Grainger Reports Record Sales

Jason Sandefur

Grainger reported sales, including fasteners, grew 11% to a record $1.8 billion during the third quarter of 2008, while net earnings climbed 28% to $140 million.

“Our third quarter and year-to-date results are a testimony to Grainger’s winning strategy and our employees’ ability to execute,” said CEO James Ryan.

The “strong” performance prompted Grainger to boost its earnings guidance to a range of $6 to $6.20 per share.

Grainger’s Branch-based revenue, which includes sales in the U.S., Mexico, China and Panama, increased 10% to $1.52 billion during Q3, with operating earnings soared 31% to $226.6 million. Grainger raised prices in August.

The U.S.-based segment closed three full-service branches and two will-call express locations during the period, while opening full service branches in Mexico and Panama. Grainger will close six will-call locations in China, giving the segment 460 locations.

Branch-based sales for the first nine months of 2008 rose 8% to $4.35 billion while operating earnings improved 18% to $596.4 million.

Revenue from Acklands-Grainger Branch-based segment, located in Canada, gained 17% to $190.75 million, while earnings increased 38% to $14.2 million. Nine-month sales in Canada improved 21% to $565.9 million, with earnings growing 40% to $41.8 million.

Overall sales for the first nine months of 2008 rose 9% to $5.3 billion, while net earnings gained 16% to $367 million. Web: grainger.com �2008 FastenerNews.com