10/18/2011 11:59:00 AM
NEWS BRIEFS
Fabory Helps Grainger Achieve ‘Exceptional’ Quarter
Grainger reported record results for the third quarter of 2011, with sales, including fasteners, growing 11% to $2.1 billion and net earnings gaining 21% to $182 million. Q3 operating earnings increased 21%.
On August 31 Grainger completed its acquisition of Netherlands-based fastener distributor Fabory Group for about $344 million. Fabory sells 80,000 products to 120,000 customers from 110 locations in 14 countries, with projected 2011 revenue of $350 million.
“This was an exceptional quarter for Grainger,” said CEO Jim Ryan. “We saw consistent, double-digit, sales growth each month of the quarter and delivered strong earnings growth and cash flow. Grainger’s ability to help customers do more with less has been key to our success.
Ryan said the company’s growth drivers, such as product line expansion, eCommerce, inventory management services and sales force expansion, helping Grainger gain market share.
“Given our strong operating performance to date, and the inclusion of Fabory starting in September,” Ryan continued, “we have raised our 2011 sales growth guidance to a range of 11 to 12 percent and increased our expected earnings per share guidance to a range of $8.80 to $9.00.”
Sales for the U.S. segment increased 7% in the 2011 third quarter, driven by a 7 percentage point contribution from volume and 3 percentage points from price, offset by a 3 percentage point drag due to sales in 2010 related to the Gulf of Mexico oil spill. U.S. operating earnings increased 15%.
Sales for the Acklands-Grainger business in Canada increased 23% in U.S. dollars, boosted by strength in the heavy manufacturing, retail/wholesale, transportation, and agriculture and mining customer end-markets. Operating earnings in Canada increased 72%.
Grainger reported record results for the third quarter of 2011, with sales, including fasteners, growing 11% to $2.1 billion and net earnings gaining 21% to $182 million. Q3 operating earnings increased 21%.
On August 31 Grainger completed its acquisition of Netherlands-based fastener distributor Fabory Group for about $344 million. Fabory sells 80,000 products to 120,000 customers from 110 locations in 14 countries, with projected 2011 revenue of $350 million.
“This was an exceptional quarter for Grainger,” said CEO Jim Ryan. “We saw consistent, double-digit, sales growth each month of the quarter and delivered strong earnings growth and cash flow. Grainger’s ability to help customers do more with less has been key to our success.
Ryan said the company’s growth drivers, such as product line expansion, eCommerce, inventory management services and sales force expansion, helping Grainger gain market share.
“Given our strong operating performance to date, and the inclusion of Fabory starting in September,” Ryan continued, “we have raised our 2011 sales growth guidance to a range of 11 to 12 percent and increased our expected earnings per share guidance to a range of $8.80 to $9.00.”
Sales for the U.S. segment increased 7% in the 2011 third quarter, driven by a 7 percentage point contribution from volume and 3 percentage points from price, offset by a 3 percentage point drag due to sales in 2010 related to the Gulf of Mexico oil spill. U.S. operating earnings increased 15%.
Sales for the Acklands-Grainger business in Canada increased 23% in U.S. dollars, boosted by strength in the heavy manufacturing, retail/wholesale, transportation, and agriculture and mining customer end-markets. Operating earnings in Canada increased 72%. ©2011 GlobalFastenerNews.com
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Related Links:
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