Grainger reported sales, including fasteners, increased 9% to $2.8 billion in the first quarter of 2018, driven by an 8 percentage point increase from volume, 2 percentage points from foreign exchange and 1 percentage point from higher sales of seasonal products, partially offset by a 1 percentage point decline in price and a 1 percentage point decline from the divestiture of a specialty business.

“Results for the quarter were strong, led by increased volume in our U.S. business with both large and medium customers, supported by a strong demand environment,” stated CEO DG Macpherson, Chairman and Chief Executive Officer.

Q1 operating earnings improved 14% to $335 million, driven by higher sales and strong expense leverage. Net earnings rose 32% to $232 million.

First-quarter sales for the U.S. segment increased 8% to $2.11 billion. Sales to customers in the Retail and Contractors end markets led the sales performance in the quarter. Operating earnings for the U.S. segment increased 15% to $356.5 million, driven by higher sales and improved expense management.

First quarter sales for Canada decreased 2% to $181.8 million, consisting of a 13 percentage point decline in volume, partially offset by 7 percentage points from higher price. The business in Canada posted a $20 million operating loss.

Sales for the Other Businesses segment (Europe, Asia and Latin America) increased 18% to $588.1 million, consisting of 12 percentage points of growth from volume and price and 6 percentage points from foreign exchange. Segment operating earnings rose 12.5% to $36 million.

Grainger increased its guidance to sales growth of 5% – 8% for the year. Web: grainger.com