7/17/2014 2:07:00 PM
NEWS BRIEFS
Grainger Sales Up As U.S. Growth Continues

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Grainger reported sales, including fasteners, increased 5% to $2.5 billion in the second quarter of 2014. Results included 2 percentage points from acquisitions, net of dispositions, and a 1 percentage point reduction from foreign exchange.  Excluding acquisitions and foreign exchange, organic sales increased 4% driven by 5 percentage points from volume.

Q2 net earnings declined 5% to $206 million, while EPS decreased 3% to $2.94.

Sales in the U.S. rose 7%, including 2 percentage points from acquisitions, net of dispositions.  Excluding acquisitions, organic sales increased 5%, driven by 6 percentage points from volume.  Sales growth to customers in the Heavy and Light Manufacturing, Retail, Natural Resources and Commercial customer end markets contributed to the quarterly revenue increase.

U.S. segment operating earnings increased 8%, driven by the 7 percent sales growth and positive operating expense leverage, partially offset by lower gross profit margins.

“We continue to be pleased with the performance of our U.S. business,” stated CEO Jim Ryan.  “The investments we are making in growth and infrastructure continue to drive share gain, particularly among our large, more complex customers.”

In Canada, sales dropped 9% on lower volume, while operating earnings declined 48%, hampered by lower sales, a lower gross profit margin and negative operating expense leverage.

Sales at Grainger’s Other Businesses segment, including results from Asia, Europe, and Latin America, gained 14% in Q2, consisting of 16 percentage points from volume and price, partially offset by a 2 percentage points decline from unfavorable foreign exchange.  The sales increase was primarily due to strong revenue growth from Zoro and the business in Japan, which more than offset modest sales declines in Europe and Latin America.  

Other Businesses segment operating earnings “were roughly break-even.” 

Grainger sales in the first six months of 2014 grew 5% to $4.9 billion, while net earnings fell 2% to $423 million and EPS increased 1% to $6.

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Related Links:

• Grainger