Grainger’s U.S. Sales Approach Double-Digit Growth

Jason Sandefur

Grainger reported Branch-based sales, including the U.S., Mexico and China, gained 8% to $1.33 billion, which included an 8% growth rate in the U.S. Branch-based sales were boosted by U.S. growth initiatives, market expansion and product line expansion. Sales in Mexico grew 26%, and overall Branch-based operating profit improved 13% during Q2. Grainger opened one new full service branch in the U.S. and closed another, while opening two new branches in Mexico and two will-call express locations in Shanghai.
Six-month revenue for Grainger’s Branch-based segment increased 9% to $2.63 billion, while operating profit gained 16.6% to $331.9 million.
Sales at Acklands-Grainger, the company’s Canadian operations, gained 8% to $159.28 million during Q2. Operating earnings jumped 243% to $10.5 million, mainly from improved gross profit margins and lower operating expenses. Six-month sales in Canada edged up 5.4% to $301.3 million, and operating income during the period more than doubled to $19.5 million.
Overall Q2 Grainger sales grew 8% to a record $1.6 billion, while net earnings increased 12% to $105 million. Six-month revenue improved 8% to $3.1 billion, with net earnings soaring 15% to $207 million.
“We continue to gain market share and earn our customers’ trust and business by helping them save time and money,” commented CEO Richard Keyser. Web: grainger.com �2007 FastenerNews.com