Grainger reported sales, including fasteners, grew 2% to $2.63 billion in the third quarter of 2017. Operating earnings fell 13% to $281 million, driven by lower gross profit due to strategic pricing initiatives. Q3 net earnings dropped 13% to $162 million, while earnings per share decreased 9% to  $2.79. 

“Our U.S. business had strong volume in the quarter driven by our strategic pricing initiatives and an improving demand environment,” stated CEO DG Macpherson.

Sales in the U.S. declined 1% to $2.01 billion, while segment operating earnings dropped 13% to $297.9 million, driven by lower gross profit.

Q3 sales in Canada increased 5% to $188.2 million, with an operating loss of $15 million.

Sales for Grainger’s Other Businesses segment (Europe, Asia and Latin America) grew 11% to $536.9 million, boosted by gains in volume and price. Segment operating profit rose 8.2% to $26.9 million.

Overall sales during the first nine months of 2017 increased 2% to $7.8 billion, with operating earnings dropping 14% to $808.7 million and net earnings down 20% to $435 million. Web: Grainger.com