low double digits; light manufacturing, retail, and commercial were up in the high single digits; reseller and government were up in the mid-single digits; and contractor sales were down in the low single digits.
The company’s Canadian segment saw sales grow 9%, including a 12 percentage point contribution from volume and 2 percentage points from price, offset by a 5 percentage point decline from foreign exchange. In local currency, sales for the Canadian segment increased 14%. “Strong growth to customers in the Commercial, Utilities and Retail end markets contributed to this performance.”
Monthly sales to other geographic regions jumped 86%,primarily due to the incremental sales from Fabory in Europe and the recent acquisition in Brazil. “Excluding the acquisitions, sales for our Other Businesses increased 22% driven primarily by strong growth in Japan and Colombia.”
In early May 2012 Grainger opened new distribution centers in Patterson, CA, and Saskatoon, Saskatchewan, Canada, bringing its global distribution network to 28 facilities.
Grainger achieved record results for the opening quarter of 2012, with sales climbing 16% to $2.2 billion and net earnings growing 19% to $188 million. Sales in the U.S. rose 11% to $1.7 billion, while Canadian revenue increased 13% to $272.9 million. ©2012 GlobalFastenerNews.com
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