7/21/2016 1:26:00 AM
NEWS BRIEFS
Grainger Sales Edge Up, Earnings Fall
Grainger reported sales, including fasteners, increased 2% to $2.6 billion in the second quarter of 2016. Operating earnings fell 14% to $306 million, with net earnings dropping 22% to $173 million and EPS down 14% to $2.79.
“A bright spot for the quarter was the continued strong performance of our single channel online businesses, which posted topline growth of 34%,” said CEO Jim Ryan. “Despite the significant shortfall in Canada, which contributed to quarterly performance below our expectations, I have great confidence that we have positioned Grainger to capitalize on the attractive growth opportunity in the large and fragmented MRO market.”
Grainger sales in the U.S. declined 3% to $1.98 billion during Q2. The company said retail and government customers posted the strongest sales growth in the quarter.
Q2 sales in Canada dropped 19% to $194.4 million, with the segment posting a $28 million operating loss.
Sales in the company’s Other Businesses segment (Europe, Asia and Latin America) jumped 49% to $474.2 million, with Strong organic performance for the Other Businesses was driven by 34% daily sales growth for the single channel online businesses, partially offset by lower sales in Latin America. Segment operating earnings nearly doubled to $29.7 million. Web: grainger.com
Related Stories:
• Fastener Sales Decline at Fastenal
Share: