Grainger sales up 13%
Grainger reported first quarter sales of $1.9 billion increased 13 percent versus $1.7 billion in the first quarter 2010.
Net earnings for the quarter increased 59 percent to $158 million versus $99 million in 2010. Earnings per share increased 66 percent to $2.18 versus $1.31 for the first quarter 2010.
"This was an exceptionally strong quarter for Grainger. Our investment in growth is paying off as demonstrated by our strong sales and earnings performance. Expanding product lines, providing new services that complement our products, investing further in eCommerce and increasing our sales force, are all contributing to gaining market share in NorthAmerica. In addition, we're continuing to push into high-growth, emerging markets and the yield on these investments is improving," said chairman, president and chief executive officer Jim Ryan. "Given our position of strength and MRO market leadership, we intend to more aggressively fund similar investments during the remainder of the year to further accelerate our ability to gain share in this consolidating market."
Sales for the United States segment increased 9 percent in the 2011 first quarter. Sales to all customer end-markets were up in the quarter, led by heavy manufacturing, which increased in the high teens.
Sales for the Acklands-Grainger business in the quarter increased 25 percent in U.S.dollars versus the 2010 first quarter, 23 percent on a daily basis. In local currency, daily sales increased 17 percent for the quarter, driven by 10 percentage points from volume, 4 percentage points from acquisitions, 2 percentage points from price and 1percentage point from sales of seasonal products. Sales in Canada benefited from strength in the heavy manufacturing, agriculture and mining, forestry, oil and gas, transportation and government customer end-markets.
Sales for the other businesses, which include Japan, Mexico, India, Puerto Rico, China, Colombia and Panama, increased 44 percent versus prior year, due primarily to strong growth in Japan and Mexico, along with the business in Colombia, which was acquired in June 2010. Although smaller in size, the remaining four businesses also posted strong sales growth in the quarter.
The improvement was primarily driven by strong earnings growth in Japan and Mexico, coupled with lower operating losses in China and India.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
