Grainger Eyes Record Sales & Earnings

Jason Sandefur

Grainger reported sales rose 6% to a record $5.9 billion in 2006, while net earnings increased 11% to $383 million.
Sales at its Branch-based segment, including the U.S., Mexico and China, grew 5.6% to $4.91 billion, which included sales growth of 5% during the fourth quarter of 2006 to $1.22 billion. The strongest growth came from government customers and the heavy manufacturing and commercial markets, the company stated. Segment operating earnings improved 13.5% to $593.4 million.
Sales in China were less than $1 million in 2006. Grainger plans to open additional locations around Shanghai and add more sales people.
Sales at its Canadian division, Acklands-Grainger, gained 12.6% to $565.1 million for the year, while operating earnings increased 8.8% $15.24 million.
Overall sales during the fourth quarter gained 5% to $1.5 billion, but net earnings dropped 5% to $99 million. Web: grainger.com �2007 FastenerNews.com